Venture Capital Will Continue to Crush It
Globally, the venture capital (VC) industry will continue to evolve as capital floods in seeking compelling returns that can be had for those willing to wait.
December 2021
Insights
Government Bond Yields Are Likely to Rise as Central Banks Remove Support
Long-dated government bond yields rose in 2021 on strong economic growth and surging inflation. Central banks have maintained their easy money policies despite the rapid recovery in economic conditions, likely keeping yields lower than they would have been otherwise. This may soon change now that several major central banks are starting the process of dialing back support.
December 2021
Inflationary Pressures Will Moderate Some in Second Half
Consumer price inflation is above pre-pandemic trend in the United States and Europe, while producer prices are surging seemingly everywhere. Consistent with consensus forecasts, we expect mounting inflation pressures to ease by second half 2022 as demand for goods abates and supply constraints moderate.
December 2021
The Investment Portfolio’s Swiss Army Knife: Adding Private Credit to Portfolios for US Investors
We view private credit as an underused and effective tool that can help a broad array of investors meet their objectives.
November 2021
Overestimating Liquidity Needs Can Undercut the Return Potential of US Pension Plans
Many defined benefit plans sponsors may be denying themselves valuable opportunities to generate additional returns by overestimating their liquidity needs. Targeting a liquidity supply/demand ratio of 2x–3x can help portfolios tolerate periods of market stress.
November 2021
Is the United States Likely to Enter a Period of Stagflation?
No. While inflation could continue to run hotter than central banks expect, the US employment situation is improving, and economic growth is unlikely to stagnate.
November 2021
Has the Approaching Debt Default by Chinese Property Developer Evergrande Created Opportunities for Investors?
Yes. In recent weeks, several Chinese property developers have defaulted, and spreads on Chinese high-yield bonds have widened roughly 600 basis points (bps), taking their year-to-date loss to 18%.
October 2021
Investing for Climate Justice: An Intersectional Approach
Climate change and social inequality are two material and systemic risks facing the global economy and investment portfolios over the coming decades. In this paper, we demonstrate the relationship between climate change and social justice, highlight how investors can implement an intersectional approach to climate justice in their portfolios, and outline three steps investors should consider to help ensure our transition to a low-carbon economy is inclusive and just.
October 2021