Institutional Money Is Moving Around for a Lot of Complex Reasons

Institutional Investor

“This is the story for the next five years,” said Weiss’s Jordi Visser, on the move from stocks to bonds.

From inflation to a potential recession, a number of complex factors are pushing allocators to rejigger their portfolios next year. But there’s also one simple reason for the move: Yields on almost risk-free government bonds are more than 4 percent, a level that seems magical compared to what’s been available — that is, almost zero — in recent years.

For investors, that means they finally have an alternative to holding so much of their portfolios in stocks — and obviously with far less risk.

The movement of money from stocks to fixed income may end up having profound consequences for the capital markets and the asset management industry. Continue reading...

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Andrew Healy, Partner
Water & Wall
212-625-2363
weiss@waterandwall.com

Important disclosures: Disclosures: This content (the "Insights Page") is provided by Weiss Multi-Strategy Advisers LLC ("Weiss"). The views expressed on the Insights Page are for informational purposes only and are subject to change without notice. Information on the Insights Page has been developed internally and is based on market conditions as of the date of the original post on the Insights Page from sources believed to be reliable. Nothing on the Insights Page should be construed as investment, legal, tax, or other advice and should not be viewed as a recommendation to buy or sell any security or adopt any investment strategy. Past performance is no guarantee of future results. Please consult your own advisers regarding business, legal, tax, or other matters concerning investments. Weiss has no control over information at any external site hyperlinked on the Insights Page. Weiss makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and has included hyperlinks only as a convenience. The inclusion of any external hyperlink does not imply any endorsement or ongoing monitoring by Weiss of any hyperlinked site. Investing in securities is speculative and involves substantial risk of loss.