Harry Harrison

Interesting article from Douglas Appell in Pensions & Investments about the post-ZIRP, “higher for longer” interest rate environment that boils down to advocating for the pursuit of satisfactory investment outcomes that are relevant to asset owners’ actual spending needs and goals, rather than continuing the historically common practice – and expected future folly – of tethering one’s equity beta to that of an equity benchmark whose performance from today’s elevated levels is widely expected to be sluggish and insufficient to fund minimum liabilities (ie: payout rates, actuarial hurdles, spending goals, etc.).   Quoting the inimitable Ben Phillips, “In that world, the relevant benchmark becomes the client’s required cash flows.”   Fresh perspectives and new ideas are warranted. Satisfactory outcomes not benchmarks.

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December indigestion caused by the Federal Reserve's comments today? The S&P was humming along until the FOMC cut 25 bps as expected, and the changes to the statement were trivial (although the vote to cut wasn’t unanimous). Chairman Powell wasn’t a reassuring voice at this meeting, and the market’s confusion led to hawkish projections and speculations for 2025. The S&P 500 closed at the day's lows, -3%. Capital flow was heavy at 145%. Today's move lower in the stock market was significant. We’re below the 50-day moving average for the first time since September. We’re not oversold (yet), and we’re (only) back at mid-October levels. From a technical standpoint, the rest of December should be a race for the exits….but dip-buyers will (most likely?) do their thing. It's worked for the last 12+ years, so why stop now? Considering today’s drop is rooted in a market unprepared for a Fed that wasn’t gung-ho with spiking the punch bowl a lot more, it could mean that once investors relax and think, they won’t believe this is all that bearish. If that’s the case, watch for an enjoyable bounce back. In summary, the fundamental landscape isn’t radically altered; however, the emotional landscape temporarily is.

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Should be an interesting conversation on preparing businesses for sale in todays market. Please join if you can.

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Patricia Janco-Tupper and I were so pleased to be invited by Dr. Debi Silber WBENC Certified WBE to her podcast where she helps individuals who have been shattered by betrayal to experience healing. On this podcast we focused on the steps #SuddenlySingle people should consider about their finances while going through this traumatic process. #AskBison #BisonWealth #AskPacky #Packy #FinancialAdvice #FinancialPlanning #SuddenlySingleWomen

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In the latest edition of Barron's, long-tenured Associate Editor Randy Forsyth writes: “Bond investors of a certain age will recall that the Treasury 30-year bond yield briefly touched 14% 40 years ago this past week. While the all-time record of about 15% was hit in September 1981, the 14% yield was more valuable, given that inflation by 1984 was in retreat from the double digits of the late 1970s and early ‘80s, to 4%. That meant a real return of 10% from a risk-free government security, more than stocks have returned historically. […] This was the turning point for the generational decline in yields, observed Jeffrey Gundlach.” And likewise supplied the fuel for a generational increase in equity prices, which had previously languished during the high inflation of the 1970’s until tamed by Fed Chairman Paul Volcker. We didn’t know it in real time, but on reflection the ensuing four decades were halcyon days, and the “easy money” was long duration and long beta. No more. Need new ideas. Fresh perspectives. Outcomes not benchmarks. .

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𝗕𝗿𝗶𝗱𝗴𝗲𝘄𝗮𝘁𝗲𝗿 𝗼𝗽𝗲𝗻𝘀 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘁𝗼 𝗿𝗲𝘁𝗮𝗶𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗦𝘁𝗮𝘁𝗲 𝗦𝘁𝗿𝗲𝗲𝘁 𝗘𝗧𝗙 https://lnkd.in/dCYdE-zK   Risk parity funds for retail investors have not worked well over the past decade or so (and Bridgewater’s All-Weather strategy has also underperformed for some time): the pioneer in the industry (Wealthfront Risk Parity Fund with $1.3bn in AUMs) is going to be liquidated in January https://lnkd.in/dya2H6SZ , and other products have also failed to beat a simpler 60/40 strategy.   This despite the carnage in bond markets in 2022 and the elevated asset correlations (or, more likely, because of…).   I guess it all boils down to the specific strategy used: this product will also use leverage in an ETF, so it will be interesting to see how it plays out. 

