Morgan Stanley Investment Management

What's driving the markets? Jim Caron shares on his podcast. Listen now: https://mgstn.ly/3YqBbAE

Most central banks are lowering policy rates, but the pace and magnitude varies by market. Our Broad Markets Fixed Income team explains what the variable policy paths could mean for fixed income investing ahead. https://lnkd.in/e238C47z

Each edition of the BEAT has new market insights. Explore investment ideas—read this month’s issue: https://mgstn.ly/4hdAIdB

Despite challenges, small emerging and frontier market countries like Argentina and Pakistan are bouncing back with strong earnings, outpacing the S&P and MSCI EM index. Amy Oldenburg, Head of Emerging Markets Equity highlights a recent report by Steven Quattry explaining why the case for investing in these markets has never been stronger. https://mgstn.ly/3A9jygs

Morgan Stanley Infrastructure Partners is pleased to partner with GI Partners by making this strategic investment to help strengthen Flexential’s position to meet increasing demand for next-generation data center infrastructure solutions.

Morgan Stanley Investment Management announced it has closed North Haven Tactical Value (NHTV) II Fund and affiliated funds at approximately $2 billion of committed capital, representing a nearly 50 percent increase over the predecessor fund NHTV I. The Fund seeks to provide credit, hybrid and non-control equity investments that are long-term and often illiquid in high-quality companies across sectors and geographies. See the full release here: https://mgstn.ly/3Yf0R2T

Is market optimism about rates too high? Find out why high volatility potential and tight spreads are making us choosier about bonds. https://mgstn.ly/3A0AQwn

How has the hedge fund industry changed over the past two decades and how is the landscape shifting today? Mark van der Zwan, Chief Investment Officer of our Hedge Fund team, joins Resonanz podcast to discuss. Listen now: https://mgstn.ly/3A09UNe

“Measuring the Moat” by Consilient Research is an indispensable resource to guide analysis of a company’s strategy. Long-term investors know this is the single most important part of their process. https://mgstn.ly/4dUCugK

#AltsInFocus Does the reduction in interest rates mark the bottom for commercial real estate values? Private real estate values have fallen meaningfully by ~25% since the peak in 2022. The pace of value depreciation has slowed significantly in recent quarters and has been more concentrated in certain markets and asset types. Additionally, transaction market indices (e.g., Greenstreet), show the market bottomed late last year, recovering by 3-5% since, led by the industrial and apartment sectors. The Federal Reserve’s interest rate policy pivot is expected to provide more stability for real estate values and yields, and potentially lead to appreciation for higher quality assets that might benefit from outsized tenant and investor demand. This should in turn fuel more capital flows and investment activity. Lower interest rates and the lag between transaction and appraisal indices suggests that core real estate should be forming a bottom and begin to appreciate later this year and next year, for preferred sectors and assets. It takes time for appraiser sentiment to shift and reflect market transactional evidence, which is one reason real estate tends to outperform on the other side of a price correction.