Munich Re said it has investments of as much as €2.5 billion ($2.9 billion) in private credit, an asset class that has been facing fund redemptions and scrutiny of underwriting standards. Private credit “is about 1% of the asset portfolio of our entire group,” Chief Financial Officer Andrew Buchanan said in an interview with Bloomberg TV. “It is between about €2 billion and €2.5 billion, which for...
Munich Re said it has investments of as much as €2.5 billion ($2.9 billion) in private credit, an asset class that has been facing fund redemptions and scrutiny of underwriting standards. Private credit “is about 1% of the asset portfolio of our entire group,” Chief Financial Officer Andrew Buchanan said in an interview with Bloomberg TV. “It is between about €2 billion and €2.5 billion, which for us is an incredibly digestible amount.” The $1.8 trillion private credit market is witnessing an exodus of investors after some high-profile corporate blowups led to mounting concerns over loan quality and exposure to software firms, whose business models are being threatened by rapid strides in artificial intelligence. Buchanan said Munich Re is investing in the senior secured end of the market, “through very carefully selected funds” that have “strong workout capabilities, should default rates start to tick up.” “In terms of absolute exposure, it is very digestible,” he said. “We are going for the quality assets.”
The France-Africa summit has mobilized deals amounting to 23 billion euros ($27 billion), according to President Emmanuel Macron . That includes 14 billion euros from French companies and 9 billion euros from African entrepreneurs and investors, he said at the Africa Forward Summit in Nairobi on Tuesday. “This is a big first,” Macron said at the summit that’s brought together more than 30 heads of...
The France-Africa summit has mobilized deals amounting to 23 billion euros ($27 billion), according to President Emmanuel Macron . That includes 14 billion euros from French companies and 9 billion euros from African entrepreneurs and investors, he said at the Africa Forward Summit in Nairobi on Tuesday. “This is a big first,” Macron said at the summit that’s brought together more than 30 heads of state and about 7,000 delegates including representatives of major French and African companies. “Let’s take a leap together, this is not a top-down agenda from Africa to Europe,” Macron said. “It’s an equal partnership.”
Moses Edwards, 45, from Wanstead, to appear in court in connection with incident in Whitechapel last week A 45-year-old man has been charged with arson with intent to endanger life after reports of a fire at a former synagogue in east London. Moses Edwards, from Wanstead, will appear at Westminster magistrates court on Tuesday after the alleged arson attack on the building in Nelson Street, Whitec...
Moses Edwards, 45, from Wanstead, to appear in court in connection with incident in Whitechapel last week A 45-year-old man has been charged with arson with intent to endanger life after reports of a fire at a former synagogue in east London. Moses Edwards, from Wanstead, will appear at Westminster magistrates court on Tuesday after the alleged arson attack on the building in Nelson Street, Whitechapel, on 5 May. Continue reading...
lucadp/iStock via Getty Images In January I wrote an article that displayed the ranges of returns that might be earned in 2026, depending on earnings growth during the year and the Price/Earnings (P/E) ratio at the end of the year. The formula I use to construct the table is: Return = Dividend Yield + (1 + Earnings Growth) X (1 + P/E expansion/contraction) – 1 Now a third of the 2026 return puzzle...
lucadp/iStock via Getty Images In January I wrote an article that displayed the ranges of returns that might be earned in 2026, depending on earnings growth during the year and the Price/Earnings (P/E) ratio at the end of the year. The formula I use to construct the table is: Return = Dividend Yield + (1 + Earnings Growth) X (1 + P/E expansion/contraction) – 1 Now a third of the 2026 return puzzle is in the books. The S&P 500 has returned 8% so far this year, so the trendline points to 27% for the whole year 2026—a very good return. We can use the formula above to solve for the combination of ending P/E and earnings growth that will deliver 27% for this year. It’s a P/E that remains near the current level of 40 and earnings growth above 22%. Here’s the trendline and the return table: S&P and Target Date Solutions But earnings are currently growing faster than 22%. So far this year they are growing 28% , which—if it continues AND P/Es stay at their current level of 40—will lead to a 33% return in 2026. So, an optimistic outlook sees today’s stock market returning 25-35% this year, which is phenomenal, especially since it follows 3 other very good years. The Downside of the Performance Puzzle But what if P/Es regress back toward their historic average of 15? If the US stock market reaches a P/E level of 15 over the next year, it will lose more than 50%. Any decline below 30 will result in double-digit losses, regardless of earnings growth. The following relationship between current P/E and subsequent return reinforces the current risk. Brian Kehm Conclusion The current strong earnings growth is cause for celebration, and you’d think that it would bring down the market P/E because the “E” in that ratio is growing, but it hasn’t. P/Es continue to expand, well into the realm of “never before.” The US stock market is extremely expensive. In the past, stock markets have not remained expensive for long. Is it because of artificial intelligence? Perhaps, but a similar argume...