Infrastructure debt has become an increasingly prominent component of many portfolios. SLC Management takes a deeper look into the market forces, potential benefits and outlooks driving this investment universe.
2023 Global Investment Outlook
January 31, 2023
We are pleased to present SLC Management’s investment outlook for 2023. This report reflects the diverse viewpoints of our investment teams and solutions providers, with analyses of public and private fixed income, real estate, infrastructure, insurance asset management and retirement plans.
Watch the replay of our Global Investment Outlook webinar
Our investment professionals across SLC Management, BentallGreenOak, InfraRed and Crescent Capital provide invaluable insights into what lies ahead for traditional and alternative investments, as well as for the global economy. Panel discussion followed by Q&A.
Read full report
What’s covered
Following a challenging 2022, our investment professionals across SLC Management, BentallGreenOak, InfraRed and Crescent Capital provide invaluable insights into what lies ahead for traditional and alternative investments, as well as for the global economy.
A letter from Steve Peacher
Steve Peacher
Executive Chair, SLC Management
“The year ahead will not be without its risks, from central banks responding to data surprises, to liquidity concerns in some asset classes, to possible economic contractions more serious than forecast. This underscores the importance of perspective and insight, which can help us see beyond near-term worries and focus on the historical resilience of financial markets.”
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:
Movements in the Canada yield curve suggest investor confidence that inflation has been contained, though current expectation levels might be overly optimistic.
Infrastructure:
Amid the various risks and opportunities present in the asset class, the ongoing movement toward global sustainability represents a strong secular theme favoring green infrastructure.
Fixed income: below investment grade:
With increased default rates already priced into markets, there may be attractive entry points in below-investment grade bonds in 2023.
Insurance asset management:
Institutional investors are in a rare position to take advantage of much improved core yields, with expectations that credit spreads will widen as 2023 progresses.
Private credit: investment grade:
Volatility is expected to continue into 2023, but the deal pipeline may be building up, driven in part by issuers who remained on the sidelines in 2022 coming back into the market.
Retirement plan solutions:
Funded status levels for defined benefit plans improved in 2022 amid the past year’s volatility, which has driven de-risking activity among plan sponsors.
Private credit: below investment grade:
The macroeconomic and policy backdrop has resulted in a shift in the market favoring lenders over borrowers, providing opportunities for investors to benefit from higher yields on more attractive terms.
