Displaying items by tag: investors

According to the results of a recent survey, fixed-income investors want more ESG data than what is currently available. A survey of 111 senior buy-side fixed-income investors, which was conducted by analytics firm Coalition Greenwich, found that 90% believe ESG is important to decision-making, but only a third have fully integrated ESG into their risk analysis. The reason for the large difference is a lack of ESG data. Coalition Greenwich’s senior analyst Stephen Bruel stated “It boils down to risk management. If you don’t have reliable ESG data about an issuer or issuance, then it’s harder to calculate what the negative consequences might be.” More than half of the respondents said it was “important to incorporate ESG in fixed-income portfolios to perpetuate corporate values,” but there’s a “gap between where the survey participants want the industry to be and where it actually is.” Data was listed as the largest obstacle to achieving these ESG goals. The concerns about ESG data quality included greenwashing and inconsistent ratings. Essentially, if the data isn’t reliable, then quantifying risk becomes harder, which could open up investors to sizeable losses. This is especially true with the calculation of climate risk, which would certainly benefit from more data.

Finsum: Based on the results of a recent survey, fixed-income professionals believe ESG is important, but a lack of data is preventing more of them from implementing an ESG strategy.

Someone: please pass the Tylenol. Come to think of it, you might want to pop one yourself.  

Either way, fixed income investors thank you.

After all, their mantra this year…waiting…waiting…“pain to gain,” according to advisorperspective.com.

Feel free to dry swallow the thing.

Anyway, precedent making losses are making their mark in traditional fixed income benchmarks, opening the door to an environment that’s done anything but double clutch when it comes to investment grade, core fixed income dispensing yields in the mid single digits. 

And talk about bitter cocktails. The drop off in fixed income coupled with the turn south in equities has culminated in questions among investors associated with their bond portfolio. Down the road, what – if any – benefit bonds can yield.

In fact, fixed income’s enduring its nastiest year in a generation, according to investmentweek/co/uk. At the core of the sell off; ta da – the global government bond market.  

Now, with opportunities sneaking over the horizon, investors have a strategy for approaching the asset class, they told Investment Week.  

Taking, um, stock, of your portfolio holdings?

Hold on with both paws: with investors updating their economic outcome probabilities, volatility’s the byword for next year in the S&P 500, UBS Global Wealth Management recently said, according to markets.businessinsider.com.

"[Expect] more volatility and large market swings exacerbated by positioning as investors update their economic outcome probabilities in reaction to each new data point and Fed utterance," Jason Draho, head of Asset Allocation Americas at UBS Global Wealth Management, said in a note.

He noted that the S&P’s been marked this year by a "pendulum-like return pattern.” He added “large month-to-month swings could continue well into next year before the economy's eventual destination becomes clear."  

And if you thought the oil market’s were beyond the sticky fingers of volatility: ha!

As in think again.

After heading north on the tailwinds of a post lockdown spark in demand, crude climbed to an almost unprecedented high in the aftermath of the Ukraine invasion, according to currenciesdirect.com. Then, in light of the tumultuous global economy, drooped.

According to a recent survey of active retail investors conducted by Opinium on behalf of Lansons, educating affluent investors on alternatives could lead to huge inflows. Lansons, a leading independent reputation management consultancy, partnered with strategic insights agency Opinium to conduct a nationally representative survey of 1,832 Americans. The survey found that a majority of Americans are unfamiliar with digital platforms that offer access to alternatives. Eighty percent have either never heard of these platforms or don’t know much about them. However, educating these investors could be the key to unlocking massive inflows as investors are certainly open to investing in them. Based on the results of the survey, 20% of Americans would strongly consider investing in alternatives and 7 percent are already planning to do so. In addition, active investors would be willing to allocate 25% of their portfolios, on average, to alternatives. These figures represent more than $1.3 trillion in potential investment. In addition, the current market conditions could provide an opportunity for the industry to educate investors about alternatives as nearly half (47%) of the survey respondents expressed extreme concern about the impact of inflation on their investments. Alternatives such as gold and real estate are generally considered hedges against inflation.

Finsum:If a lack of knowledge on alternative investing could be remedied, alternatives could see massive inflows. 

According to the Wall Street Journal, investor home buying has fallen 30% over the past year due to high prices and rising interest rates. The Journal cited Redfin data that showed companies bought 66,000 homes across 40 markets in the third quarter of 2022, a 29% drop from the 94,000 homes bought during the same period last year. The declines come after a two-year period in which investors piled into the US housing market as the demand for suburban properties rose. While investors were buying one in every five homes at the start of the year, a combination of rising rates and elevated prices is driving the slowdown. The Federal Reserve tightened rates from near zero in March to a current range of 3.75% to 4%, which pushed mortgage rates higher and curbed demand. The interest rate hikes were in response to escalating inflation. In addition, house prices have remained the same in many areas of the market despite the fall in sales.

Finsum:Investor homebuying dropped 30% year over year due to a combination of rising rates and high home prices.