Adding credit exposure to defined contribution (DC) defaults via an unconstrained multi-asset credit fund has the potential to enhance risk-adjusted returns and improve outcomes for DC plan members.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone’s relatively better balance of payments position.
Implications for insurance capital requirements
EURUSD should be rangebound
Dovish central banks have the potential to extend the cycle—and therefore the positive environment for credit. Despite the strong performance year to date, we see opportunities for selective investors.
We further discuss how institutional investors can protect their portfolios from late cycle headwinds and rising volatility so that they can be positioned for long-term success.
What will higher interest rates mean for real estate? In the short term, the impact on real estate capitalization rates is likely to be minimal. It’s important to separate the impact of higher interest rates into short- and long-term effects.
With sentiment showing signs of improvement following recent macro data releases, is now the right time to build risk in portfolios?