Clarion Capital Partners’ Post

🔁 While the directional path of interest rates may be somewhat anticipated, the timing has been less certain. Discerning investors look for opportunities—like CLO Equity—that may be resilient in a fluid rate environment. 📘 Our latest blog delves into the world of CLO Equity, where higher yields and excess spread may provide a solution for investors in a changing rate environment. "Why CLO Equity Investors May Have an Edge in a Changing Interest Rate Environment" unpacks: ➡️ Why excess spread—not rates—drive CLO Equity returns. ➡️ How inherent leverage may structurally enhance performance. ➡️ The importance of active management in navigating credit risk and optimizing results. Every basis point and percentage point can matter. Understanding CLO Equity could open a new way to potentially differentiate your portfolio and solve for interest rate volatility. 👉 For expert insights into CLO Equity, access our full article here: https://hubs.ly/Q02sqcQk0 #CLOEquity #InterestRates #InvestmentStrategy #RiskManagement #FinancialEducation

🔁 While the directional path of interest rates may be somewhat anticipated, the timing has been less certain. Discerning investors look for opportunities—like CLO Equity—that may be resilient in a fluid rate environment. 📘 Our latest blog delves into the world of CLO Equity, where higher yields and excess spread may provide a solution for investors in a changing rate environment. "Why CLO Equity Investors May Have an Edge in a Changing Interest Rate Environment" unpacks: ➡️ Why excess spread—not rates—drive CLO Equity returns. ➡️ How inherent leverage may structurally enhance performance. ➡️ The importance of active management in navigating credit risk and optimizing results. Every basis point and percentage point can matter. Understanding CLO Equity could open a new way to potentially differentiate your portfolio and solve for interest rate volatility. 👉 For expert insights into CLO Equity, access our full article here: https://hubs.ly/Q02sqmfL0 #CLOEquity #InterestRates #InvestmentStrategy #RiskManagement #FinancialEducation

Higher-for-longer interest rates don't need not be a deterrent for fixed income investing. That's the view of J.P. Morgan Asset Management, who, in their fixed income outlook, explain why they believe the prospects for bonds might still be positive despite a backdrop of higher rates. Find out more: https://lnkd.in/e_JRjbyS

Historical performance of federal funds interest rate cycle peaks could help investors decide when to reinvest cash according to Terry Davis, Director of Investment Solutions and Andrew Wick, CFA, Lead Analyst, Portfolio Construction Solutions at T. Rowe Price. 🔗 Get the full scoop on Investment IQ here: https://bit.ly/49phSvf #portfoliomanagement #interestrates #financialservices #investmentnews #investmentiq

📈 Don't miss the upcoming webinar, "Achieving the Right Fixed Income Mix," on 16 October from 16:30-17:15 CEST Explore the current #bondmarket landscape and its implications for investment strategies. After the upheaval in the bond market over a possible "no landing" scenario the market has adapted very quickly. But what now ? Hear insights from: - Andrew Jackson, Head Fixed Income - Eoin Walsh, Partner and Portfolio Manager, TwentyFour Asset Management Get answers to crucial questions about monetary policy, interest rates, and preparing for market shifts. ➡️Register now: https://bit.ly/4dzX7yQ #FixedIncome

Below, we review the five surveys from late 2023 and early 2024 that we believe provide the some of the best barometers—so far—on investors’ asset allocation expectations. There is a clear appetite for more conservative asset classes like IG bonds, private infrastructure and credit. Less concensus on equities and real estate...!

💡 Understanding Dynamic Bond Funds: Is This the Right Investment for You? Dynamic Bond Funds offer a flexible approach to navigating interest rate changes and market volatility, making them an attractive option for many investors. Here’s why they could be a valuable addition to your portfolio: How They Work: Fund managers actively adjust the portfolio to respond to interest rate movements. Who Should Invest: Ideal for those with a moderate risk appetite, seeking long-term growth and stability. Why Consider Them: Great for diversifying in uncertain markets and aiming for consistent returns over time. 📈 Ready to explore how Dynamic Bond Funds fit into your strategy? Reach out today to learn more! 🔗 Contact us: 📞 +91 76960 92836 📧 bansalraj2k@gmail.com #DynamicBondFunds #InvestmentStrategy #PortfolioDiversification #FinancialPlanning #WealthWisdom #RBWealthWisdom #BondFunds #SmartInvesting

When we see potential clients come to our firm for a consultation and we see they have a 10% to maybe 30% allocation of bonds, I just scratch my head and wonder what the broker was thinking. Maybe they weren’t. Even the Bond King, Bill Gross, who managed the PIMCO Total Return Fund and who was largely responsible for bringing the investment firm PIMCO from assets under management of $12 million to around $2 trillion has said he now dislikes bonds and is investing money in other areas. He had some of the best returns of bond fund managers, but it came at time of declining interest rates from 1981 to 2020 that is now over. With long term interest rates at current levels, I believe the best return that investors could hope for is probably the coupon rate which on a 10 year treasury will be somewhere around 4.5%. This will not only hurt bonds, I believe it will also lead to disappointing returns in the old asset allocation model of 60% in equities and 40% in bonds over the next five to ten years. So if your broker or advisor has part of your money in bonds, you may want to ask why. I would say be prepared for the weak answer of something to do with asset allocation or that it has worked in the past. In other words, they are taking the easy way out rather than doing some hard research for your portfolio going forward. #bondallocation #broker #investmentfirm #bondking #billgross #pimco #investing #investors #interestrates #inflation #economy #assetallocation

When we see potential clients come to our firm for a consultation and we see they have a 10% to maybe 30% allocation of bonds, I just scratch my head and wonder what the broker was thinking. Maybe they weren’t. Even the Bond King, Bill Gross, who managed the PIMCO Total Return Fund and who was largely responsible for bringing the investment firm PIMCO from assets under management of $12 million to around $2 trillion has said he now dislikes bonds and is investing money in other areas. He had some of the best returns of bond fund managers, but it came at time of declining interest rates from 1981 to 2020 that is now over. With long term interest rates at current levels, I believe the best return that investors could hope for is probably the coupon rate which on a 10 year treasury will be somewhere around 4.5%. This will not only hurt bonds, I believe it will also lead to disappointing returns in the old asset allocation model of 60% in equities and 40% in bonds over the next five to ten years. So if your broker or advisor has part of your money in bonds, you may want to ask why. I would say be prepared for the weak answer of something to do with asset allocation or that it has worked in the past. In other words, they are taking the easy way out rather than doing some hard research for your portfolio going forward. #bondallocation #broker #investmentfirm #bondking #billgross #pimco #investing #investors #interestrates #inflation #economy #assetallocation

Midweek Market Insight: The booming private credit market, once a $1.5 trillion stronghold on Wall Street, is encountering some significant headwinds. While the sector faces challenges, it's essential for businesses and investors to be prepared for a potential distress cycle. Whether through additional financial support or considering ownership, adaptability is key in addressing the complex issues emerging in private lending. Read more. https://bit.ly/402aouP