Wed, May 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fiscal drag is a bigger issue than the fiscal cliff

Thursday, December 13, 2012

amb
Mark Okada
Bailey McCann, Opalesque New York:

Fiscal drag is the next big economic issue in the US, more than the fiscal cliff, according to leaders at Highland Capital Management. Mark Okada, Co-Founder and CIO, and Patrick Boyce, Partner and Head of Private Equity, offered their outlook for the next year to members of the media earlier today in New York. During the discussion, both Okada and Boyce voiced concerns that looming changes to the tax code, and the inability of congress to craft a viable debt servicing plan will only add to the drag on growth in the US economy.

Highland Capital Management is a Texas-based investment firm with approximately $19bn in assets under management. The firm focuses on global alternative credit strategies and amounts to one of the larger players in the space. In addition to credit, the firm also offers alternative investments including emerging markets, long/short equities and natural resources.

"If politicians understood, what the uncertainty around the debt ceiling conversation is really doing to the markets and the broader economy they would've resolved this issue a long time ago," Okada said. Highland does not expect that the US will go off the cliff, they expect a short term deal and then a bigger fix down the road. However, they do expect that the Bush tax cuts will expire for the wealthiest in the US.

Moving into 2013, both men expect that the fiscal drag will ultimately create winners and losers in the equity mark......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n