As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.
December 2020
Interest in China’s onshore bond market has been rising steadily since the market was thrown open to foreign investors. Yet foreign holdings remain relatively low. We think the market warrants further attention from global investors, given Chinese bonds continue to offer higher yields and lower correlations than those found in other major bond markets, with the potential to bring portfolio diversification benefits.
November 2020
As many had expected, the US presidential election turned into more of a process than an event. Whatever the outcome, history has shown that markets are fairly agnostic to which political party holds power in the United States.
November 2020
For many US pension plan sponsors, the déjà vu of falling discount rates and volatile equity markets again raises the question of how best to hedge pension liabilities, if at all. The issue of liability hedging is especially pertinent in today’s complex and asymmetrical interest rate environment.
October 2020
With the initial chaos of the COVID-19 market dislocation behind us but uncertainty still ahead, now is the time to refocus and potentially recalibrate core tenets of pension plan management. In this video series, we share our recommendations on how to address these challenges.
October 2020
The current health crisis is creating extraordinary financial disruptions for nonprofit enterprises, leading stakeholders to ask if the endowment can come to the rescue of revenue shortfalls and often growing costs. How should an institution evaluate this, and what are the long-term implications of boosting spending beyond policy levels? First, we consider whether it is […]
October 2020
Yes, but the opportunity set is currently limited. To date, the large amount of government stimulus and lax credit enforcements, the differentiated impact of COVID-19 on real estate sectors, and the challenges associated with valuing assets have worked to keep broad-based distress at bay for now.
October 2020
Nonprofit institutions have not been spared from the impact of COVID-19. In June 2020, when many endowed institutions were completing fiscal year 2020 and on the brink of a new fiscal year, we issued a survey that focused on endowment spending and other sources of liquidity for these institutions.
October 2020