Steve Peacher
President
SLC Management
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.
A letter from Steve Peacher
Macroeconomic outlook:
Major central banks are facing the challenge of moderating inflation without igniting a severe recession.
Fixed income: investment grade:
It looks like it’s “risk-on” for the short term, but the longer-term outlook could be clouded by inflation, policy uncertainty.
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
Private credit: investment grade:
Continued resilience in private credit could yield attractive investment opportunities for investors with a long-term horizon.
Private credit: below investment grade: A potential pickup in merger-and-acquisition volumes could lead to increased private credit-fueled buyouts and refinancings.
Real estate:
Market disruptions could eventually create opportunities among an increasing number of assets brought to market.
Infrastructure:
An even tighter focus on monetary policy, sustainability issues and general demand drivers could serve as catalysts for infrastructure investments.
Insurance asset management:
Higher yields that could last throughout 2023 may create a window of opportunity in fixed income for insurance investors.
Retirement plan solutions:
Increasing fixed income diversification has become a growing focus for plan sponsors.
