Government services businesses have weathered the COVID-19 storm better than many other industry verticals but have still grappled with their own uncertainties. These businesses navigated the start of pandemic recovery, shifting election expectations and a continuing resolution in the third quarter of 2020. Top executives in the government services space ... READ MORE >
Financial Services
Comprising everything from private equity firms to family offices, financiers are active participants in the middle market. They provide the vital capital infusions needed to take growth companies to the next level.
With added benefits, lenders stand ready to roll out more fiscal aid
Congress’ approval of another round of fiscal aid is providing a ray of hope for borrowers and customers of financial institutions as they look to move on from a difficult year. The legislation provides needed relief for the small businesses most affected by the downturn and customers of financial institutions. It also offers a host of benefits beyond the ... READ MORE >
Private equity firms pledge their support for Diversity in Action initiative
As investors demand greater accountability on diversity and inclusion efforts in the asset management industry, private equity firms are under pressure to change. Women in the alternative assets sector, for example, held only 11.9% of senior roles, according to a Preqin study released in February. Now, a recent initiative seeks to address that ... READ MORE >
CHART OF THE DAY: Diverging trend in consumer loan delinquencies and unemployment
Consumer loan delinquencies and unemployment rates have historically followed similar paths – either both increasing during times of stress, or both declining in periods of prosperity. But the pandemic has upended that coupling, as consumer loan delinquencies have trended down while unemployment has increased significantly. During the Great Recession ... READ MORE >
Private equity dealmaking surges, with gains in the middle market
After a quiet period set off by the coronavirus pandemic, private equity deal activity in the United States surged through mid-November as investment managers prepare for a possible tax policy change under President-elect Joe Biden. And the middle market has seen an uptick in deals. The overall surge has been striking, with the number of U.S. and ... READ MORE >
A Labor Department rule puts spotlight on ESG in retirement plans
As investors increasingly focus on environmental, social and governance issues in the corporate sector, an important question remains: What is the true purpose of ESG? Is it to drive returns, or to simultaneously do right by society? Along with that question has come concern over fiduciary responsibility. Do investors hold up their legal and ethical ... READ MORE >
Federal Reserve eases Main Street Lending Program terms to encourage participation
The Federal Reserve on Friday announced changes to the Main Street Lending Program intended to make financing more readily available to small and medium-size businesses struggling amid a resurgence of coronavirus cases. The changes come as negotiations over another round of fiscal aid drag on in Congress and as businesses face the prospect of ... READ MORE >
CHART OF THE DAY: The rise of the zombies
The cheap corporate financing and increasingly light debt covenants that have come with the accommodative monetary policy of recent months are starting to show up in S&P 500 Index companies. While investors have benefited from the rise in the equity markets, a number of these companies have fueled that growth by seeking out financing to cover daily ... READ MORE >
CHART OF THE DAY: Markets prepare for favorable clean energy policies
Joe Biden’s clean energy plan has recently been a point of focus. And the prospect of a Biden victory in the presidential election has spurred a rise in stocks set to benefit from his proposed $2 trillion package, which is meant to kick-start the nation’s economy toward net-zero carbon emissions by 2050. By contrast, returns for oil and gas producers are ... READ MORE >
CHART OF THE DAY: Hedge funds are faring well, but there is a range
Hedge funds are faring well after years of lackluster results, but the returns have not been uniformly strong. A closer look at the returns shows a range of results within strategies and even substrategies. For example, data from Hedge Fund Research’s subindices show that returns for the equity hedge strategy through September have ranged from as high at 17% ... READ MORE >