What’s covered
The year ahead could be one of macro uncertainty, but also of potential opportunities, investment ideas and renewal in certain asset classes. Check out insights from our investment specialists from SLC Management, BGO, InfraRed and Crescent Capital.
A letter from Steve Peacher
Macroeconomic outlook
Policy uncertainty has been driven by potential tax cuts and lighter regulation on one hand and tough tariffs and immigration enforcement on the other.
Fixed income: investment grade
Robust supply and higher wages could apply upward pressures on inflation and on bond yields.
Fixed income: non-investment grade
Syndicated loans and CLO liabilities could hold some potential opportunities for attractive coupon income.
Private credit: investment grade
IG private credit markets have experienced robust volume growth heading into the new year.
Private credit: non-investment grade
Asset class poised to capture potential opportunities from strengthening U.S. middle market companies, increased M&A.
Real estate
Public REIT valuations, market volumes and certain fair value proxies suggest constructive conditions for the asset class.
Infrastructure
Megatrends continue to drive the outlook for infrastructure, as digitalization and decarbonization increasingly overlap.
Insurance asset management
Fixed income has offered attractive all-in yields, presenting strong return opportunities for insurers.
Retirement plan solutions
Longer-term bond yields rising could provide an attractive entry point for mid- to long-duration fixed income.
“Sources of uncertainty remain prevalent as we head deeper into the new year. These include those of a political nature, with an incoming U.S. administration raising expectations of both growth-friendly initiatives and the more sobering impact of tariff talk. And observers are watching central banks closely, for signs of the policymakers settling into a neutral rate or adopting a more stimulative mindset.”