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☆ Cash is king and it's not a good time to own financial assets, says strategist
▼ + stars: | 2022-10-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCash is king and it's not a good time to own financial assets, says strategistMehvish Ayub of State Street Global Advisors says there has been more volatility across all asset classes since the beginning of this year.

There were two main elements to the blowup in so-called Liability Driven Investment (LDI) strategies for British pension funds over the end of the third quarter. And yet it's private credit - ranging from direct corporate lending vehicles to leveraged loans - where arguably least is known. The rising rate environment alone has made some wonder how resilient private credit strategies given they don't have to mark to market regularly. To cope with illiquidity, the survey showed investors increasingly pairing private credit allocations with cash or more liquid core fixed income instruments. The boom in private credit assets has been spectacular - but booms don't last forever and shocks like the ones we've seen in recent weeks are at least a shot across the bow.

☆ Analysis: Goodbye, TINA: higher yields muddy outlook for struggling U.S. stocks
▼ + stars: | 2022-09-29 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +4 min

NEW YORK, Sept 29 (Reuters) - Soaring interest rates are providing investors with attractive alternatives to stocks, complicating the picture for equities in an already-vicious year. Register now for FREE unlimited access to Reuters.com RegisterThat calculus has drastically changed as the Fed hikes interest rates to stave off the worst inflation in decades, bolstering yields on everything from Treasuries to money markets. Money market funds took in $30 billion in the latest week, according to Refinitiv Lipper, while equity funds, taxable fixed income funds, and tax-exempt bond funds all had net redemptions. "We are definitely getting a resizing of that now.”Reuters GraphicsOf course, the alternatives to stocks are far from risk free. Still, the robust yields are likely to continue presenting a challenge to stocks, investors said.

☆ AllianceBernstein's CEO leans into private assets and ETFs as active managers face the worst market in decades
▼ + stars: | 2022-09-27 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +5 min

AB CEO Seth Bernstein spoke with Insider recently about the active asset manager's plans. Portfolio managers of active ETFs are actively overseeing a basket of securities, while typical passive ETFs track indices. Branded black water bottles promoting the new products read: "AB ETFs. Its first two ETFs are fixed income products — the AB Ultra Short Income ETF and the AB Tax-Aware Short Duration Municipal ETF. "We will continue to diversify the platform into private alts," Bernstein said during the Morgan Stanley conference in June.

REUTERS/Kim Kyung-Hoon/File PhotoNEW YORK/LONDON, Sept 25 (Reuters) - Global investors are preparing for more market mayhem after a monumental week that whipsawed asset prices around the world, as central banks and governments ramped up their fight against inflation. "It's hard to know what will break where, and when," said Mike Kelly, head of multi-asset at PineBridge Investments (US). "Currency exchange rates ... are now violent in their moves," said David Kotok, chairman and chief investment officer at Cumberland Advisors. But the murky outlook meant that they were still not cheap enough for some investors. "We are of the view that markets are still massively underestimating the global economic growth hit that is coming," he said.

REUTERS/Kim Kyung-Hoon/File PhotoNEW YORK/LONDON, Sept 25 (Reuters) - Global investors are preparing for more market mayhem after a monumental week that whipsawed asset prices around the world, as central banks and governments ramped up their fight against inflation. "It's hard to know what will break where, and when," said Mike Kelly, head of multi-asset at PineBridge Investments (US). "Currency exchange rates ... are now violent in their moves," said David Kotok, chairman and chief investment officer at Cumberland Advisors. The fallout from the hectic week exacerbated trends for stocks and bonds that have been in place all year, pushing down prices for both asset classes. "We are of the view that markets are still massively underestimating the global economic growth hit that is coming," he said.

☆ From the Fed to Europe's currency crisis, here's what's behind this selloff in financial markets
▼ + stars: | 2022-09-23 | by ( Patti Domm | In | ) www.cnbc.com time to read: +4 min

"It's clear the economy is slowing yet inflation is ramping and the central bank is compelled to address it. Fed Chairman Jerome Powell steadfastly warned the Fed will do what it needs to do to crush inflation. Arone said around the globe, the common threads are slowing economies and high inflation with central banks engaged to curb high prices. Strategists say the U.S. central bank particularly rattled markets by forecasting a new higher interest rate forecast, for the level where it believes it will stop hiking. The Fed's projected 4.6% high water rate for next year is considered to be its "terminal rate," or end rate.

☆ Stocks could continue skittish trading until interest rate move calms down
▼ + stars: | 2022-09-23 | by ( Patti Domm | In | ) www.cnbc.com time to read: +6 min

The S & P 500, Dow and Nasdaq were all down sharply for the week. The S & P was down 4.6%, ending the week at 3,693. Fed Vice Chair Lael Brainard , St. Louis Fed President James Bullard , San Francisco Fed President Mary Daly and Fed Governor Michelle Bowman are among the speakers. Other global central banks joined the Fed in raising rates, and interest rates around the world rose in tandem. If those levels break, the S & P could touch 3,385 before the selling is over, he said.

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