Equity Markets
The S&P 500 surged by 10.4% in Q1, though it faced a 5.4% decline in early April due to inflation concerns and interest rate hikes. We scrutinize equity valuations with the S&P 500’s market-cap weighted P/E ratio at 19.8x, indicating slight overvaluation compared to historical norms.
Fixed Income Markets
The quarter was challenging for fixed-income assets, with significant declines in US Treasuries and corporate bonds. The analysis discusses the yield environment and bond market responses to economic indicators, noting current yields present attractive opportunities in safer fixed-income investment
Actionable Investment Opportunities
For certain clients we recommend increasing allocations to mid-term US government debt and engaging more in secondary private equity transactions. In private investments, we highlight the potential of senior direct lending and asset-backed credit solutions, particularly for middle-market borrowers,
Alternatives & Private Investments
Private equity reported a 6.2% rise YTD, reflecting solid performance despite broader market challenges. The discussion covers hedge funds, real estate, and private credit markets, highlighting evolving investment valuations and strategic entry points in the current economic climate.
Special Topic: Asset-Based Lending
Asset-based lending (ABL) is a crucial segment of the lending market, involving senior loans secured by tangible or financial assets, such as equipment, inventory, and accounts receivables, across various industries. Serving a broad range of borrowers, including corporations, individuals, and lendin
Actionable Investment Opportunities
In the current investment landscape, we spotlight the appeal of short-term US and Canadian government debt, advocating for maturities of two years or less with yields between 4.0%-5.0%, and suggesting an eye on 10-year US Treasuries should yields rise, offering potential for price appreciation. The
