M&G Investments: Bonds are back after years in the dark
As inflation has started to normalise, many market observers have started to find bond markets attractive again. Yields have risen to their highest levels in over a decade. Corporate debt has recovered, making bond investors comfortable after years of bad returns.
Drastic reduction of sustainability labels for passive investment funds
As many as 70% of the ETFs touted as the most sustainable in their class by the fund companies that offered them have been downgraded in one year. Rather than aiming for sustainable investment, passive funds were found to incorporate only one ESG factor.
High yield credit and subordinated debt: enhanced income possibilities
After a dramatic market reset in 2022, the high yield market is now living up to its name.
FundRock MD: debt funds, low leverage strategies in strong position
Alternative investments strategies relying on limited bank financing appear to be well-placed to profit from the current crisis of confidence in the banking sector. And despite EU regulatory measures to deal with greenwashing, ESG products are seeing increased demand.
Pinsent Masons: Demystifying funds legislation in EU
It was when the Netherlands, Belgium and Luxembourg signed the customs union that a geographical area at the heart of Europe was defined. The aim was to promote economic integration and cooperation between the three member states.
Since then, Benelux has been one of the most successful regional integration models, both in terms of economic growth and political stability. This success is also rooted in the creation of a solid legal framework that provides a stable and transparent business environment.
Eltifs have a US parent: the Business Development Company
If there’s one thing clear from recent months, it’s that Luxembourg is placing a major bet on the future of Eltifs, or European Long Term Investment Funds. The EU’s adoption of a major upgrade of the Eltif regulation is opening the doors to private markets for high-net-worth investors and wealth management clients.
Decalia’s Vettasseri: Paradigm shift requires innovation
Rising interest rates and the demise of Silicon Valley Bank and Credit Suisse have led to a paradigm shift in private equity and venture capital. Reji Vettasseri, lead portfolio manager at Swiss private finance group Decalia, believes investors now need to to be innovative with emerging strategies, carefully selecting ‘small cap’ firms to invest in instead of fleeing to the safety of larger ventures.
PGIM Investments: Rising focus on fundamentals in high yield
Jonathan Butler, Head of European Leveraged Finance at PGIM Fixed Income, shares his optimistic outlook for high yield bonds in 2023 and why investors should focus on issuers with strong fundamentals.
CSSF plans on-site inspections on climate and ESG risks
Luxembourg’s financial supervisor CSSF this week presented its priorities in the area of sustainable finance. The regulator said it strives to “accompany the transition of the financial sector and its players in a proactive way”. It has defined separate priorities for banks, for asset managers and for investment firms.
IO Talks Luxembourg: Decalia’s Reji Vettasseri on the fallout from SVB, private markets, venture lending and Luxembourg’s challenges
This edition of IO Talks Luxembourg looks at the fallout from the collapse Silicon Valley Bank on venture capital finance, on alternative investments, venture lending, structured growth capital and the challenges for Luxembourg’s investment ecosystem against the backdrop of increasing tight regulation.