Morgan Stanley plans to debut an interval fund investing predominantly in private credit, just as retail investment vehicles in the $1.8 trillion market are being hit with record redemption requests. The North Haven Strategic Credit Fund is expected to include “a wide spectrum of credit strategies” and anticipates allowing redemptions of 5% of outstanding shares every quarter, according to an Apri...
Morgan Stanley plans to debut an interval fund investing predominantly in private credit, just as retail investment vehicles in the $1.8 trillion market are being hit with record redemption requests. The North Haven Strategic Credit Fund is expected to include “a wide spectrum of credit strategies” and anticipates allowing redemptions of 5% of outstanding shares every quarter, according to an April 3 filing with the US Securities and Exchange Commission. “Therefore, shareholders may not be able to sell their shares when and/or in the amount they desire,” Morgan Stanley Investment Management Inc. said in the filing. The nontraded vehicle enters a challenging market, as the private credit industry is facing its greatest liquidity squeeze to date. Vehicles for retail investors — particularly business development companies — are grappling with a surge in redemption requests amid fears over AI disruption and underlying loan quality. Managers across the market are capping withdrawals to manage outflows, trapping billions of dollars in investor funds that are unable to exit. Read More: Trapped in Private Credit, Investors Wait to Pull Out $5 Billion A representative for Morgan Stanley declined to comment. While BDCs typically focus mostly direct lending, interval funds often invest in a more diverse set of credit assets. In addition to direct loans, Morgan Stanley will hold private securitized debt, capital solutions, real estate debt and public credit such as high-yield bonds. In March, JPMorgan Chase & Co. also announced plans to launch an interval fund investing in private credit that would offer 7.5% redemptions each quarter, a rare exception to the industry norm of 5%. Also undeterred by the wave of redemptions, Oak Hill Advisors is launching an interval fund that will deploy capital across public and private debt.
Technology stocks have returned to attractive levels for investors willing to play the long game after a pullback from last year’s record highs, according to veteran strategist Ed Yardeni . Uncertainty around the impact of artificial intelligence on software businesses, coupled with the effects of the war on Iran, have pushed information technology stocks down 13% since the sector reached an all-t...
Technology stocks have returned to attractive levels for investors willing to play the long game after a pullback from last year’s record highs, according to veteran strategist Ed Yardeni . Uncertainty around the impact of artificial intelligence on software businesses, coupled with the effects of the war on Iran, have pushed information technology stocks down 13% since the sector reached an all-time closing high in October. During that period, earnings estimates for the sector have accelerated, pushing its price-to-earnings multiple to 20.6. This is almost in line with the multiple of 19.6 for the S&P 500 Index. “For investors with a multi-year horizon, this is an attractive entry point,” Yardeni said in a note sent to clients on Sunday. The S&P 500 Information Technology Index rose 0.4% on Monday, heading for a four-day win streak. However, the sector is still down 7.2% so far this year, pressured by concerns over sky-high valuations, fears of AI disruption on software, and a risk-off mood taking hold. Information technology, along with communication services, make up a majority of the S&P 500’s market capitalization. Yardeni said that this exceeds the dot-com era peak. While the comparison is likely to make some nervous, there is “more earnings support” for the high concentration in the market compared to over 26 years ago, he said. “Today, the forward earnings share of the two sectors, at 42.0%, is only 1.6 percentage points above the market-cap share,” said Yardeni. “At the dot-com peak, the gap between market-cap share and earnings share exceeded 15 percentage points. Today’s concentration is well deserved.” Yardeni isn’t alone in signaling that information technology stocks have reached attractive valuations. Wells Fargo Investment Institute shifted their view on the sector from neutral to favorable, citing its underperformance against the S&P 500 and its durable outlook supported by the AI buildout. The firm’s global investment strategy team said information...
Eoneren/E+ via Getty Images Introduction Last week, the entire nation and the market expected US President Donald Trump to de-escalate the Iran war. That did not happen. On Saturday, Trump wrote in a social media post , saying, “Time is running out—48 hours before all hell will rain down on them,” as the war enters its fifth week and Iran continues to reject US demands. In order to avert a situati...
