Robust issuance continued into Q3, reflecting solid supply–demand dynamics. As the IG private credit market grows, however, we take a closer look at the diverse array of origination channels in this investment universe, discussing the potential benefits, drawbacks and possible misconceptions surrounding these sources of deal flow.
2023 Mid-year Global Investment Outlook
August 01, 2023
Welcome to SLC Management’s investment outlook for mid-year 2023. In this report, our investment teams and solutions providers share their insights, analyses and perspectives on public and private fixed income, real estate, infrastructure, insurance asset management and retirement plans.
What’s covered
After a rebound in most financial markets in the first half of 2023, our investment specialists from SLC Management, BentallGreenOak, InfraRed and Crescent Capital look to what could be ahead for the global economy, and for traditional and alternative investments.
Steve Peacher
President, SLC Management
“Conditions at the beginning of this year presented considerable opportunities for fixed income investors to pick up yield, and a similarly fertile investment environment is expected to continue to some extent going forward. At the same time, investors searching for additional sources of yield are increasingly looking at non-traditional investments.”
Macroeconomic outlook:
Major central banks are facing the challenge of moderating inflation without igniting a severe recession.
Private credit: below investment grade:
A potential pickup in merger-and-acquisition volumes could lead to increased private credit-fueled buyouts and refinancings.
Fixed income: investment grade:
Robust economic indicators may have shifted policy expectations from the Bank of Canada.
Real estate:
Canadian housing market may be key to whether or not the domestic economy gets a soft landing.
Fixed income: below investment grade:
Examining the effect of past changes in policy direction of the U.S. Federal Reserve on high yield and bank loan assets.
Infrastructure:
An increased focus on monetary policy, sustainability issues and general demand drivers could serve as catalysts for infrastructure investments.
Private credit: investment grade:
Continued resilience in private credit could yield attractive investment opportunities for investors with a long-term horizon.
Insurance asset management:
Yield increases have shifted insurer asset allocations toward fixed income.
Retirement plan solutions:
Increasing fixed income diversification has become a growing focus for plan sponsors.
