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Some investors on Wall Street are concerned about potential inflation and interest rate rebounds in 2025. Money managers like Greg Lippmann of LibreMax Capital are betting on interest rates rising, while Mina Pacheco Nazemi of Barings is advising clients to invest in infrastructure projects as an inflation buffer. Tim Schmidt of Prudential Financial is cautious about rising rates impacting corporate borrowers, and Will Smith of AllianceBernstein is looking to international bonds for better value amidst high-yield bond price increases. Sonal Desai of Franklin Templeton doesn't expect inflation to return to the Federal Reserve's 2% target by the end of 2025 due to high fiscal deficits and proposed policy changes. [Extracted from the article]

The Wall Street Journal's article reports that the Dow Jones Industrial Average maintained pre-Christmas gains, while bond yields continued to rise. Investors showed interest in buying shares of companies that had recently declined, such as Dollar Tree. Despite concerns about inflation and government deficits, equities are on track for strong annual gains. Globally, stock markets showed mixed performance, with Japan's Nikkei 225 rising and Turkey's central bank making its first rate cut in over two years. Bitcoin retreated from approaching $100,000 after MicroStrategy announced plans for a significant increase in its bitcoin-buying program. [Extracted from the article]

The article discusses the increase in delinquencies on auto loans in the United States, with more Americans falling behind on their car payments. Despite this trend, Wall Street investors are not concerned and are actually snapping up bonds tied to car loans, anticipating a strong economy will keep delinquency rates in check. The surge in popularity of auto bonds is attributed to high interest rates and demand from money managers and insurers with cash to invest. Delinquencies are concentrated among lower-income borrowers, but analysts believe the issues will not spread if the economy remains stable. [Extracted from the article]

Wall Street is introducing new financial products like SRTs, NAV loans, and capital-call ABS bonds, backed by loans to fund managers. These innovations reflect the increasing prominence of private-debt and private-equity funds in the financial market. While these products offer lucrative opportunities for banks and investors, skeptics draw parallels to past market excesses, urging caution in their adoption. The complexity and potential risks associated with these new products raise concerns among analysts and regulators, highlighting the need for careful scrutiny and monitoring as they evolve. [Extracted from the article]

Investment giants such as Apollo Global Management, BlackRock, Capital Group, KKR, and State Street are competing to launch private-credit exchange-traded funds (ETFs) and other retail products. These funds would allow individual investors to access the $1.7 trillion market for loans made by nonbanks on Wall Street. However, the challenge lies in converting rarely traded private loans into shares that can be easily bought and sold. Regulators are also struggling to establish guidelines for the private-credit market, which is projected to double in size to $3.5 trillion by 2028. [Extracted from the article]

The article explores Kyle, Texas, one of the fastest-growing cities in the U.S., which faces significant challenges due to extreme heat and limited water resources. Topics discussed include the city's rapid expansion and its impact on water scarcity, efforts to manage heat and water shortages, and the increasing strain on infrastructure and resources due to the population boom.

Corporate bond prices and issuance are recovering after a recent market downturn. The rebound in stocks has boosted corporate debt markets, leading to tighter credit spreads and increased investor confidence. Despite the recovery, bankers are advising caution and recommending that companies wait for the right window to issue debt. The recent debt sales from companies have helped reassure investors that the stock turmoil is a normal market downturn rather than the start of a prolonged slump. [Extracted from the article]

The Plymouth County Retirement Association, a small Massachusetts pension fund, has achieved impressive performance rankings in recent years by making bold investment decisions. The fund's director of investments, Peter Manning, made an early bet that interest rates would rise, which helped the fund weather market volatility. The fund outperformed larger peers by reducing exposure to Treasurys and public stocks and reinvesting in infrastructure, private equity, and inflation-protected debt. Despite the current market rally, Manning remains committed to avoiding big losses rather than chasing high returns. The fund's success has made it a trendsetter in the industry, despite its relatively small size. [Extracted from the article]

