Market Matters: December 31, 2024
Global equities advanced in Q4 as performance diverged among regions.
Credit/Fixed Income
Specialty Finance Investing: A Versatile Tool for Private Credit Investors
Specialty finance investing can effectively complement a broad private credit allocation. It enhances portfolio diversification while preserving capital and offers to create stability through a variety of underlying asset types and potential return targets.
2025 Outlook: Interest Rates
We expect most major central banks to continue cutting policy rates, which should allow bonds to outperform cash. With breakeven inflation rates likely to be range bound, returns of inflation-linked and nominal bonds should be similar.
2025 Outlook: Credit Markets
We expect liquid credit returns to decline due to low credit spreads and anticipated Fed easing. Direct lending returns should moderate but continue to outperform their liquid counterparts. Meanwhile, insurance-linked securities will continue to benefit from strong demand, and increased transaction volumes should support both specialty finance and credit opportunities managers. In emerging markets, currencies should become a tailwind for local bonds.
Market Matters: November 30, 2024
Global equities advanced as performance diverged among regions. US stocks surged to new all-time highs, whereas developed markets (DM) ex US peers lagged, and emerging markets (EM) shares declined.
US Manager Universe Statistics: Third Quarter 2024
This publication presents manager performance for 37 asset classes and substrategies, showing the median, mean, and key percentiles of return. Relevant indexes for each asset class are also included to provide market context.
VantagePoint: Deconstructing US Debt Dynamics
Despite alarming headlines about rising US debt, investors should resist making drastic portfolio changes. While an immediate crisis appears unlikely, the risk could increase if the United States fails to manage its debt effectively. Therefore, reviewing potential portfolio adjustments at the margin that might enhance future returns is prudent.
Private Infrastructure: Secular Themes Offer Compelling Opportunities
This note provides an update on the current opportunity set in infrastructure investments and highlights some of our preferred areas in the private space, including energy transition and digital infrastructure.
Should Investors Alter Portfolios After US President Trump’s Re-election?
No, not at this time. While the Trump administration’s policies will impact markets, we expect other factors will be larger drivers of long-term investment performance.
Market Matters: October 31, 2024
Global equities and fixed income declined in October as rising bond yields weighed on performance across a broad swath of asset classes.