Demand for collateralized loan obligations (CLOs) has soared in recent years, despite lingering suspicions about asset-backed securities due to their role in the global financial crisis. This paper provides an update on recent trends in the CLO market and discusses what we believe are some of the more attractive implementation options.
Left unaddressed, the significant and increasing problem of pension underfunding could sink some municipal issuers in the next market downturn. Although investors in high tax brackets will likely continue to benefit from holding municipal bonds as a cornerstone in their portfolios, they should diversify across states and issuers that are better prepared to navigate any rough seas ahead.
If implemented appropriately, we believe quality will decline less than broad equities under most stress scenarios.
Although crude oil prices above $100 a barrel will pinch consumer pockets, investor anxiety on this topic is both premature and exaggerated.
Agribusiness private equity can be easy to overlook, but institutional investors would be remiss to disregard the sector. In this edition of Real Asset Dynamics, we examine the sector’s defining characteristics, recent industry trends, and their implications. Investors are cautious about agriculture investments. Farmland managers, which dominate the global private equity agriculture landscape, tend to…
Elevated equity market valuations and potentially rising bond yields suggest the return environment for traditional risk assets could be difficult. Faced with this challenge, institutional investors are seeking alternative sources of return. Alternative risk premia (ARP) strategies – which harvest well-established risk premia and market anomalies across asset classes – may fit the bill. ARP…
Our biannual report summarizes asset allocation for 103 of Cambridge Associates’ US-based private clients.
Our biannual report summarizes asset allocation and total investment performance for 29 of Cambridge Associates’ UK foundation and endowment clients.
Neither. The emerging markets equity managers that we respect and follow closely have not become meaningfully more aggressive; however, many have used the volatile market conditions to do some bargain hunting, upgrade portfolios, and modestly shrink their cash balances.
Investor approaches to mission-related investing (MRI) are as varied as the social and environmental outcomes they seek to achieve. Based on responses from 148 clients—54 of which are engaged in mission-related investing—this chart book explores trends in the structure, implementation, and governance of MRI programs; investor motivations and perceived challenges; and expectations for future growth in MRI investment activity.