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@Liz Perenick, Head of Portfolio Management for Private Placements, was excited to join a panel on key industry trends at this year's Private Placements Global Forum: Europe. The conference featured industry leaders covering a comprehensive agenda of today's major topics in private placements, including market updates, issuer perspectives, and much more. #insuranceassetmanagementstrategygroup #insuranceassetmanagement

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The year 2024 was another exceptional year at SNB Capital investment banking. Our talented team of investment bankers closed 24 transactions across our lines of business demonstrating the strength of our deep client relationships and the value we continue to add advising our clients on their strategic transactions. We continued our market leadership position in both Equity and Debt Capital Markets (with market share in excess of 50% and 70% respectively based on size of closed transactions) and have emerged as a visible M&A advisor. For the fourth year in a row, we won awards from Euromoney, Global Finance, Tadawul and Arqaam in recognition of the value we continue to add to our strategic clients, and the contribution to the effort of the continuous development of the Saudi Capital Markets. We led the ECM follow-on market closing 5 transactions that reignited products like fully marketed offering and accelerated bookbuilding that were absent for a while. We acted as global coordinators, financial advisors, lead underwriters, book runners and lead managers on visible transactions including: *. Government of Saudi Arabia/Saudi Aramco Fully Marketed Secondary Offering (SAR 42.1bn, the largest secondary market offering in EMEA region since the year 2000) *. Public Investment Fund/ Saudi Telecom Company Accelerated bookbuilding (SAR 3.86bn, the first KSA overnight and the largest ever ABB transaction in Saudi Arabia and MENA region) *. Saudi Manpower Solutions Company IPO (SAR 900m) *. MBC Group IPO (SAR 831m) *. Kingdom of Saudi Arabia largest ever intra-day US dollar bond offering ($12bn) *. The early redemption and simultaneous repurchase of KSA Government Sukuk program managed by the National Debt Management Center (the largest to date, SAR 63.1bn) *. The third drawdown under the Public Investment Fund EMTN program and its largest to date (US$5bn) *. Saudi National Bank Sustainable Sukuk (US$850m) and Additional Tier 1 Capital Sukuk (SAR 6bn) *. First ever US$ Short Term Sukuk issued on-shore in KSA for SNB Capital *. Saudi Aramco dollar bond issue (US$6bn) *. Merger of Qassim and Hail Cement Companies, the first public to public transaction in the sector *. Public Investment Fund acquisition of Saudi Iron & Steel Company (Hadeed) and the integration of Rajhi Steel to create the KSA steel national champion (officially closed in 2024) *. Abu Dhabi National Insurance Company (ADNIC) acquisition of Allianz Global 51% stake in Allianz Saudi Fransi; the first SNBC cross boarder M&A transaction in the insurance sector (officially closed in 2024) Our thanks and gratitudes to the distinguished teams at the Capital Market Authority and Saudi Tadawul Group and the Saudi Exchange for their unparalleled support throughout the year.

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Despite the recent Non-Farm Payroll (NFP) reports being lauded as "strong" and "solid," a critical underlying metric tells a different story. The Implied Hiring Rate has actually plummeted in the last two NFP reports, exposing a glaring disconnect between surface-level praise and deeper labor market dynamics. Is this time different?

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In this week's equity highlights we focus on the results from our newest equity risk monitor, which details Russell 1000 through the lens of the Axioma US5.1 equity models. https://lnkd.in/e-YNQapy #russell1000 #equityriskmodels

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In times of political uncertainty and shifting SEC regulations, asset managers face unprecedented challenges. During the FT Live’s Future of Asset Management North America conference, Mike Tae, my colleague and Co-President of Investor Communications Solutions, shared valuable insights on navigating these complexities. I'm delighted to highlight Mike’s perspective on staying ahead in this regulatory landscape. See how Broadridge is helping asset managers tackle these challenges and stay informed on the latest regulatory news impacting the industry: http://spklr.io/6041vorT #FTFOAM #RegulatoryInsights #FinancialServices

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