Hannah Murphy

So important for Schroders to be part of this crucial Financial Times debate - 'How to reboot Britain's capital markets' - https://shorturl.at/MtqSv. Peter Harrison, Schroders Group Chief Executive, said: "The amount of money which is flowing into people's savings is nothing like sufficient to provide for them in retirement. But even when it gets into their pension pots it's then directed to low returning assets that are low risk." #investment #london #capitalmarkets #pensions #economicgrowth

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Scoop - Hargreaves Lansdown launches multi-asset index range with some help from BlackRock https://lnkd.in/evbdURZn The rise in popularity of index funds has become impossible ignore for one of the biggest champions of active fund management. #indexfunds #Assetmanagement #ETFS

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As the UK election campaign sets off at pace, joining the crucial contests in India and the US, the concept of 'security' will undoubtedly play a part. The UK is a key party involved by proxy in the wars in #Ukraine and #Gaza and its role is hugely important in these major geopolitical events. In addition, these conflicts significantly affect our economy, trade, energy consumption and migration patterns, as well as our moral compass. Geopolitics has become one of the key factors now taken into account by investment managers and wealth firms, when examining both opportunities and risks, particularly where China is involved. It was fascinating researching latest trends, with expert comment from former British Army chief of staff, General Sir Mark Carleton-Smith, Paul de Leusse of Sienna Investment Managers, a rising European player, the outspoken Dr. Jian Liang from Banque Internationale à Luxembourg (BIL), Yves Choueifaty from TOBAM, who is one of the most inspiring investment thinkers I have come across, and Natznet T. from S&P Global Market Intelligence, who offers a very detailed and thoughtful long-term view of geopolitical trends. Please read the article on Professional Wealth Management (PWM) and the Financial Times Wealth Management Hub https://lnkd.in/eCQk_5c6

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Watch this space: H2O Asset Management revealed in its annual report for 2020 that it was under investigation from the FCA. We're now in 2024 and it looks like British market regulators are about to conclude their case. There's talk of a pot of money to compensate investors - who would be offered to take a deal - and of the FCA considering whether a fine would be appropriate. https://lnkd.in/d7uxKDyi

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Really interesting piece on Citywire Wealth Manager by Ninety One fund manager and Hargreaves Lansdown investor Ben Needham. https://lnkd.in/eaSU6aVF He believes HL was totally right to reject the ‘cheeky’ private equity approach earlier this month, pointing out that if the firm listed today, it would be at a higher price than it currently trades on. And just imagine if the PE exit strategy is to relist at a higher price at some point and, to rub salt in the wound, the US is chosen as the fashionable place for the relisting. Just imagine!  #privateequity #UKstockmarket

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Critics may argue the traditional 60/40 model is outdated or ineffective in today’s market, writes Stuart Ritchie APFS, Chartered FCSI, managing partner at GSB. But are reports of its demise premature? Read Ritchie's full article for Money Marketing below. #FinancialPlanning #Investments #Portfolio https://lnkd.in/e6z3pW5K

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Rishi Sunak and Keir Starmer will not want to upset the tentative calm that has settled over markets after 2022's crisis, so are likely to avoid any Liz Truss-style fiscal experiments. With little to separate the two parties on the economy, and Labour anyway likely to win a landslide, investors are left to focus on inflation and Bank of England interest rates. Bond market calm is especially important to whoever becomes prime minister, with the government planning to borrow the second-highest yearly amount on record in 2024/25. My analysis on the UK election and markets: https://lnkd.in/eTzxGh5B

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Charles Paikert has these blunt comments about the recent unhappy experience by Goldman Sachs in the #RIA space. He points to the central argument - size of AuM - and finds it wanting. This is definitely a commentary where we would be interested in feedback, particularly from those who want to disagree. Jamie McLaughlin David DeVoe ECHELON Partners Chip Roame Stephen Harris Philip Harris Andrew Deane Rachel Fokes Theodora Viney Joseph Reilly #strategy #wealthmanagement #mergers https://lnkd.in/eu3iddV9

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My latest report in FinTech Magazine explores the journey of Worldcoin, the Sam Altman, Alex Blania and Max Novendstern founded crypto-project, created by Tools for Humanity and backed by Andreessen Horowitz. We explore how it works, and look at potential upcoming partnerships with Altman's OpenAI and PayPal. More below. #Crypto #Biometrics #AI

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It's been feast or famine when it comes to reporting on interest rates for what feels like the past 20 years. Interest rates crashed from 5.25% to just 0.5% between March 2008 and March 2009. The economy was in turmoil and the Bank of England was desperately trying to bail out the ship, slashing rates by as much as 150 basis points a month. We all thought it was a short-term measure. Then, after a mere 15 years where rates didn't move by more than 0.25 percentage points up or down for entire years, rates rocketed from 0.1% back up to 5.25% in 14 meetings. Fast forward to spring 2024 and people have been predicting that rates are about to tumble back down again to "sustainable" levels since Christmas. They say history doesn’t repeat itself, but it does echo. The main question seems to be whether the echo that’s heard now will be of the expectation of rapid change to never arrive, because what everyone thought of as 'normal' has - in fact - fundamentally changed, or that the Bank has waited too long and a rate-slashing frenzy is on the way.

