What Have I Been Reading?
Adam Grimsley
Working with family offices and pension schemes to access the opportunity set in private and alternative markets.
Thought I’d share a few pieces I found interesting over the last week or so.
I’d love to hear any other suggestions!??
Firstly…??
The FT Business Book Award is being announced on December 9th at the Peninsula. If anyone has a spare ticket, hook me up! I’ve listened to most of the shortlisted books on Audible, and my personal favorite was Tribal: How the Cultural Instincts That Divide Us Can Help Bring Us Together—highly recommended.
However, my standout read of the year was Co-Intelligence: Living and Working with AI by Ethan Mollick. It really resonated with my obsession with AI. In a nutshell, Mollick explores how we can use AI as a “buddy” and how our interactions with that buddy shape our relationship with ourselves. So, I was right to say thank you to Alexa!??
Bank of England: November Financial Stability Report (FSR)?
What better way to start the morning than with the FSR Nov ‘24? Bet you can’t name one! It’s actually quite good—and thorough at 121 pages.
The BoE outlines key shifts since June, highlighting:??
1. Stress Test Results: Positive news—UK banks look robust.??
2. Market-Based Finance (MBF): The BoE flags risks from leveraged positions facing potential losses due to sharp market moves, global uncertainty, and compressed risk premia. Some might say this warning is a bit tardy.??
3. BOE working on new MBF Standards: The BoE aims to reduce risks from leverage, concentration, and pro-cyclical margin practices.??We shall see.
4. PE and Insurance Liabilities: A whole section covers private equity’s acquisition of insurance liabilities as a low-cost funding source. I’ve been doing a fair bit of thinking about this space and I’m sure there?will be significant growth, particularly in funded reinsurance markets and mid-market CLOs application.??
Man Group: Not All “Alts” Are Created Equal
I always admired the fact the Man Group never lacks a good data point. This piece tests claims about private markets’ diversification benefits, advocating for a truly market-neutral “alternative” approach. Going short in private markets is a little tricky. ??
领英推荐
The Guardian: Remember the Global Financial Crisis? High-Risk Securities Are Back
Everyone loves a scare story. CLO managers might not, but this pretty shambolic article has it all—GFC flashbacks, private equity, hedge funds, illicit drugs, and whack-a-mole, all the buzz words.
Federated Hermes: Spectrum Q3 2024 - Marvellous Medicine
Life sciences offer LPs a chance to combine returns with social good. But which is better—AI or biotech? FH’s excellent piece looks at the intersection and suggests mitigating the binary outcomes of drug trials by investing in firms producing tools and tech for research. Think “picks and shovels.”
UBP: COP29 - Will AI Be Mentioned in the Final Text?
AI’s role in climate solutions is topical, and COP29 had to cover it. UBP’s piece highlights AI’s potential for energy management and industrial innovation but balanced with rising emissions from AI infrastructure. Efficiency gains in AI chips could help, but history (Jevons Paradox - I’d never heard of it either) shows increased efficiency often drives higher usage. Addressing this at COP29 is crucial for aligning AI’s growth with global sustainability goals.??