Corporate fundamentals: Opportunities and challenges within credit dispersion
Credit fundamentals continued to modestly weaken towards the end of 2023, with both leverage and interest coverage metrics trending towards long-term averages from the lows and highs respectively witnessed a year ago, as shown in Figures 1 and 2 below. Figure 1: Leverage increasing towards long-term averages Source: BofA, as at 31 December 2023. Figure […]
Asia ex-Japan Equity: Letter to Investors
Capital Constrained
Outlook brightens for emerging market debt
market snapshot
360°, Q1 2024:
Dispersion, disparity, duration
US SMID: Seven questions answered
How do you expect US small caps to fare in the year ahead? US small cap companies have derated relative to larger cap peers over the last couple of years, on fears over the broad economic outlook as the effects of monetary tightening flow through. The stellar performance of some mega cap tech stocks has […]
Where are the best opportunities at the short end of the curve?
Short Term Investments Committee
Stick or twist: The ECB stays tight-lipped on rates
market snapshot
How do Red Sea disruptions affect global supply chains?
Fast reading The Red Sea, connected to the Mediterranean by the 120-mile Suez Canal, is the primary maritime gateway for cargo flows from Asia to Europe and the Mediterranean. Container shipments operating in the Red Sea have dropped 75% as a result of the disruptions as vessels re-route around Africa. But longer routes can add […]
Where does Europe have the edge in technology?
This European tech sector has grown substantially. The software market, particularly, is an enabler for a lot of common applications. A number of highly differentiated companies operate this space – such as B2B software and enterprise applications firms – providing efficiencies to corporates. A number of European tech hubs are linked to universities. The current […]
Have higher rates made private equity trickier to do?
Low interest rates have helped the private equity industry to flourish over the last 15 years, providing ample capital to finance deals. But a lot has changed in the last two years as rates have surged. This shift, however, will affect different parts of the market in different ways. The thematically-driven and partnership-centric approach Federated […]