Oaktree Capital, a U.S. investor, has taken control of FC Inter Milan, the Italian soccer champions, after the team's Chinese owners failed to repay a rescue loan. Oaktree had provided a loan during the Covid pandemic to keep the team afloat, and they are now capitalizing on that loan to seize control of the club. This move comes as Inter Milan has experienced success on the field, winning this year's Serie A title. Oaktree aims to ensure the long-term stability and prosperity of the club. This is part of a trend of large U.S. private fund managers investing in international sports clubs to diversify their portfolios. [Extracted from the article]

Private equity firms such as Apollo, Ares, Blackstone, and KKR are expanding into asset-based lending, targeting the U.S. consumer. This form of finance includes auto loans, credit cards, mortgages, and loans backed by equipment. If private funds continue to grow in asset-based finance as they did in corporate lending, it could reach $900 billion in the next few years. Private funds are hiring teams to distribute asset-based finance to their investment clients, and they are also partnering with insurance companies and using complex instruments to buy risk from banks. The trend is still in its early stages, and banks still provide the majority of loans. However, private funds hope to capture about one-quarter of the estimated $25 trillion to $40 trillion asset-based finance market. The regulatory response to private credit has been mixed, and there are concerns about the potential risks it poses to the financial system. [Extracted from the article]

Shares of Avis Budget Group have plummeted in recent weeks, resulting in a paper loss of over $1 billion for hedge fund management firm SRS Investment Management. SRS had concentrated a significant portion of its $11 billion portfolio in Avis stock before the decline. The trade initially proved successful due to increased travel and car prices after the pandemic, but now falling car prices and the devaluation of Avis's fleet have caused the stock to tank. SRS's flagship fund has lost 8% this year, in contrast to the wider stock rally. [Extracted from the article]

Ian Jacobs, a descendant of the Reichmann real-estate dynasty, is defying the trend by investing in near-vacant San Francisco office buildings. Jacobs, who once apprenticed under Warren Buffett, has secured $75 million in commitments from relatives and wealthy families to purchase office space in San Francisco. Despite the challenges facing the city's real-estate market, Jacobs aims to buy 3 million square feet of office space at prices significantly below market value. His strategy is to hold onto the properties until technology companies return to the city. [Extracted from the article]

At the start of the year, many European leveraged finance investors expected the record breaking issuance of 2006 to give way to a rebalancing of risk. They were soon proved [...]

The Multidisciplinary Association for Psychedelic Studies (MAPS) affiliate, MAPS Public Benefit Corporation, has raised over $100 million in a Series A private stock sale. The funds will be used to support the final stages of the organization's application for regulatory approval to sell MDMA (Ecstasy) as a treatment for post-traumatic stress disorder. This fundraising comes amidst a wave of investments in psychedelic treatments for mental illnesses that are difficult to treat with conventional drugs. Other companies, such as Atai Life Sciences and Compass Pathways, have also secured significant investments for their psychedelic medicine development. The hope is that these treatments can help millions of patients, but the expensive regulatory approval process poses a challenge for startups in the biopharmaceutical industry. The investors in MAPS PBC Series A include organizations like Helena and venture-capital firm Vine Ventures, as well as foundations funded by hedge-fund managers Joe Samberg and Steven Cohen and his wife, Alex Cohen. MAPS PBC has completed clinical trials for MDMA and submitted a new drug application to the FDA, with a decision expected in the coming weeks. If approved, MDMA would be rescheduled by the DEA for prescription medical use. The organization has also rebranded as Lykos Therapeutics. [Extracted from the article]

China is changing the way debt crises in developing countries are handled, which is causing concern among Wall Street and Western powers. China has become the largest lender to developing countries, giving it the ability to set its own rules. This new reality is making debt crises longer and more unpredictable. Western governments and investment firms have traditionally decided how emerging-market debt is restructured, but China's influence is challenging this. The article highlights specific cases in Zambia and Sri Lanka where China's approach to debt restructuring differs from Western practices. [Extracted from the article]

