Displaying items by tag: alternatives

Bonds and equities are more correlated than ever and on top of that there isn’t any yield in the bond market these days due to the trillions in QE. Investors are now searching for an uncorrelated hedge to what looks like a looming equity bubble, and private credit markets are giving investors an alternative. High fees, opaque transactions, illiquid markets, and locked up finances are downsizing private credit but more companies are searching for financing partnerships in private markets. Middleman companies like Blackstone and Carlyle Tactical Private Credit can match companies in transactions that wouldn’t be possible in public markets and generate yield that wouldn’t normally be possible. In order to meet the rising demand private creditors are pitching to larger companies that could have access to the public bond market and giving persuasive pitches.

FINSUM: Private credit is the most enticing alternative to the volatile bond market. 

Fine wine’s track record of low volatility and low correlation to equity markets make it...See More

Bitcoin is the most polarizing alternative investment by a wide margin and some say the slowing is natural, and the bull run is far from over. However, world leaders are singing a different tune. Swiss Bank Chair Alex Webber was the latest figure to speak out against the digital currency. While he showed appreciation for the underlying tech he said there was no chance that they would survive to upend the global payments structure. This was unwelcome commentary from bitcoin investors who saw prices fall severely in the last week. Additionally, China has targeted bitcoin again with shadow regulation and is the key driver in the price movements.

FINSUM: The biggest threat to bitcoin will always be regulation, particularly because its largest value as an asset class is currency conversion, particularly from developing nations.

The new age gold rush had investors and hedge funds sprinting to the euro area investing in the carbon market where prices doubled last year, but hedge funds are betting California is the big break. If the U.S. is serious about its climate aspirations then the price of carbon will have to increase and California is already a leading collector in the tax of carbon. There has already been an 85% increase in the price of carbon per ton this year stateside and those tax dollars are funding municipality-related climate initiatives such as wildfire prevention. However, the carbon taxes come at a cost. The higher built-in tax drives up consumer goods prices when inflation is already on the minds of every American. Overall investors like Blackstone see gains coming.

FINSUM: In the long-term, this could be another major global financial market that is centered in the US.

(New York)

Residential real estate is one of the most popular alternative investments for Americans…see the full story on our partner Magnifi’s site