As the U.S. financial system and broader economy swoon from fear of the damage that the coronavirus will leave in its wake, private equity deal flow will soon begin to feel the pinch. Although data for the first quarter of 2020 is not yet complete, indications are that deal flow has slowed based on the ... READ MORE >
Financial services
The coronavirus impact on the financial services sector
The spread of the coronavirus and its accompanying shock to the global economic system has spurred widespread fear within the financial services sector. The disruption has led senior leaders at financial services firms to ask some basic questions, from how do we keep our employees safe, to what does our ... READ MORE >
As leveraged loans rise, so do risks for middle market companies
A storm is brewing in the corporate debt market, and it has the potential to threaten the middle market. With the amount of easy capital surrounding this sector of the economy, midsize companies have bitten off more than they can chew if the business cycle were to hit the brakes. And with recent ... READ MORE >
As hedge funds struggle, money flows to limited stakes in private equity firms
Amid the soaring markets of the past few years, some in the asset management community have faced a conundrum. Investors have demanded better performance, but asset managers who pursue alternative strategies, like hedge funds, have struggled to keep up. The result is that many hedge funds have closed ... READ MORE >
As ESG accreditation evolves, don’t forget the Principles for Responsible Investment
As socially responsible investing has grown in recent years, so too have the number of organizations looking to create some sort of accreditation for investors. Groups like the Sustainable Accounting Standards Board, the Global Reporting Initiative and CDP Global are looking for ways to provide a sort ... READ MORE >
SEC brings clarity to accredited investors and family offices
Every four years, the Securities and Exchange Commission is required by the 2010 Dodd-Frank law to modify the rules protecting investors. The original protections were put in place in 1982, but with the relentless pace of change in innovation, technology and investment options, those rules may quickly ... READ MORE >
Private equity is booming. So why are fewer middle market launches planned for 2020?
These are heady times for the private equity industry. With interest rates low and doubts swirling about the bull market’s longevity – not to mention dreary returns in the competing hedge fund industry – investors are pouring cash into private equity funds. Indeed, there is more private equity capital ... READ MORE >
As the coronavirus spreads, bond markets take notice
For a while last year, it seemed that yields on U.S. Treasuries were on an upward path as trade tensions with China eased and recession fears calmed. But all that has changed as fears over the outbreak of the coronavirus in China have combined with moderated corporate earnings and continued delays over ... READ MORE >
Middle market hedge funds, facing a squeeze, look to AI and alternative data
Hedge funds appear vulnerable headed in to 2020. Portfolio gains have been sluggish, fees are at their lowest levels since tracking began, and 2019 ended a five-year period when investors pulled out more money than they invested in the industry. This all took place amid increased geopolitical risk ... READ MORE >
Declining demand for commercial loans points to continued uncertainty
Demand for commercial loans softened dramatically in the third quarter, as noted by both the Federal Reserve Bank of New York and Federal Deposit Insurance Corporation, signaling that businesses continue to be cautious about making capital investments amid a not-yet-signed trade deal with China and ... READ MORE >