Mon, Jun 18, 2018
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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a