Columbia Threadneedle’s Al-Hussainy Sees “Exceptional” Opportunity In Investment-Grade Bonds
Columbia Threadneedle Global Rates Strategist Ed Al-Hussainy told Bloomberg that, even as spreads are compressing in quality, he’s still seeing exceptionally attractive valuation opportunity in investment grade credit bonds at the short end of the curve. That’s on top of the all in yields that are around 5%.
Morgan Stanley’s Chief US Equity Strategist Says Valuations Still Too High
Morgan Stanley Chief US Equity Strategist and CIO Mike Wilson, thinks that equity risk premiums are not factoring in growth concerns tied to a slowing economy, which in light of the recent bank collapses has only grown.
iCapital’s Amoroso Sees Systemic Risk In US Banking
iCapital Chief Investment Strategist Anastasia Amoroso told Bloomberg News that the collapse of Silicon Valley Bank and Signature Bank were not isolated incidents and signal risk in the wider the US banking system.
BlackRock CEO Fink: Politicians Making ESG Personal
BlackRock and its Chief Executive Officer Larry Fink, have become the focal point for politicians in red states demonizing the Asset Manager for being too green. They’ve even gone so far as divesting billions of dollars and making it illegal to invest with the firm.
Take The US2Y “Risk” Says Hugh Hendry
Hugh Hendry, founder of hedge fund firm Eclectica Asset Management, says he's putting his money on the front end of the Treasury curve as it’s showing some of the highest yields seen in years. Asked where he would hide his money from the current market volatility and risk, he’s all about the US 2 Year Treasuries.
BlackRock’s CIO Says Paradigm Has Changed
As markets react to the news of Silicon Valley Bank’s collapse, BlackRock’s CIO, Rick Rieder, says the economy is still in pretty good shape, but the stickiness of inflation has changed the macroeconomic paradigm and as a result their investment strategy.
Apollo’s CEO Says Economy Is In A“Non-Recession, Recession”
This is your market minute while others are trying to figure out if the U S economy is in a recession or not. Apollo Global Management, co-founder and chief executive officer, Mark Rowan thinks that we're in a non-recession recession. Rowan says the unprecedented $8 trillion economic stimulus has resulted in a historically tight labor market even as the economy slows and asset valuations are falling, all of which should be positively correlated. I think we're in a no-landing or as I've been jokingly saying, I think we're having a non-recession, recession. And what I mean by that is you think about what happened in the US, we printed $8 trillion. Are we surprised by what happened? We should be, everything went up into the right last year, we started to withdraw some of that stimulus, and low and behold things went down but everyone who wants a job has a job. Unemployment is at record lows. The last cycle was about even lower ends of the employment spectrum, the restaurant and hospitality. And so when I say no recession, recession, those who are in asset markets are in financial markets, it feels like a recession because everything is down. But for the vast majority of certainly Americans, but also around the world, people have jobs and they're spending.
Summers Says No Systemic Banking Risk
Larry Summers was not surprised by the bank run and subsequent shuttering experienced by Silicon Valley Bank, but does not see any systemic risk to the banking system, as long as depositors can make withdrawals.
Are US Investors Overlooking Foreign Opportunities?
As investors look for opportunities in the current market environment, many have followed the flight to safety crowd, but Research Affiliates Founder and Chairman Rob Arnott, thinks that US stocks are overpriced and investors are overlooking opportunities in foreign equities.
Nuveen’s Global Fixed Income CIO Sees Rocky Road Ahead
Many investors hoped the new year marked a new chapter in the inflation story. Nuveen Global Fixed Income CIO Anders Persson thinks it’s going to be a rocky road until the second half of 2023.
Jan. PPI Up, BP Scraps Carbon Emissions Target, & Most M&A and LBO Miss Early EBITDA Targets
The Bureau of Labor and Statistics' January PPI print was the highest since June 2023; BP reported a company record $27.7 billion in profits in 2022 and also said it would be lowering it’s carbon reduction goals; and a S&P Global Ratings study found that 80% of companies that are part of a M&A or LBO transaction miss their EBITDA targets in their first year.
Are Markets Fighting The Fed?
There are several sayings on Wall Street. One of them is “Don’t fight the Fed”, but markets seem to be doing exactly that. Morgan Stanley Managing Director, Lisa Shalett believes the US equity market is fighting the Fed, ignoring leading economic indicators, and that could mean pain for overly optimistic positions down the road.