This is Part 3 of Financial Advisor IQ’s five-part special report on fixed income. – by Ellen Sheng In the span of a decade, the private debt market has grown to nearly $1 trillion in assets under management, up from $341 billion at the end of 2011, according to alternatives-focused research and data provider Preqin. For advisors looking for yield in …
SPAC-tactular Frothy Markets & NFTs “It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment.” – SEC Announcement, November 2017 Despite the best efforts of the Securities and Exchange Commission in 2017 to draw people’s attention to the folly of investing in an asset endorsed by …
In 2015, the Swiss financial services firm UBS conducted over 7,000 interviews with retail investors in an effort to establish what motivated them. Their findings from the interviews were the inspiration behind a global advertising campaign to show how UBS had become more client-focused than ever. The campaign featured actors playing the roles of people at different stages of their …
The first known example of an advertisement for laundry detergent was in 1876. Henkel and Company – these days known as the parent company of Persil – took out a full-page advertisement in a Cologne newspaper, informing readers about how laundry detergent would make their linen whiter than mere soap ever could. Nearly 150 years later, in great regularity, someone …
Making the distinction It pays to know the history of an asset. This will allow you to see past the glossy marketing pitch for the latest ‘opportunity fund.’ Private equity companies will be happy to call it a distressed asset and let you think that they acquired it last month. If they dragged the company into this mess, what are …
“I would never buy debt at below zero. Never, not at below zero…not in my entire life. I would do anything before I’d buy debt at negative rates.” – Jamie Dimon, Address to Institute of International Finance, October 2019 Over the last several years, we have recognized what has been going on with negative or near negative interest rates in …
“Be fearful when others are greedy and be greedy when others are fearful.” – Warren Buffett, Annual letter to Berkshire Hathaway Investors What now? Leon Black might be the patron saint of private lenders. As analysts have scrambled to assess the damage wrought by months of lockdowns across the world, the leader of the world’s largest private lender was on …
What now? “Since Apollo was founded in 1990, we have been through four downturns and 40 per cent of all our money has been invested in down cycles, when everyone else shut down.” – Leon Black, Founder of Apollo Global Management Leon Black might be the patron saint of private lenders. As analysts have scrambled to assess the damage wrought …
In uncertain times, plans are worthless: Experience is what counts Everyone’s got a plan until they’re punched in the face. In 2020, the plan was to enjoy a return to relative growth and stability. Goldman Sachs predicted global GDP growth of 3.4%, driven by more favorable financial conditions, improved US-China trade relations and reduced uncertainty surrounding Brexit. Unemployment, the investment …
March 30, 2020 Direct lenders around the world are talking with borrowers about easing interest payments, waiving penalties and relaxing covenants as they assess the growing damage to their portfolios caused by the coronavirus pandemic. The discussions are occurring as the global turmoil seeps into the $812 billion private market. The crisis is one of the first major tests for the asset …
