According to fund managers, investors are pouring money back into U.S. corporate credit due to a combination of higher yields and attractive valuations. Salim Ramji, global head of exchange-traded funds and index investments at BlackRock told the Reuters Global Markets Forum, "We are at the beginning of a rotation as investors come back into credit. With the rapid move in front-end rates, the curve has repriced credit to attractive levels." This has benefited fixed-income ETFs such as the iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and the iShares High Yield Corporate Bond ETF (HYG), which are on track for quarterly gains in the fourth quarter after falling 20% and 14% respectively this year. Jim Leaviss, chief investment officer for public fixed income at M&G Investments added "We don't know exactly when the peak in inflation will be, but I think that's not a million miles away. If we're at this turning point then the entry-level you get by buying investment-grade credit in the (United) States looks really attractive." Ramji also said that “The jump in bond yields has also made corporate credit more attractive to investors looking for income after years of low-interest rates.”

Finsum:A combination of attractive valuations and higher yields has made U.S. corporate credit ETFs more enticing for investors. 

Over the past year, direct indexing has become a hot topic in the financial media. It’s hard not to see why with firms such as Fidelity and Vanguard launching direct indexing solutions. But direct indexing is not a new investment product. In fact, Natixis launched Active Index Advisors Strategies, its direct indexing business, in November 2002 with the AIA S&P 500® direct indexing strategy. The strategy has grown from $4 million in assets under management to nearly $8 billion today. Even more impressive is that the AIA S&P 500® strategy has tracked its benchmark index to within 12 basis points annualized since inception, outperforming on an after-tax basis by over 370 basis points on an average annualized basis. The strategy seeks to outperform on an after-tax basis while providing a pre-tax return similar to the S&P 500 Index. The firm’s direct indexing solutions provide fully customizable SMAs that can be customized for tax purposes, align with investor values such as ESG, or tilt towards factors.

Finsum:Amid a recent push by financial firms to launch their own direct indexing solutions, Natixis celebrates the 20th anniversary of its first direct indexing strategy. 

According to Wink’s Sales & Market Report, third-quarter sales of deferred annuities soared almost 21% over the prior-year quarter. Deferred annuities include variable annuities, structured annuities, indexed annuities, traditional fixed annuities, and multi-year guaranteed annuities (MYGA). Indexed annuities saw the largest gains. Sheryl Moore, CEO of Wink, Inc. and Moore Market Intelligence said that "It was a record-setting quarter for indexed annuity sales. In fact, 2022 will be a record year for indexed annuities as well." Total non-variable deferred annuity sales, which include indexed annuities, traditional fixed annuities, and MYGAs, came in at $48.8 billion for the quarter, up 67.1% compared to the prior year's quarter. However, variable deferred annuities, which include structured annuities and variable annuity product lines, did not see the same gains. While sales came in at $23.5 billion, that figure was down 10.8% compared to the previous quarter and down more than 23% compared to the same quarter last year. The No. 1 selling deferred annuity for the quarter was Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity. 

Finsum:With indexed annuity sales leading the way, total deferred annuity sales soared year over year. 

Thought Taylor Swift was all the rage? Okay; fair enough, especially if you ask Ticketmaster.

But she’s going to have to scoot over. In the financial industry, succession planning’s become all that and more, according to diamond-consultaants.com. Not only that, when it comes to the movement of advisors its propelled into a primary driver.

Programs like Merrill’s CTP (Client Transition Program), Morgan Stanley’s FAP (Former Advisor Program), and UBS’s ALFA (Aspiring Legacy Financial Advisor) Program, have been formulated by most wealth management firms. As a result, senior advisors can call it a day in place and the next gen, over time, can assume the reins of the business.

With succession planning, of course, employees are recruited and developed, according to corporatefinanceinstitute.com. The intent: to fill a role – a key one, at that – with an organization. What it does is rachet up the availability of employees who’ve not only been around the block, but competent, to boot. They’re up to the task of supplanting members of the old guard who’ve oh, say, left, retired or passed away.

Succession planning circumvents the potential of creating a hole in leadership in the aftermath of a retirement or departure of an organization’s senior officer.

Based on a recent report from the Alternative Credit Council, the private credit affiliate of the Alternative Investment Management Association, private credit managers remain bullish on their business prospects heading into the new year. In fact, more than 80 percent of global private credit managers are either bullish or cautiously optimistic about the market’s prospects over the next 12 months. The report was based on a survey of 54 private credit managers with $805 billion in combined assets. The optimism comes at a time when more investors are looking to increase their allocations to private credit next year. This was highlighted by a recent survey by Ernst & Young. According to the report, many private credit managers are taking advantage of this tailwind by expanding into new geographic locations. The report said, “Much of this growth is being led by the private equity market, which continues to spearhead private credit’s expansion into new markets. This development is likely to prove valuable for the European and Asian economies as they seek to diversify the sources of financing available to borrowers.”

Finsum:Due to an increase in interest from investors, private credit managers are optimistic about their business prospects heading into the new year.