Outlook 2020: Ten Investing Themes for the Coming Year
Our thoughts on key macro questions, emerging opportunities, and risks in 2020.
Authored by: Wade O'Brien
Trends in European Credit
European credit investors have enjoyed significant gains in 2019 as the combination of weak economic data and central bank easing has pushed yields lower. Investors will need to be nimble to find attractive risk-adjusted returns in the months ahead.
Playing Offense
Investors should review existing policies regarding portfolio rebalancing and tactical asset allocation and ensure they have a strategy to play offense during the next downturn.
What Should Investors Expect in 2019?
Investors should expect more volatility in 2019, as many of the trends and political dynamics that have rattled confidence over the last few months seem unlikely to dissipate in the months ahead.
Outlook 2019: More Risk for Less Return?
Although we are more cautious heading into 2019 than we were 12 months ago, we still think a roughly neutral allocation to risk assets is the right approach.
Taking a CLOser Look at CLOs
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.
Rising from the Ashes: Key Developments Since the Global Financial Crisis
In this report, we briefly highlight five key post-GFC developments and discuss how investors might adapt their portfolios to these changes.
Are the Credit Bears Getting Lost in the Woods?
Worries over the health of US credit markets have risen in recent months, with numerous reports highlighting the growing vulnerability of indebted companies (and thus investors) to rising rates and a potential turn in the economic cycle. This paper provides our updated thoughts across US credit markets, as well as some tactical tilts investors could employ to help navigate a few of these headwinds.
Amid Rising Risks, Should Investors Maintain Credit Allocations?
Yes, but investors should be selective in allocating to credit markets at this point in the cycle, and understand that the overvaluation of many credit assets could make attractive returns hard to come by.
Thoughts on the “Retail Apocalypse”
Retail is changing and some companies face challenges, but this theme has probably been overhyped, and implications for investors are limited.