The gradual exit of banks from business lending due to increased global financial regulation is driving attractive opportunities in private credit, but increased competition among non-bank lenders is causing looser covenants and higher leverage, according to Justin Ferrier, managing director, Asian private credit, at global asset manager BlackRock.
Dislocation: The End of Goldilocks Economy and The Rise of the Discontent
Political cohesion and stability can no longer be relied upon as politics becomes inward looking with everything from trade deals to central bank swap lines being renegotiated or cancelled altogether.
Liquidity in the financial system which has stemmed from easing monetary policy is already contracting. In a world where derivatives traverse borders, connecting financial systems like never before, a liquidity crisis presents an enormous tail risk in a leveraged world.
The era of global coordinated monetary policy since the GFC, especially with the three largest players (ECB, Fed, and BoJ), will be looked back upon with nostalgia by the current gaggle of central bankers who influence the halls of power. Policy will increasingly be driven with greater sensitivity to nationalist rather than international concerns.
If prior circumstances are not only not going to be repeated in the next decade but be profoundly different, how should asset owners invest and will active management once again be paramount?
“May you live in interesting times” - Chinese curse.
Please note attendance to this event is open to institutional investors, chairs of investment committees and specialist consultants.
The organisation of the conference was excellent and allowed for peopleMegan ChanSenior investment manager, unlisted assets and alternatives, State Super
to meet and mingle. The openness of the presenters and panel was great as well.
Content was very topical and speaker line-up was greatJohn LuceyChief investment officer, Avant
An opportunity to hear real, unfiltered perspectives from a range of participants.Tim MacreadyChief investment officer, Christian Super
Getting away and taking the time to think about and discuss someDenise AllenTrustee director, chair investment committee, AvSuper
of these issues with peers.
Australian power generation will continue to tilt towards renewables as more ageing coal-fired generators are taken offline and consumer and investor demand continues to grow.
Asset owners have been notoriously poor at drawing short-term investable insights from political and geopolitical events, but analysing long-term trends can be useful in helping investors prepare for future markets, experts say.