| The US economy hits a soft patch |
| Prudential Fixed Income |
| A year into the US recovery from the “Great Recession” of 2007-2009, recent signs of a “soft patch” or slowdown in the pace of the recovery have unnerved financial markets and precipitated downgrades in economic growth outlooks by a number of forecasters. This paper puts the current US slowdown in context, examining the factors leading to this “soft patch,”and lists some fixed income strategies that may make sense in this environment. (more) |
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Investing, market trends |
| Setting a new course: institutional investing after the crisis |
| Prudential Investment Management |
| As fears of a replay of depression-era economics begin to fade into memory, institutional investors have benefited from a sharp recovery across many financial markets. Rebounding markets have rewarded all types of investors, ranging from those who largely left their investments in place to those who opportunistically invested in depressed sectors. However, as institutional investors look ahead, the strong rebound of financial markets coupled with the prospects for a modest, and perhaps fragile, economic recovery is placing institutional investors in a difficult position to chart a course that will meet their needs over the next several years. (more) |
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| Equity |
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| Turbulent teens ahead? |
| Quantitative Management Associates |
| After a tough decade, what should investors look forward to - or fear - in the next 10 years? Will the stock market go back to its usual historical return of about 10% versus zero in the decade just past, or should investors expect something higher or lower, and why? (more) |
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| Fixed Income |
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Greece, thanks. And Estonia, welcome! |
| Prudential Fixed Income |
| It's been ugly in Europe as of late. Fiscal profligacy, a market crisis, then a massive bailout, with lamenting by both those being bailed out as well as by those doing the bailing. Is it really all so bad? Of course it is, at least for the near-to-intermediate term: those on both sides have to pay more and get by with less. Looking further out, however, there may be some important silver linings for investors. This brief paper covers the origins of the recent crisis and then looks at the potential upside for the Eurozone going forward. After all, plenty of ink has already been spilled discussing the negatives. Interested in more information? Watch video highlights or download the white paper. |
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| Emerging markets and the new world order |
| Prudential Fixed Income |
| Most emerging markets economies performed comparatively well during the global credit crisis of 2007-2009. Formerly, economic, monetary, or political crises -- some self-inflicted, some externally-induced -- had kept emerging markets countries from truly and permanently emerging as key contributors to the global economy. The global credit crisis that began in 2007 and lasted into 2009 was a welcome departure from this pattern. Decades of hard-fought economic and political reforms finally paid off, helping emerging markets countries outperform in the recent global economic downturn. This paper discusses the factors that we believe have contributed to, and will continue to sustain, the outperformance of emerging economies in coming years. Against this resilient backdrop, the prospects for emerging markets debt remain favorable. (more) |
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| The fate of the U.S. consumer |
| Prudential Fixed Income |
| From time to time, we all find ourselves in denial. Much of the time, this is due to a failure of the imagination. In 2008, the world stood aghast as the pillars of the financial world crumbled before our eyes. The collapse brought into focus the underlying problems in the US economy, problems which, in hindsight, were only too obvious. The topic for today is the US consumer, and the question, scarcely a year after the 2008 market crash, is: Are we in collective denial once again? (more) |
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| The sweet spot is still sweet today |
| Prudential Fixed Income |
| What a rally we saw in the high yield market in 2009! Historically, the US high yield market has generated total returns and volatility that have fallen in between investment grade bonds and stocks. This intuitively makes sense: because high yield issuers are below-investment grade and thus riskier credits, their bonds should theoretically provide more return, and exhibit more volatility, than investment grade bonds. At the same time, because of their stated coupon payments and expectation of principal repayment at maturity, high yield bonds should theoretically provide less return, and exhibit less volatility, than equities. (more) |
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| Real Estate |
| Revisiting the case for commercial real estate |
| Prudential Real Estate Investors |
| The fallout from the credit market crisis and severe global recession in late 2008 and early 2009 has taken a heavy toll on commercial real estate. Yet, despite real near-term challenges, there is a compelling case for private real estate in a diversified portfolio today. This report looks at the arguments for investing in commercial real estate today, along with some of the risks and challenges investors will likely face over the next few years. (more) |
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| Real Estate Securities Market Review & Outlook |
| Prudential Real Estate Investors |
| Global real estate securities posted a drop of 1.6% (USD) during the month of June, comprised of a 5.1% drop in North America, gains of 0.8% in Europe and 0.6% in the Asia Pacific region. Real estate securities have bested equities for the month, quarter, year-to-date and over the trailing year. Following gains from the lows established in spring 2009, property shares still remain considerably below their prior highs. (more) |
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| Global real estate outlook |
Prudential Real Estate Investors
| U.S. quarterly (July 2010): The near-term path for the commercial real estate market is clouded amid concerns that nascent economic growth in the U.S. may be stalled, but prospects for the sector remain bullish over the longer term. There is an accelerating inflow of capital coming from investors that are attracted by the sector’s improved outlook, signs that prices have bottomed and the foreclosure crisis will not be as widespread as feared, and prospects for more-attractive returns compared to other investment options. (more) |
| Latin America quarterly (July 2010): Latin American economies rebounded in the first half following their poor 2009 performance. Although transaction activity remains anemic, improved confidence and recovering demand is evident in the property markets. Demand for space is growing in segments such as Mexico’s industrial market and Brazil’s retail market. (more) |
| European quarterly (July 2010): As the economic recovery gains ground, prospects for Europe's real estate markets are improving. Investment activity continues to grow, with retail sector transactions dominating deal flows. Despite wider pressures on the banking system, debt markets are showing signs of life and risk appetite is gradually returning. However, economic forecasts remain downbeat and the rebound in prime capital values halted in the second quarter, consistent with the idea of a bumpy recovery. (more) |
| Asian quarterly (July 2010): Brisk exports and growing domestic consumption spurred Asia’s economy in the second quarter. Labor markets in the region saw continued improvement, helping to increase demand for commercial real estate space. Rents of class-A office space in the region appear to have bottomed, while robust tenant demand has created a favorable environment for owners of retail properties. (more) |
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