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...private credit manager Castlelake as the world’s second-largest alternative investment manager uses acquisitions to push further into lending and debt investments that are benefiting from higher interest rates...
...Speaking to me earlier this week, one senior executive at a premier US investment bank felt no need to cheer on this latest rally....
...Fink also said BlackRock was seeing “accelerating momentum” because it was winning new business from “marquee” clients for its technology, retirement and portfolio management services....
...JPMorgan estimates at least €4bn of the debt owed by two pivotal Signa subsidiaries is at floating rates....
...But now that central bank rates have climbed back to 5 per cent or more, it has lost its shine. This is the backdrop against which the BlackRock-GIP deal must be assessed....
...LDI funds can borrow cash at a lower interest rate using gilt repo than corporate bond repo....
...“The buzzword that is going through markets at the moment is divergence,” said Quentin Fitzsimmons, a senior portfolio manager at T Rowe Price. Read more, from the ever-industrious Mary McDougall....
...BlackRock to buy Global Infrastructure Partners for $12.5bn BlackRock chief executive Larry Fink has been searching for years for the right private markets partner to make his $10tn money manager as formidable...
...BlackRock’s change in allocations in its popular model portfolios led to a surge on the equity side as well, according to Morningstar analyst Ryan Jackson....
...“Growth in the US has been shown to be more resilient than in Europe,” said David Rogal, a portfolio manager at BlackRock....
...Peter Sleep, senior portfolio manager at 7 Investment Management, said overseas investors’ poor sentiment on China has been hiding some of the India success story....
...“The high interest rates have encouraged hot portfolio inflows which helped to support the currency and gave the central bank some firepower to intervene in the market,” said Bismarck Rewane, an economist...
...“We are seeing investors taking full duration risk in credit exposures,” he said, referring to investors’ desire to seek portfolios of bonds whose price is highly sensitive to interest rate changes....
...The long-term trend of clients consolidating more of their portfolios with BlackRock is only accelerating, and underlying business momentum remains strong.”...
...He prefers value stocks, which could benefit as we “return to a more normal inflation and interest rate environment”, and said financials are the largest position in his portfolios....
...That’s because both make floating-rate loans to (mostly) junk-rated companies that aren’t quite big enough to easily tap bond markets....
...That pushed the discount rate as high as 17 per cent, its widest since the financial crisis....
...“Treasury Floating rate notes carry only one week in duration and are essentially one of the highest yielding Treasury securities”....
...to put cash to work ahead of potential rate cuts”....
...“My thought is [the Fed will] probably cut interest rates at consecutive meetings, assuming the economy is doing well,” said David Rogal, a portfolio manager on the Total Return Fund at BlackRock....
...Roughly 40 per cent of debt on Russell 2000 balance sheets is short-term or floating rate, compared with about 9 per cent for S&P companies....
...And here’s what else I’m watching today: Monetary policy: The Bank of Japan begins a two-day interest rate-setting meeting. Trump trial: The E....
...Ann-Katrin Petersen at the BlackRock Investment Institute said inflation was likely to remain sticky enough to avoid a return to the negative rates the ECB had in place two years ago....
...“The investor enthusiasm that we saw very evidently in markets in March was captured in ETF flows,” said Laura Cooper, senior macro strategist for iShares in the Emea region at BlackRock....
...Central banks in the US and Europe are nearing the end of their rate rise cycle, meaning the yen could start to strengthen from next year if the interest rate gap between Japan and the US narrows....
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