Eoneren/E+ via Getty Images Introduction Last week, the entire nation and the market expected US President Donald Trump to de-escalate the Iran war. That did not happen. On Saturday, Trump wrote in a social media post , saying, “Time is running out—48 hours before all hell will rain down on them,” as the war enters its fifth week and Iran continues to reject US demands. In order to avert a situation where the US hits Iran’s power plants on Tuesday, which would result in a dramatic escalation in the war and oil prices, the two countries and regional mediators are negotiating a potential 45-day ceasefire that could pave the way for ending the war. These latest discussions are centered on a two-phased deal, where the first phase would be a 45-day ceasefire to allow further negotiations, and the second phase would be a deal to end the war. With the US 10-year Treasury yields climbing as high as 4.4% mid-last week before closing at 4.35% for the week, along with oil prices measured by Brent crude ( CO1:COM ) climbing 1.6% for the week to $108/barrel, the markets are starting to price in a “Trump risk premium” as policy uncertainty and geopolitical tensions rise, according to economist Robin Brooks. However, the way I see it, even with $100+ per barrel of oil prices, the US economy won’t likely enter a recession for reasons I will explain below. I also believe that with midterm elections now just 8 months away, a prolonged war with higher energy prices and rising interest rates is not in President Trump’s best interests, increasing the likelihood of a faster resolution to the Iran war over the next several weeks. The US Economy Is Well Positioned To Handle $100+ Oil Prices First, the energy intensity in the US has been declining, reflecting improvements in energy efficiency and structural changes in the economy, as you can see below. The energy intensity is a measure of the amount of energy used to produce a unit of economic input. Based on analysis from Capital Economics...
sankai Vahan Janjigian, chief investment officer at Greenwich Wealth Management, said he remains optimistic about the near-term health of the U.S. economy despite mounting inflationary pressures. “The economy is still doing well enough that I’m not that concerned about a recession in the immediate future,” the strategist said in an interview with CNBC. However, Janjigian warned that the combinatio...
sankai Vahan Janjigian, chief investment officer at Greenwich Wealth Management, said he remains optimistic about the near-term health of the U.S. economy despite mounting inflationary pressures. “The economy is still doing well enough that I’m not that concerned about a recession in the immediate future,” the strategist said in an interview with CNBC. However, Janjigian warned that the combination of tariffs and elevated oil prices ( CO1:COM ), ( CL1:COM ) is creating a challenging environment for the Federal Reserve. He noted that these factors could drive both core and headline inflation higher, putting the central bank in “a more difficult place than it was before.” Rather than cutting rates, Janjigian believes “an interest rate hike at this point is going to be more likely.” The wealth manager has been using the recent surge in oil prices ( CO1:COM ), ( CL1:COM ) as an opportunity to take profits on energy holdings. Janjigian disclosed that he trimmed positions in the XLE energy ETF ( XLE ) and Murphy Oil ( MUR ). While he expects oil prices to eventually decline, he does not see them returning to prewar levels, predicting they will “settle somewhere in the 80s to 90s.” To hedge against a potential economic slowdown, Janjigian is shifting toward defensive, dividend-paying stocks. He is currently adding positions in Kimberly-Clark ( KMB ) and The J. M. Smucker Co. ( SJM ), which he views as resilient picks with high yields that are unlikely to be significantly affected by weaker economic conditions. The strategist continues to hold long-term income-generating positions in Verizon ( VZ ) and IBM ( IBM ), though he is not adding to those stakes at present. “They’ve done extremely well for me over the past few years,” Janjigian said, reaffirming his preference for dividend-paying equities. Despite the headwinds from inflation and uncertain Fed policy, Janjigian maintains an opportunistic approach to the current market environment. His strategy of trimming cyclical ...
