In the article, "Quality Stocks for Long-Term Holding," Morgan Stanley outlines its analysis of the current bear market and presents its best long-term picks based on the sustainability and quality of the business model, as well as the opportunity to
Key takeaways 60/40 portfolios have certainly seen better times, having recorded their worst-performing year since 2008. A turbulent 2022, however, could be the precursor for a brighter future especially for investors looking to balance long-term growth of capital, conservation of
On 19 December 2022, European Union (EU) ministers agreed on a mechanism intended to mitigate high natural gas prices which will suspend dealing in title transfer facility (TTF) gas trading on EU trading venues (OTC markets are excluded) if …
The Federal Open Market Committee (FOMC) meeting held in March 2023 included projections of the most likely outcomes for real GDP growth, the unemployment rate, and inflation. Each participant's projections were based on their assessment of appropriate monetary policy and
A decline in the ecosystem services that nature provides will initially pose a direct physical risk to businesses as harvests become more unreliable, weather patterns change and pollinators no longer support agriculture. The risk is both event-driven, e.g. flooding or
In State Street Global Advisors' report titled "EMEA-Listed ETF Flash Flows", it is revealed that EMEA-domiciled ETFs experienced net outflows of $893mn last week. This was largely driven by outflows from equity and fixed income ETFs, which lost $757mn and
The collapse of Credit Suisse's shares on 17 March 2023, after comments made by its largest shareholder, triggered a panic on the markets and raised fears of European systemic risk. The bank had already faced a critical moment in autumn
The State Bank of Vietnam recently cut its benchmark rate by 100 basis points, dropping from 4.5% to 3.5%. Catherine Reichlin examines the implications of this move in her Bond Moment report. Although Vietnam already had low rates compared to
In their report titled "UBS acquisition of Credit Suisse," UBS lays out the attractive financial terms and significant liquidity support provided by the Swiss National Bank. Despite this acquisition, UBS's strategy remains unchanged with plans for growth in the US
Renewable energy has become a popular choice in recent years due to its potential to reduce carbon emissions and promote sustainability. However, the growth of renewables also poses new challenges and raises questions about their reliability and effectiveness. This year's
Rate Hike and Banking Sector Stability. In a widely anticipated move, the US Federal Open Market Committee (FOMC) increased rates by 25 basis points, despite recent upheaval in the banking sector. The FOMC stated that the US banking system is
The global banking sector is currently facing a challenging time, with banks in the United States adopting a precautionary mode. Meanwhile, the Federal Reserve seems to be prepared to reconcile with a credit crunch, as long as it's not too
The SVB failure has put US regional banks under pressure, with concerns raised among investors and regulators. The main cause of failure was an asset-liability mismatch, resulting in materialized losses from sales of quality bonds that were trading down due
Credit Suisse has been at the center of attention over the last few days, with significant market volatility around both its equity and debt instruments. After extensive work with our research team, we view the current situation as an issue
Digital assets promise economic opportunities, but effective regulation and infrastructure are necessary for a healthy marketplace. OMFIF presents a report on the progress towards a digital asset ecosystem, examining different kinds of digital assets, infrastructure, legal frameworks, and regulatory policies.
UBS quarterly report shows private markets had lower volatility in returns, encouraging increased allocations to alternatives, and a preference for sustainable investments is likely to continue with new regulatory requirements, pointing to tailwinds for sustainability themes in private market investments.
DoubleLine Capital has released a research report titled "Unpacking the CAPE Index," which examines the Shiller Barclays CAPE U.S. Sector Total Return USD Index (CAPE Index). The index uses a variation of the cyclically adjusted price-to-earnings ratio (CAPE ratio) to
Global growth remains resilient, but the tightening of central bank policies is expected to impact economic growth and earnings outlook in the latter half of the year. The US Federal Reserve and other central banks are hawkish due to services
Algorithmic trading, an automated approach to trading that utilizes computer algorithms, has seen a rise in popularity in recent years. With algorithms creating buy and sell orders based on predetermined criteria, the entire trading process is automated. The use of
The post-Covid rally in global private equity came to a halt in 2022, with the Federal Reserve's move to raise interest rates being a key factor. The rate increases sparked concerns about persistent inflation and fueled speculation about recession, causing
Interest rate and inflation worries gain the upper hand as financial markets experience a breather after a strong start to the year. The reopening of the Chinese economy and easing inflation led to a relief rally, but higher-than-expected inflation data
According to Lael Brainard, the Vice Chair of the Board of Governors of the Federal Reserve System, recent experience with the pandemic and Russia's war against Ukraine has highlighted the challenges for monetary policy in responding to a series of
The year 2022 has been one of unpredictability and volatility for the global banking industry. The shocks to the system, including geopolitical instability and the lingering effects of the COVID-19 pandemic, have resulted in a poor outlook for global banking
Although criticised for their lack of enforceability, these commitments have the benefit of addressing the problem in its full complexity whilst involving private stakeholders in defining solutions. The global framework established at the end of the COP includes the active
The recent collapses of Silicon Valley Bank (SVB) and Signature Bank have caused some investors to worry about systemic risk in the banking system and its impact on the domestic economy. However, these concerns may be unwarranted. According to financial