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Published this today and, right on cue, Isda then published its independent report into the Credit Derivatives Determinations Committees and launched a market-wide consultation. Has implications for high yield/distressed credits even if you don't use CDS, so will give you the overview anyway (free to read by entering your email address). More to follow shortly and - as has been said to me - it is only the end of the beginning. Thanks to Carlos H. Pardo for insightful commentary.

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Great speech by LSEG CEO Julia Hoggett at #CityWeek2024 this morning, busting myths about listings, valuations and liquidity on London’s and UK’s capital markets. Really nice to hear some facts & figures on London’s performance vs New York too. #capitalmarkets

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Barclays has responded to our latest article. In it, an investor called out the bank for greenwashing by classifying as “sustainable finance” billions of dollars worth of deals for fossil fuel companies it was involved in last year. Andrew Harper, of investment manager Epworth, wasn’t alone. A number of investors we spoke to were concerned about the how the bank is funding fossil fuel companies with “sustainability-linked” loans and bonds that don’t tackle the main sources of planet-warming emissions. In its response to the article, Barclays said: “We believe in financing the real economy, helping our clients to reduce their emissions and the emissions we finance.” It also responded to the fact that it helped raise $41bn in sustainability-linked finance for fossil fuel companies last year by saying: “Allocating all of it to Barclays to generate a headline is plainly misleading.” We didn't. We said: “The $41bn figure covers the total value of the deals Barclays worked on alongside other banks. Barclays itself counts only the funding it is directly responsible for, which it said was $10.9bn across all sectors last year." Barclays full response is here: https://lnkd.in/gMpYSt5k

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While there has been plenty going on in the European #securitisation primary market, there was also a quirky story playing out in secondary last week. It's a cautionary #RMBS tale that underlines the importance of reading exchange notices. Four years ago, Atom Bank issued a UK RMBS called Elvet Mortgages 2020-1. It's performed well and the underlying collateral has paid down at quite a lick. As a result, the bonds will be redeemed in June under the clean-up call provision, according to an exchange notice published last Wednesday. "The prepayment rate on these deals is quite high," one trader observed. "I believe it took the market by surprise." Worse than that, some traders seem to have missed the memo, as the bonds continued to be traded after the exchange notice was published at prices that implied a call in September or December. "Obviously someone did not read the redemption notice," said a second trader. The mistake was quickly spotted, however, preventing other traders from cashing in. "We tried to sell our bonds too at the ridiculously high levels but failed," said the second trader. Subscribers can read our full coverage of the capital markets on IFRe or LSEG Workspace: https://lnkd.in/eZvUCbq8

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Gradually, the web of covers and complexity that surrounds Hamas funding, is starting to unravel #terroristfunding https://lnkd.in/euJsxMyh

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The proposal to cap the returns investors can make buying distressed emerging market bonds has failed to get through the New York state legislature but could the next UK government support similar changes to English law? Polls suggest the Labour Party will secure a hefty majority at the UK’s general election on July 4. One of the final acts of Labour’s last administration in 2010 was to provide debt relief to heavily indebted poor countries, saying private investors should give relief in line with official lenders. Sovereign debt lawyers caution that taking such unilateral action could result in a move away from English law, which is a popular jurisdiction for issuers, or have the unintended affect of making raising debt more expensive for emerging market countries. In March foreign secretary David Cameron said in the House of Lords: “The IMF advice and the Treasury advice is that if we legislate in this way, particularly unilaterally, it would affect the cost and availability of finance to other countries, and it may mean that more of these financial deals are written elsewhere in a less advantageous way than is currently the case.” Labour will publish its manifesto on Thursday. Full article here: https://lnkd.in/ewbzbQub

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Does a lack of data transparency in the private credit sector present a concentration risk? Some industry professionals have warned that LPs could be funding the same loans across several different private credit funds, meaning that they have less diversification in their portfolio than they think. Industry stakeholders are divided on the issue - read all about it on Alternative Credit Investor https://lnkd.in/exhjcKNP

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