Beat the S&P 500 isn't necessarily every investor's goal. While you will earn higher returns that way, stocks that can beat popular benchmarks are riskier to hold. Retirees and people who are in the latter part of their careers typically don’t need to take on as much risk, which is why many of them are drawn to low-volatility stocks that offer strong dividend yields . Realty Income (NYSE: O) is on...
Beat the S&P 500 isn't necessarily every investor's goal. While you will earn higher returns that way, stocks that can beat popular benchmarks are riskier to hold. Retirees and people who are in the latter part of their careers typically don’t need to take on as much risk, which is why many of them are drawn to low-volatility stocks that offer strong dividend yields . Realty Income (NYSE: O) is one of the top stocks that fulfills those two requirements. Its 5.29% yield is higher than most stocks, and a 0.77 beta indicates that it is less volatile than most stocks. While other financial stocks also have low volatility and high yields, there are some reasons to consider the real estate investment trust (REIT) . Image source: Getty Images. Continue reading
Live cattle futures are pushing higher, with most contracts up 75 to 95 cents. April is up $2.375 on First Notice Day. Cash trade took off last week, with sales at $245-246 across the country, up $8-10 from the previous week. Feeder cattle futures are moved, with contracts down a...
Live cattle futures are pushing higher, with most contracts up 75 to 95 cents. April is up $2.375 on First Notice Day. Cash trade took off last week, with sales at $245-246 across the country, up $8-10 from the previous week. Feeder cattle futures are moved, with contracts down a...
Lean hog futures are posting gains of 25 cents to $2.50 at midday. USDA’s national base hog price was not reported on Monday morning due to light trade. The CME Lean Hog Index was down another 16 cents on April 2 at $90.01. Managed money was busy cutting 7,275 contracts...
Lean hog futures are posting gains of 25 cents to $2.50 at midday. USDA’s national base hog price was not reported on Monday morning due to light trade. The CME Lean Hog Index was down another 16 cents on April 2 at $90.01. Managed money was busy cutting 7,275 contracts...
Soybeans are trading with contracts 3 to 4 cents higher at Monday’s midday. The cmdtyView national average Cash Bean price was down 5 1/2 cents at $10.94. Soymeal futures are $2 to $2.30 higher in the front months, with Soy Oil futures are up 70 to 75 points so far...
Soybeans are trading with contracts 3 to 4 cents higher at Monday’s midday. The cmdtyView national average Cash Bean price was down 5 1/2 cents at $10.94. Soymeal futures are $2 to $2.30 higher in the front months, with Soy Oil futures are up 70 to 75 points so far...
Cotton futures are trading with gains of 77 to 82 points at midday. The US dollar index is $0.020 lower at $99.840. Crude Oil is up $1.07 at $112.61. Managed money was slashing 21,222 contracts from their net short in cotton futures and options in the week of March 31....
Cotton futures are trading with gains of 77 to 82 points at midday. The US dollar index is $0.020 lower at $99.840. Crude Oil is up $1.07 at $112.61. Managed money was slashing 21,222 contracts from their net short in cotton futures and options in the week of March 31....
The wheat complex are coming out of the long weekend with losses across the three markets. Chicago SRW futures are starting the week with losses of 4 cents in the front months. KC HRW futures are down 10 to 11 cents on Monday. MPLS spring wheat is trading with 4...
The wheat complex are coming out of the long weekend with losses across the three markets. Chicago SRW futures are starting the week with losses of 4 cents in the front months. KC HRW futures are down 10 to 11 cents on Monday. MPLS spring wheat is trading with 4...
Corn futures are fading off the early morning weakness, with contracts up 1 to 2 cents at Monday’s midday. The CmdtyView national average Cash Corn price is up 2 cents at $4.15 1/2. Monday morning’s Export Inspections report showed 2.002 MMT (78.82 mbu) of corn shipped in the week of...
Corn futures are fading off the early morning weakness, with contracts up 1 to 2 cents at Monday’s midday. The CmdtyView national average Cash Corn price is up 2 cents at $4.15 1/2. Monday morning’s Export Inspections report showed 2.002 MMT (78.82 mbu) of corn shipped in the week of...