There’s still ample opportunity for loans generate higher than historical average returns, with Invesco expecting outperformance over the next 6-12 months. And with a recession potentially on the horizon they come with downside protection included.
Inflation is in a transitory phase but the downward trend looks set to continue. Sovereign funds around the world are adjusting accordingly, with 5 major themes charting the course of institutional investors in the current climate.
“I believe inflation is largely in the rear view mirror, and the Fed will not be hiking again,” said Invesco’s chief global market strategist Kristina Hooper. And the trend could be a global one.
New data from bfinance and Invesco sees Australian investors and sovereign funds reducing exposure to growth assets in favour of private markets
Sovereign wealth funds have hit pause on their internalisation programs as they discover that they aren’t naturals at private markets investing. And inflation and geopolitics are driving allocations to a broad range of alternative assets.
Senior secured loans act as an important inflationary hedge in times of rising inflation according to the firm’s chief investment officer.
One part of the market that is benefitting from inflation and interest rate increases is private debt; senior secured loans, in particular, have returned 4.8 per cent over the past two years.
Like many people, Ashley O’Connor, head of investment strategy at Invesco Australia, did not exactly plan for the career he ultimately embarked upon. But some serendipity brought him to a role he truly values.
Debt assets may be de jour, but the income they produce is fraught with peril if it doesn’t include the kind of diversity senior secured loans provide.
Simple techniques like analogies and metaphors can help you connect with clients, but ‘storyselling’ needs to be simple and relatable.
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