Chart of the week

Showing 13–18 insights out of 318 results
Sep 20, 2024
By Research
2 minute read
Chart of the week

New rate regime, same rate volatility?

Fed rate cuts have not appeared to end rate volatility. Treasury yields retraced their decline as markets digested a still data-dependent Fed.

Line chart showing the path of 2- and 10-year Treasury yields this week. Yields plunged immediately after the Fed announced the 50 basis point cut but retraced nearly all of the decline in the subsequent 24 hours as investors digested that the Fed’s data-driven approach and continued focus on inflation could prolong rate volatility.
Sep 13, 2024
By Research
2 minute read
Chart of the week

Credit quality comes into focus amid heightened volatility

High yield bonds have outperformed senior secured loans in recent months, given their more attractive duration profile and higher credit quality.

Column chart showing high yield bonds’ monthly out- or underperformance versus senior secured loans. Whereas loans outperformed through much of the past year, high yield bonds have outperformed each of the past four months as investors prepare for a rate cutting cycle and emphasize higher-quality credit amid signs of an economic slowdown.
Sep 6, 2024
By Research
2 minute read
Chart of the week

Middle market private equity outperforms amid elevated rates

Middle market private equity has outperformed mega cap PE amid the elevated rate environment since Q2 2022. It remains well-positioned today.

Column chart showing middle market private equity funds’ annual out- or underperformance each quarter since Q1 2019. Middle market PE funds notably outperformed after the Fed ended it’s zero interest-rate policy (ZIRP). This sector has historically shown less interest rate sensitivity and relied more on organic growth (improving earnings, growing margins, expanding product lines) to drive value creation than large- and mega cap funds.
Aug 30, 2024
By Research
2 minute read
Chart of the week

Alternative lenders fill a growing CRE lending void

As CRE deal volume shows signs of thawing, alternative lenders sit in an excellent position to capture attractive income opportunities.

Column chart contrasting CRE loan originations during the first half of 2023 and 2024. Alternative lenders spiked from 23% of origination during the first half of last year to 40% during the first half of this year. Meanwhile, banks saw a commensurate decline from 42% during 1H 2023 to 26% in 1H2024. Insurance and CMBS originations remained relatively static over the same timeframes.
Aug 16, 2024
By Research
2 minute read
Chart of the week

Election anxiety comes into focus for markets

This week’s chart highlights perceived market drivers over the next 30 days. Notably, the downside drivers outweigh the upside.

Column chart showing the results of a poll surveying investment managers’ views on market drivers over the next 30 days. Results were decidedly bearish, with the political environment and equity valuations among the largest expected drivers of negative returns. These factors more than offset supportive central bank policies and equity fundamentals in participants’ views.
Aug 9, 2024
By Research
2 minute read
Chart of the week

Recent market volatility just the beginning?

Volatility spiked this week as macro questions came to the fore. If history is any guide, volatility could remain elevated as the election heats up.

Line chart showing expected volatility in rates (orange line) and equity markets (black line) steadily rising in the two months before U.S. Presidential elections from 1992 through 2020 and dropping once again after the election has been decided.
Showing 13–18 insights out of 318 results

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