Market reactions to the ongoing banking turmoil resulted in a significant downward revision of expectations for the policy rate of both the Federal Reserve and the European Central Bank (ECB). The market expressed its skepticism regarding the central banks' ability
In a world in which asset managers are struggling to differentiate themselves and outperform their benchmarks, we believe that impact investing provides an answer largely through innovative portfolio construction and we would particularly like to highlight: The results obtained by
Growth strategies have long overshadowed dividend strategies. However, changing macroeconomic conditions have turned the tables and dividend investments are enjoying their time in the sun. While this coincides with value’s long-awaited comeback, value and dividend stocks have distinctive characteristics. We
The alternative fixed income asset class offers investors a diverse range of investment options, including private debt, consumer loans, mortgage investments, insured loans, SME loans, infrastructure debt, and asset-backed securities (ABS). These assets have the potential to provide higher yields
The current optimism in financial markets is not only benefiting equity markets but also emerging debt markets, including the riskiest ones, known as “frontier” or “pre-emerging” markets. However, not all markets are booming. Despite specialized investors making gains of over
Inflationary pressures mean monetary policy must be tighter and more restrictive than it has been in the recent past. Higher for longer interest rates will be an important feature of a new regime in policy and market behaviour. The global
Central Bank of Ireland Quarterly Bulletin reveals gradual recovery of Irish economy amidst easing inflationary pressures and uncertainty over future path of inflation and public finances. According to the Quarterly Bulletin released by the Central Bank of Ireland, the country's
An examination of smoothing and other perceived benefits of private equity that have commanded a premium fee despite more cost-efficient alternatives. In this piece, the author discusses the appeal of private equity (PE) to investors, highlighting characteristics such as high
Gold is a commodity priced in dollars. Like other commodities priced in dollars, the gold price is inversely correlated with the trade-weighted dollar (chart). The former has been rebounding since late last year as the dollar has been weakening on
This document explores the gender gap in retirement savings and provides solutions for narrowing the gap. While both men and women have access to retirement plans, women tend to contribute less, save less, and have less confidence in their retirement
This report discusses how the tightening of monetary policy and inflation have affected fixed-income markets and business models, leading to tighter financial conditions that are likely to continue. The report also explores potential areas of strain for investors, such as
The US loan market saw a disappointing year due to economic headwinds and negative credit rating migration, leading to lower M&A activity and slow new loan creation. While Q4 showed stability, with some increase in loan issuance, it favored stronger
BlackRock suggests viewing cash and short-term investments as a separate asset class that can deliver attractive risk-adjusted returns, stability, and liquidity in a fixed income portfolio. Effective segmentation strategies can help individual and institutional investors maximize returns on cash holdings.
This report discusses the importance of the Solvency II capital charge in portfolio construction and asset allocation for insurance companies. It compares different approaches to guide equity investors under Solvency II, including standard equity portfolios, long-term equity portfolios, and protected
This report highlights the evolution of Chinese assets and investors’ allocations to the region. Observation 1 shows that investors outside China have low allocations to the country, with variations depending on their location and investment strategy. Chinese equities and bonds
Global Asset Allocation for Q2 2023: Defensive Approach and Regional Bias toward Emerging Markets The economic cycle analysis suggests a contraction phase, leading to a more defensive approach with more cash and less risk. Within the Model Asset Allocation, the
Introduction: The case for fixed income is strong, but which segments of fixed income should investors consider? The answer depends on their specific needs and objectives. The global macro environment is becoming more supportive and valuations have improved considerably. From
In February, concerns about inflation caused a partial reversal of gains in the stock and bond markets, leading to a convergence between risky and risk-off assets. Strong US jobs and retail sales data, along with higher-than-expected inflation reports, led to
March 2023 2022 was certainly a tumultuous time for investors. The year was dominated by the Federal Reserve’s actions to fight inflation, particularly given the widespread perception earlier in the year that it was behind the curve. US Core inflation stood
The political realm continues to have an outsized influence on the retirement industry. Whether it's through the passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, or through the Department of Labor's (DOL) final letter on
Guy Haselmann, Head of Thought Leadership at MetLife Investment Management, recently sat down with Scott Pavlak, Head of Short Duration Fixed Income, to discuss interest rates and the investment landscape in short duration bonds. Guy: What a difference a year
MACRO ▪ The failures of SVB and Signature Bank reveal fragilities within the U.S. banking system, particularly as it pertains to regional insitutitions (see below). Yet, we believe the situation presents some positive takeaways from a bondholder perspective. The situation
Strategic Research Unit Summary 3 The strong start to 2023 for emerging market (EM) equities faded in February. The China re-opening rally lost steam, and was exacerbated by re-escalation in US-China tensions. Meanwhile, more resilient US macroeconomic data raised the
Uncertainty about the U.S. economic outlook has seen smaller companies bear the brunt of investor fears over the past year. Valuations have fallen to extreme lows, relative to larger companies, despite earnings holding up reasonably well. With the U.S. economy
The full reopening of Japanese borders has been a boon to businesses as the country comes to terms with the hard reality of co-existing with COVID. But with the world grappling with slowing growth and pressing concerns like geopolitical …
