Investing

China’s 10-year bond yield has recently dropped below 1.6 percent, a consequence of a weakening economy plagued by deflation. For the first time in 14 years, restrictive monetary policy has shifted towards a moderately expansionary stance. The goal: to support the economy and repair reputational damage.

The concentration risk in equity markets is growing as US megacap technology companies continue to attract capital. Diversification, often seen as the only “free lunch” in investing, risks coming at a cost.

ESG factors are playing an increasingly diminished role in the investment decisions of institutional parties. For the vast majority, short-term performance takes precedence over the long-term benefits of sustainable investing.

Here are the ten most read articles on Investment Officer Luxembourg for 2024.

William De Vijlder (64) retired this autumn as the chief economist of BNP Paribas. In a farewell interview, he reflects on four decades of economic analysis. ‘Everything is even more interconnected than I once thought, which makes it incredibly fascinating.’

European investors are heading into 2025 with a stark warning: tread carefully. Analysts at Axa Investment Managers (Axa IM) have painted a picture of fragile markets, wavering economies, and thin margins for mistakes.

Swap rates have fallen below European government bond yields for several weeks—a rare shift that is forcing institutional investors to reconsider their interest rate hedging strategies.

Wall Street’s relentless climb offers both a spectacular show and a precarious wager on the world’s most dynamic economy .While sceptics see a bubble ready to burst, optimists argue that growth is justified.

In 2024, valuations in private markets stabilised, and deal volumes picked up somewhat, making this year slightly better for private investors compared to 2023. However, it was far from spectacular, experts told Investment Officer in a retrospective. There remains a mismatch between what sellers expect for their stakes and what buyers are willing to pay—a lingering effect of significantly higher interest rates.

Quintet chief investment officer Daniele Antonucci shared where the private bank has increased and decreased its exposure, plus investment trend shifts among its European clientele.