Top Research Picks for April 2023

In the third edition of our "Investment Research Digest" we take a look at these and other topics: Where to find potential opportunities in the US banking sector despite the recent crisis? How is the commercial real estate market doing? Could private credit be a good option for risk-averse investors?

Here are our top research picks for the month of April:

End of the globalisation era?

Globalisation has been deemed to be beneficial for both companies and consumers by economists, but its political appraisal has always been more complex, as per the asset management company DWS Group. Read More

“Bilateral agreements are gaining importance, supply chains are being reorganized, and trading partners are being reselected as countries seek others who share a similar value system. National security is again more frequently cited as a reason for or against a trade partnership,” writes Bj?rn Jesch, Global Chief Investment Officer at DWS Group.

Opportunities and challenges of energy transition

Energy transition to renewable sources is one of the main aspects to mitigate the worst effects of climate change, presenting challenges for policymakers and opportunities for investors, says Wellington Management. Read More

“We expect to see massive investments in the major systems that fuel our economy, from reconfiguring electricity grids and transportation networks to fortifying infrastructure, agriculture, and water and waste systems,” writes Alan Hsu, Portfolio Manager at Wellington Management.

The good and the bad of commercial real estate

The current high-interest rates and rising debt costs have created liquidity challenges for owners of commercial real estate. PIMCO believes asset sales will accelerate in 2023 and sees investment opportunities in a new real estate landscape. Read More

“As traditional liquidity channels continue to dry up, we believe asset owners could turn to investors with the flexibility, experience, and creative structuring capabilities to offer bespoke capital solutions,” as per John Murray, Managing Director and Portfolio Manager, Global Private Real Estate, at PIMCO.

Invest in the US banking sector now?

The recent crisis in the US banking sector was not brought on by systemic issues and does not portend another financial disaster on the scale of the 2008 Global Financial Crisis, as per Amundi Asset Management. Read More

“We believe investors can find opportunities in the banking space by focusing on the banks that have invested in technology or have enviable deposit dynamics as valuations are compelling, while not waiting for consensus earnings to be revised down,” writes Craig Sterling, Head of Equity Research at Amundi Asset Management.?

Private Credit: An All Weather Asset Class

Over the last decade, the demand for private credit has exploded now a $1.8 tn worth market. Neuberger Berman says that the asset class will continue to present attractive opportunities and takes a closer look at its key pillars in a whitepaper. Read More

“As private-credit providers can attest, there is finally “income” in fixed income! Over the last decade, direct lending’s 8.7% annualized return has outshined other sectors across the credit landscape,” as per Neuberger Berman.

Do you want to get the latest investment research, interviews and more directly in your inbox? Register here: https://capitalmarkets.net/register/