‘Keep going, there’s nothing to see here’
The European Central Bank (ECB) is charting a course of strategic patience, signalling a readiness for a gradual policy shift that could commence as early as June. Analysts uniformly anticipate that while the near term may see steady policy rates, a carefully orchestrated move towards easing is on the cards.
As the ECB prepares for its forthcoming rate decision on Thursday, leading financial analysts have shared their insights, painting a picture of what asset owners can expect in the coming months.
Dora is ‘around the corner’
The first quarter of 2024 has lapsed and there are only less than three quarters to go for the implementation of the Digital Operational Resilience Act (Dora). Dora will apply to most EU financial entities, including (Ucits) management companies alternative investment fund managers (AIFMs), as well as ICT third-party service providers (including providers of cloud computing services, software, data analytics services and data centres).
IMF sounds alarm over perils in private credit markets
The International Monetary Fund (IMF) this week issued a dire warning concerning the rapidly expanding private credit sector. With Luxembourg standing as a pivotal hub for private credit in both Europe and globally, the IMF’s cautionary stance merits serious attention from the Grand Duchy’s financial community.
Animal spirits
Money’s gotta move—it’s the backbone of our economy, and the speed at which it zips around, known as the turnover or circulation rate, tells us a lot. It’s all about how often a dollar is spent in a certain timeframe. When times are good, money flows like a river—transactions aplenty. But in rougher waters, that river slows to a trickle as folks hold tight to their wallets. Lately, after a sluggish spell, we’re seeing that flow pick up speed again.
Launching Raifs as sub-funds is the new new thing in Luxembourg
Raifs have been one of the most successful investment vehicles for Luxembourg. Part of their appeal has been their utility in launching sub-funds to form an umbrella structure. This has led, according to data analysis by Investment Officer Luxembourg, to it becoming very popular to launch sub-funds under existing Raifs.
Peak volatility expected during US elections
As the U.S. presidential election nears, the markets are bracing for heightened volatility, particularly within the S&P 500, signaling the first significant movement in the Volatility Index (VIX) in several months. Investors are turning their gaze toward the Chicago Board Options Exchange (CBOE) Volatility Index futures, anticipating notable fluctuations in the S&P 500 as election day approaches.
Alternatives continue dynamic growth
Sofia Harrschar, head of alternative investments & structuring at Universal Investment, delves into the shift towards alternative investments among institutional investors.
Stress before distress: opportunities in the European mid-market
What is the outlook for stress and defaults within the European mid-market space?
Lombard Intl hit with record €1.68 mln fine over AML flaws
Luxembourg’s Commissariat aux Assurances (CAA) slapped Lombard International Assurance with a record 1.68 million euro fine for lapses in its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. This enforcement action underscores the regulator’s stringent stance on compliance in the financial sector.
McKinsey: Private markets hit a rough patch
The roller coaster ride of the private markets hit a notable dip in 2023, per McKinsey & Company’s annual deep dive. Last year, the industry saw a global fundraising decrease of 22 percent to a little over one trillion dollars, marking the lowest point since 2017. This downturn reflects broader economic pressures, from rising financing costs to market uncertainty, but there’s more to the story.