Sun, Mar 29, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner