April 30, 2012
Credit Suisse's Asset Management division today announced the release of the second quarter 2012 edition of its "Alternatives Quarterly." This publication, accompanied by a short video, offers insights from the Asset Management division's Global CIO Office and leading alternatives portfolio managers on global economic trends and capital markets.
In this edition,
, Global Chief Investment Officer for Asset Management and Private Banking, suggests that, despite volatility in the first quarter of 2012, global markets have embarked on a period of sustained improvement, supported by the following: 1) Global economic growth that remains resilient, particularly in the US and
; 2) The European Central Bank's (ECB) recent Long-Term Refinancing Operation, which helped to improve credit flow in the region; and 3) Corporate balance sheets that remain healthy while earnings have stayed generally stable, especially in the US.
Mr. Keitel views the recent correction in risky assets not as a reversal of fortune for the markets, but rather as a renewed buying opportunity in the coming weeks for investors, especially in light of what he believes are attractive valuations. Other key topics in the Q2 2012 issue include:
- Corporate events and restructurings have led to positive momentum in the US corporate credit market, benefiting event-driven hedge funds. Despite the ECB's efforts, the European distressed opportunity will likely unfold, albeit over a longer investment time horizon.
- Global macro managers achieved balanced returns across asset classes, particularly driven by directional macro trends in equity indices, fixed income and commodities.
- The senior loan market exhibited positive performance in the first quarter amid an overall improvement in market tone. Looking ahead, the senior loan market may trend higher on continued demand for the asset class, though potential market shocks may arise from the Eurozone.
- Despite recent dips in Chinese and European economic indicators, the Commodities group believes tightening supply and improving demand in US and key emerging market economies may provide support for commodity markets in 2012.
- Private equity funds continue to increase their investment focus in emerging markets, as these regions have continued to be receptive towards private equity. Demand is driven by pension plans and endowments seeking this exposure to help meet long-term obligations and return requirements. The Customized Fund Investment Group reports that PE fundraising in emerging markets increased by 64% in 2011, reaching $38.6 billion. With economic headwinds expected to continue in parts of Europe, commitment levels to distressed debt have similarly gained significant momentum in 2011.
For a copy of the Q2 2012 Asset Management Alternatives Quarterly or to view the video, please contact
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