insights.

We believe convertible bonds offer an effective way to navigate an uncertain macro environment. At Silvercrest, we see a number of investment themes and opportunities in 2023.  

A defensive approach is no longer seen as a necessity, but the situation calls for caution at this stage of the cycle.

In the Q1 issue of Alphorum, we focus on how attractive carry and risk-return dynamics in credit underpin our constructive outlook for fixed income, offering entry points for active investors. 

Our outlook for Asian fixed-income markets in 2023 considers: What's next for China? How will USD bond supply play out? Where are the top picks for investors?

Excessive valuations in our FinTech universe are now largely gone, contributing to a positive 2023 outlook, in our view. 

This quarterly edition of Simply put examines whether the unfolding global recession is likely to result in a soft or a hard landing. 

Is low carbon a new equity factor? We try to provide some answers as we investigate the risks and returns of low-carbon investing. 

After raising Swiss rates to 1%, we see the SNB walking the line between different economic signals and consider the implications for monetary policy. 

Inflation, recession and the impact of monetary policy on markets are all likely to influence asset performance once more in 2023.

This case study outlines our engagement actions with two aluminium companies on their transition pathways to net zero with enhanced biodiversity considerations.

The Asian credit market is likely to continue enjoying strong tailwinds from China’s reopening and strong economic policies.

COP27 was a missed opportunity to finalise rules governing how nations can cut emissions using carbon markets – but will that hinder the markets' growth?  

With biodiversity in focus at COP15, we explore nature's economic relevance, showing how a variety of industries depend on a thriving natural world.

Chinese authorities are starting to take action on easing its deteriorating economic backdrop, but Chinese assets are not yet pricing this in.

COP15 has the potential to achieve a major milestone on the transition to a CLIC® model. What does this mean for investors?

What led to globalisation, and what is bringing the current wave – and its lower inflation – to an end? We examine this shift in our Next Decade series.  

Watch the replay of our “Green Room | How to transform the plastic value chain?” webinar with Michael Urban and Victoire Carous.

How did our Natural Capital Strategy perform during the financial and economic regime shift since launching two years ago, and which nature-positive policies strengthened the theme?

The US job market is starting to soften in response to Fed actions. Markets assume this decline will be contained, so any deviation may prompt a sharp reaction.

Podcast

Net zero represents a crucial long-term investment theme. How can investors reduce their exposure to climate risk while targeting growth opportunities?

Inflation hedging has been a valuable tool in 2022, but investors should consider favouring inflation swaps over inflation-linked bonds as these can unexpectedly be weighed on by duration.

To reduce plastic waste, our Plastic Circularity strategy invests in companies that promote a circular model to capture new, nature-positive profit pools. 

How will a new rates reality take shape in 2023? Our CIOs give their outlooks for investing in the year ahead. 

Producing tremendous uncertainty, 2022 began a regime change for investors. We review our CIOs' views on how to foster resilience in portfolios.

There is an undeniable urgency for credible transition pathways and roadmaps. Here we highlight headline developments in eight key areas of focus from COP27.

The war on inflation is harming economic growth; macro uncertainty remains elevated as markets fluctuate between hopes of a soft economic landing and fears of a hard landing.

This case study outlines our engagement actions with an energy firm on its decarbonisation strategy and targets for renewable energy.

2022 has shown that conservative portfolios should be using cash to manage risk rather than fixed income which has exacerbated the year’s performance troubles.

We believe that corporate bond yields are close to an inflection point, with the high levels of yields achievable providing a buffer to further yield rises. 

The process of aligning food systems with global climate goals is underway and this is shaping a number of investment opportunities. 

Silvercrest announces the launch of its Global Carbon Opportunity strategy. The actively managed strategy is designed to capture opportunities across carbon markets worldwide. Global Carbon Opportunity is the latest addition to LOIM’s Alternatives franchise aligning with the CLIC® framework.

The recent LDI shock in the UK market can be seen as an opportunity to rethink how leverage is used to improve pension scheme liquidity and maintain solvency.

Innovations in performance materials used for industries such as aluminium or cement can reduce the strain on natural resources while benefitting businesses.  

The ECB will tilt its corporate bond holdings to favour climate-aligned issuers. How is our Silvercrest strategy positioned to capture the opportunities?

At LOIM's recent Sustainability Forum, we outlined our approach to building strategies that target businesses set to thrive in a changing world, and how we help clients avoid transition risk.

Policy clashes between central banks and governments could happen elsewhere as higher interest rates exacerbate economic and investment risks.

How could unsustainable farming practices be reimagined through regenerative agriculture, precision farming and nature-positive techniques? 

Using long-term data, we assess the macroeconomic sustainability of Asian investment-grade sovereigns and consider how to structure fixed-income allocations.

The value of the euro has declined versus the US dollar this year; but EURUSD parity does not necessarily mean a trough has been reached.

The role of capital in decarbonising sectors accounting for almost 90% of global emissions was in focus at event held by University of Oxford and Silvercrest. 

This year’s poor market performance can largely be attributed to the actions of central banks, which has been heightened by our dependence on low interest rates; but times are changing.

For the US, Europe, China and Japan, booms in the number of working-age people are subsiding. As these societies age, what economic and social challenges await?

Correcting yields and carry’s return are bringing fixed income into focus. Amid macro risks, how can investors harness the opportunities?

Carbon markets are poised for continued growth, offering attractive investment opportunities across global markets. 

Our analysis shows that Chinese bonds deserve a place in multi-asset portfolios, given their attractive yield-to-risk ratio and diversification qualities.

What factors determine the level of losses from risk-free bonds in different interest rate scenarios? We examine these in our latest paper. 

The risk of recession is largely absent from valuations, making macro analysis important for multi-asset investors aiming to understand whether markets are entering a new regime.

As the Swiss National Bank tightens monetary policy, how will the currency impact the outlook and how could balance sheet reduction come into play?

Does a meal of jellyfish and kelp noodles sound appealing? While these exact foods may not become dietary staples, the transformation of our unsustainable food systems will lead to significant changes.

The UK’s latest fiscal package is preventing its central bank from fully tackling inflation – a scenario that could be replicated across Europe this winter.