Invesco

With recessionary fears still dominating the outlook, investors looking to dip their toes into private credit should consider senior secured loans, which offer compelling relative value and added risk mitigation, Invesco said.

A BlackRock bitcoin ETF could add an extra $100 million in daily demand for the cryptocurrency, pumping up the price. If US regulators approve the product as expected, analysts expect big tailwinds for the entire crypto ecosystem.

There are now more than 22,000 cryptocurrencies on the market, but most have small market capitalisations and unclear use cases, according to a recent Invesco report. The blockchain technology underpinning them, on the other hand, could change the infrastructure of finance.

Small cap investing has considerable upside, which the long-term returns data show. But many small caps are less than quality grade, and the managers picking them can be rife with bias.

New data from bfinance and Invesco sees Australian investors and sovereign funds reducing exposure to growth assets in favour of private markets.

Senior secured loans act as an important inflationary hedge in times of rising inflation according to Invesco’s chief investment officer.

One part of the market that is benefitting from inflation and interest rate increases is private debt; senior secured loans, in particular, have returned 4.8 per cent over the past two years.

Debt assets may be de jour, but the income they produce is fraught with peril if it doesn’t include the kind of diversity senior secured loans provide.