November 14, 2019 Low Rates May Be Worrying You, But Private Markets Use Them To Their Advantage by Alexander Chaloff There are currently 15 countries with interest rates lower than 1%, and more than half of those are negative. In the US, despite 10-year Treasury yields moving 40 bps higher since the beginning of September, rates are still historically low. And if the economy slows more than expected, they may move down again. What could these low interest rates mean for your investments? Alternatives, Wealth Planning Likes 0 SHARE Bookmarks
October 09, 2019 Can Alternative Investments Provide a Boost for Nonprofits? by Clare Golla Over the last decade, investment policies reflected asset allocation rules written at a time when stock returns were strong, and volatility and inflation were unusually low. But geopolitical uncertainty and rising inflation can cause markets to become more volatile. And that means the asset allocations that worked well during the last decade probably won’t produce the same results in the next one. Alternatives, Asset Allocation, Endowments & Foundations Likes 0 SHARE Bookmarks
September 25, 2019 Sizing an Alternatives Allocation Starts with Spending by Alexander Chaloff One of the key determinants for selecting the right alternatives allocation is spending. Most alternative assets are illiquid, which means they cannot be readily sold for cash. Because of this characteristic, investors need to select an alternatives allocation that does not put their spending at risk. Alternatives, Asset Allocation, Wealth Planning Likes 0 SHARE Bookmarks
August 14, 2019 Don’t Fear Illiquidity (Embrace It!) by Alexander Chaloff Illiquid alternatives are investments that are not easily traded or exchanged and where investors do not have access to their capital for years. In fact, some alternatives hold investors’ capital for as long as a decade. That’s one of the reasons some investors shy away from them. The long lock-up worries investors, especially when the markets turn down. But is that fear justified? In a word: No. Illiquidity should not be feared—for three reasons. Alternatives, Asset Allocation Likes 0 SHARE Bookmarks
June 12, 2019 The Staying Power of Commercial Real Estate by Greg Young The US is approaching the longest economic recovery in history, and some investors are worried that a slowdown is on the horizon and the commercial real estate cycle is nearing an end. We agree that an economic slowdown will happen at some point, but think that it matters less for long-term investors in private commercial real estate. Alternatives, Real Estate Likes 0 SHARE Bookmarks
May 21, 2019 US Housing Reform and the Future of CRTs by Michael S. Canter, Janaki Rao Credit risk-transfer securities have made the US mortgage market safer by shifting default risk from taxpayers to private investors. The latest attempt to overhaul the housing finance system isn’t likely to change that. Alternatives, Fixed Income, Policy & Regulation Likes 0 SHARE Bookmarks
March 20, 2019 A Framework for Allocating to Illiquid Investments by Alexander Chaloff The traditional asset allocation model considers only one dimension— the type of asset. For years, this model was effective, before a proliferation of alternative products widened the investment choice, and advanced technology allowed for more precise models. Today, there’s a better way. Alternatives, Asset Allocation Likes 0 SHARE Bookmarks
February 21, 2019 Enhancing Your Investment Portfolio with Private Equity by Alexander Chaloff Most investors try to diversify their investments—by allocating money to several asset classes like stocks and bonds, in various geographies—the US or foreign markets, for example—or by choosing stocks in many industries. Another way is to seek investments outside the public markets. Private equity is one such place. Alternatives, Wealth Planning Likes 0 SHARE Bookmarks
January 11, 2019 2018 Lessons Learned: Tenets of Investing Ring True, Time and Again by Kathleen M. Fisher The beginning of the year is often the time when investment strategists opine on the outlook for the year ahead. Although 2018 proved, once again, how futile such short-term forecasts can be, last year’s markets affirmed some of the evergreen tenets of investing. Alternatives, Equities, Fixed Income, Wealth Planning Likes 1 SHARE Bookmarks
December 17, 2018 Is the US Housing Market Headed for a Correction? by Michael S. Canter, Janaki Rao, Monika Carlson The median price of a US single-family home has risen just over 40% since the last housing-market crash. While newspaper headlines may put readers on edge, our analysis indicates a gradual slowdown, not a bursting bubble—in most regions. Alternatives, Fixed Income, Rising Rates Likes 0 SHARE Bookmarks
February 13, 2018 Why the US Government Should Guarantee Your Mortgages by Michael S. Canter, Janaki Rao Congress may finally be inching toward an overhaul of the US housing finance system. That’s good. But getting reform right is more important than getting it done. To us, that means ensuring the government retains a clearly defined role in the mortgage market. Alternatives, Fixed Income, Policy & Regulation Likes 1 SHARE Bookmarks
January 17, 2018 Will Tax Reform Derail CRTs? Don’t Bet on It by Michael S. Canter, Monika Carlson, Janaki Rao Investors seeking floating interest-rate exposure and high yields are increasingly turning to credit risk–transfer securities (CRTs), a fairly new type of mortgage-backed bond. But could US tax-code changes hurt the housing market and, by extension, CRTs? We don’t think so. Alternatives, Fixed Income Likes 0 SHARE Bookmarks
September 07, 2017 Positive Developments for Hedge Funds by Stuart Davies, Vikas Kapoor Widespread criticism of the hedge-fund industry has spurred positive changes, the market environment is improving, and new ways of achieving some return streams have become available. Alternatives, Wealth Management, Wealth Planning Likes 2 SHARE Bookmarks