Sat, May 26, 2018
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. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven