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The Bank of England has raised concerns about private equity's growing involvement in the insurance sector, warning that it increases the risk of "fire sales" that could destabilize financial markets. Many US private equity firms are acquiring life insurers, while UK insurers are shifting risk to PE-backed reinsurers, which often pursue higher returns through riskier, illiquid investments.
Active momentum funds are gaining popularity as major fund houses like Axis MF, Nippon MF, and Union AMC launch new schemes, despite the presence of over 20 passive options. Fund managers argue that the active approach, which involves continuous market analysis, is crucial for navigating inherent risks, especially during market downturns. Umeshkumar Mehta from Samco Mutual Fund highlights that momentum strategies have thrived in India's rising market over the past 15 years, emphasizing the need for flexibility in active management.
Market returns in India are expected to moderate after two years of strong performance, as the equity market faces challenges like slowing earnings growth and high valuations. In response, traders are turning to pair trading, a strategy that allows them to profit from the relative performance of two correlated stocks while minimizing market exposure. Short-term pair trade ideas include JSW Steel versus Tata Steel, offering opportunities in a sideways market.
Shares of Paytm and CAMS surged 3 percent, reaching 52-week highs of Rs 952 and Rs 5,098.80, respectively. CAMS has seen an 89 percent increase year-to-date, while Paytm has gained 47 percent. Their inclusion in the F&O segment is expected to enhance liquidity and open new trading opportunities, also qualifying them for potential entry into the Nifty 50 index.
Wall Street banks are poised for their worst trading year since the pandemic, with projected revenues from foreign-exchange and rates trading falling significantly. Over 250 firms, including major players like Goldman Sachs and JPMorgan, are expected to generate $32 billion from Group-of-10 rates and $16.7 billion from currencies, marking declines of 17% and 9% respectively.
Milwood Hobbs, Managing Director at Oaktree, discusses the complexities of sourcing credit deals, emphasizing the importance of finding sellers in a less liquid market compared to public equities. With a background in leveraged finance at Goldman Sachs, he shares insights on evaluating opportunities and the dynamics of deal origination.
TS Lombard has outlined strategies for 'tariff-hedging' European portfolios, emphasizing the importance of navigating the complexities of trade policies and tariffs. Investors are advised to consider various financial instruments and market conditions to mitigate risks associated with tariff fluctuations.
As Wall Street employees anticipate their Christmas bonuses, they reflect on their value, particularly in light of potential shifts in leadership. The prospect of high-profile figures like Jamie Dimon and Marc Rowan leaving for public office raises concerns among shareholders about the future of major financial institutions.
Milwood Hobbs, Managing Director and Head of Sourcing & Origination at Oaktree, discusses the complexities of credit investing, particularly in private credit where deal sourcing is challenging. He shares insights on how he receives deal offers and evaluates opportunities based on his extensive experience in leveraged finance.
Jeremy Coller, a prominent UK private equity founder, has appointed Sara Macedo as the first CEO of his family office, Coller Holdings. This move marks a significant step as Coller expands his investments beyond his namesake firm, with Macedo joining in September.
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