Sun, Aug 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

HSBC Private Bank overweights alternatives

Tuesday, July 02, 2013

Benedicte Gravrand, Opalesque Geneva:

HSBC believes that market volatility will continue in the short term, that any reduction in the Fed’s monetary stimulus would be gradual and that this would support equity markets in the medium term. While the bank remains cautious on fixed income, cash, commodity prices and emerging market securities, it is overweight on alternatives such as hedge funds, real estate and private equity to add diversification to portfolios.

According to HSBC Private Bank's Quarterly Investment Outlook Q3 2013, "bond markets remain the largest global asset class, and when US Treasury prices move, investors pay attention." Indeed, when bond yields rose in May and June, this caused a sell-off in most asset classes. Investors expect bond yields to rise when the Fed’s tightening starts, and this has lead to higher real yields and lower breakeven inflation expectations. Since the Fed announced a tapering of QE3 if market conditions continue to improve, markets are actually concerned about improvements in US economic conditions. But the bank believes the Fed will not act prematurely, that any action will be gradual, and that benchmark interest rate should remain anchored for longer than expected. As bond yields had been falling since 1981, many believe it is the end of a 32-year bull bond market, writes Willem Sels, UK Head of Investment Strategy at HSBC Private Bank in the outlook report.

"It is interesting that markets are s......................

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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new