Banks in the United States are using synthetic risk transfers to sell complex debt instruments to hedge funds and private-equity firms in order to reduce regulatory capital charges on loans. These risk transfers are expensive for banks but offer lucrative returns for investors. U.S. banks have recently entered the market to ease their regulatory burden, issuing a record quantity of risk transfers. Private-credit fund managers, such as Ares Management and Magnetar Capital, are active buyers of these deals, signaling a shift in the finance industry where alternative investment firms are becoming increasingly important. [Extracted from the article]

This article from the Wall Street Journal provides a list of 10 science-fiction books that explore various futures for artificial intelligence (AI). The books cover a range of themes, including sentient machines, government overthrow, economic disruption, and the potential replacement of humanity. The list includes classic works such as "I, Robot" by Isaac Asimov and "Do Androids Dream of Electric Sheep?" by Philip K. Dick, as well as more recent titles like "Klara and the Sun" by Kazuo Ishiguro. The article invites readers to share their own recommendations and highlights the intersection of AI with other fields, such as medicine and art restoration. [Extracted from the article]

Private funds, including hedge funds and private equity firms, are increasingly becoming the main lenders as interest rates rise. This trend has been happening for over a decade, with alternative investment firms attracting money and talent away from banks. Recently, private-credit fund managers have been financing large loans for American corporations, leading regulators to create new rules for private fund managers. While this shift towards private credit has raised concerns about concentration of economic activity and lack of visibility into potential risk bubbles, it also offers advantages such as better covenants and faster intervention in times of financial stress. [Extracted from the article]

Keywords: wsjfinance; wsjfinance-markets; Banking; Banking/Credit; Financial Services; Drug/Substance Use/Abuse; Political/General News; Society/Community; Mood Disorders; Health EN wsjfinance wsjfinance-markets Banking Banking/Credit Financial Services Drug/Substance Use/Abuse Political/General News Society/Community Mood Disorders Health N.PAG N.PAG 1 07/14/23 20230712 NES 230712 Demand has exploded for his practice, which treats traders, fund managers and bankers who battle mental-health problems When titans of finance get addicted to drugs and alcohol, they sometimes end up on the couch of Dr. Sam Glazer. Alcohol dependence is the most common condition Glazer treats, while widespread addiction to other substances ebbs and flows, he said. [Extracted from the article]

Keywords: wsjfinance; wsjfinance-markets; Banking; Commercial Banking; Banking/Credit; Financial Services; International Banks; Regulation/Government Policy; Regulatory Bodies; Corporate/Industrial News EN wsjfinance wsjfinance-markets Banking Commercial Banking Banking/Credit Financial Services International Banks Regulation/Government Policy Regulatory Bodies Corporate/Industrial News N.PAG N.PAG 1 03/24/23 20230321 NES 230321 Deal would write down more than $17 billion of the bank's riskiest bonds Graph: Credit Suisse is one of the largest issuers in the AT1 market. There are about $254 billion AT1 bonds outstanding and the securities are often banks' most actively traded bonds because of their large size, according to data from Lazard Frères Gestion. [Extracted from the article]

With Mexico's decoupling from Latin America becoming more pronounced, the country's corporate debt is finding its way back into a growing number of crossover portfolios. As a result, new paper [...]

Charles Ergen is using $EchoStar Corp. and DISH Network Corp., his two private firms, to acquire $800 million of loans and bonds in DBSD North America Inc. and TerreStar Networks Inc., two satellite companies that have gone to bankruptcy, in order to trade them for controlling interests and control of the broadband spectrum they have. In this he is competing with Phil Falcone and his Harbinger Capital L.P., who has built his own wireless network with a $3 billion investment.

Company cut earnings forecast by more than 60% weeks after borrowing $600 million from the banks' investment clients; audit committee says it is investigating a whistleblower letter. [Extracted from the article]