Monthly macro update: May 2021

Company earnings growth is materializing better than expected, particularly within cyclical sectors. Almost one in four companies have surprised on the upside, helping drive the S&P 500 to its best month since November.

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Monthly macro update: April 2021

At the turn of the year, we discussed how record stimulus and low borrowing costs presented a great environment for equities. We’re pleased to see our view playing out, with equities having another good quarter.

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US pension briefing – March 2021

Pension discount rates maintained their upward momentum, closing the month yet another 0.22% higher which should yield another 2-3% liability decrease for a typical pension plan.

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Monthly macro update: March 2021

The economic environment is still positive for equities, and we continue to believe any inflationary pressure that comes from re-opening economies will be short-lived given still high unemployment and structural deflationary forces, such as an aging population.

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US pension briefing – February 2021

Pension discount rates maintained their upward momentum, closing the month yet another 0.25% higher which should yield another 2-3% liability decrease for a typical pension plan. At 3.0%, this is the highest rates have been since the end of March 2020, when credit spreads had significantly widened and boosted these discount rates.

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Monthly macro update: February 2021

We have been talking for some time about the benefits of low borrowing costs, and we are now seeing companies act. Debt issuance has been significant throughout January, while over twice as much equity has been raised year to date compared to the same point in 2020.

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US pension briefing – January 2021

Pension plans welcomed increasing interest rates in January with discount rates trending up toward the mid-2% range. This translates to a liability decrease of 2-3% for a typical pension plan.

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