Expert Panel

Two months remain before the Digital Operational Resilience Act (Dora) comes fully into force in January 2025. A CSSF survey launched this summer has revealed that the compliance process for most entities is ongoing, but challenges remain regarding resources, dependencies, delays, and contractual negotiations.

Spreads on high-yield bonds are tight, and the fundamentals of high-yield look strong. Taking (credit) risks has clearly paid off this year.

The recently enacted NPL law in Luxembourg brings critical updates to credit servicing and purchasing, writes Sebastiaan Hooghiemstra at Loyens & Loeff Luxembourg in their latest contribution as member of Investment Officer’s panel of experts.

Local currency bonds have lagged this year, but expected interest rate cuts by the Fed have investors in emerging markets hoping for better times.

secondary transactions have grown significantly providing liquidity to long-term illiquid asset classes. Indeed, despite private fund-raising contraction, across the private market, secondaries fundraising almost doubled in 2023. In 2024, it is expected that the global secondary private market will reach approximately 140 billion dollars in size.

Investors are spotting opportunities in defence companies, particularly given the continued military support for Ukraine and significant increases in European defence budgets. Long-term revenue prospects appear stable, driven by the ongoing maintenance of military equipment and the need to replenish supplies.

The AIFMD 2 introduces new rules for loan-originating alternative investment funds, but uncertainties remain around the potential for a cross-border “lending passport,” writes Loyens & Loeff’s Sebastiaan Hooghiemstra, member of Investment Officer’s expert panel.

Pharmaceutical companies were once known for their strong growth potential, but slowing revenue growth, lower valuations, and higher dividend yields have given them a more mixed profile in recent years. However, over the past three years, Novo Nordisk and Eli Lilly have stood out by reclaiming their growth status.

Trackers and index funds are the logical choice for investing in US government bonds. Indeed, within long-term dollar bonds, the scope for active management is limited.

The proposed abolition of the current Non-Dom tax regime marks a significant shift in the UK’s fiscal framework. The new Labour UK government will be taking forward earlier plans to harmonise UK tax resident individuals’ taxation on the basis of their worldwide income and gains, albeit with some modifications.