Private equity faces mounting headwinds as giant investors like pensions and endowments grapple with indigestion from over-allocation. Funds are sitting on trillions in unsold companies, while stocks of major alternative-fund sponsors have fallen 12% to 36% this year. With 2-year Treasurys offering nearly 5% yields, riskier alternatives are becoming less attractive.
Adding pressure, the Securities and Exchange Commission proposed new rules this week that would open the floodgates for individual investors to buy private funds. Meanwhile, workplace plans typically cost less for basic coverage, though Medicare often gives beneficiaries greater freedom to pick doctors with no surprise expenses. In market news, the September jobs report is viewed as good credit market news, with analysts noting the weak payrolls number provides balanced sentiment around interest rates.
The labor market remains in low-hire, low-fire mode, with the 12-month average gain entering the report sitting at only about 45,000 jobs monthly. At Capital Group, the head of ETFs and SMAs explains why actively managed exchange-traded funds are gaining share over passive ETFs in model portfolios. Other topics include the surge of one-off awards on big-company boards, the investment sums Americans must justify spending on technology versus food, and swarm chasers hunting for clues of bad AI behavior.
Sumber: Wall Street Journal Markets · Diringkas oleh HeadlinesBriefing