Apples and Oranges: Understanding Lifetime Income Options
Secure lifetime income is a top wish-list item for defined contribution plan participants, and it has benefits for plan sponsors too. But there are very different ways to deliver it.
Climate-Focused Investing Two Approaches for Equity Portfolios
There's been a lot of focus, especially in the media, around things like renewable energy and electric vehicles. But if you think about the challenge of reducing emissions, we're going to have to do that across a diverse set of solutions, including things like heating and cooling, manufacturing, infrastructure, agriculture.
Breaking the ESG Barrier Empowering Credit Investors Through Better and Faster Data
A new approach to environmental, social and governance (ESG) research could ease investors’ frustrations with sourcing and evaluating the data required for objective credit analysis. Thanks to a surge in company reporting, ESG metrics can now be quantified and incorporated into analyses that were historically rooted in fundamental research alone.
Could Falling US Rates Elevate Emerging-Market Returns?
Emerging-market (EM) assets were resilient in 2023, gaining ground despite conflict in the Middle East, concerns over slowing economic growth in China, and the US dollar’s strength against other regional currencies. Now, with the Fed signaling rate cuts in 2024, the news could get better.
Private Credit Outlook: Evolution and Opportunity
Private credit has in a little more than a decade evolved from a niche asset class to a key component of a diversified investment portfolio. We think it will be even more important in 2024 as banks’ reluctance to lend widens the opportunity set for investors.
Investment Strategies for Generating Efficient Income
Bond yields are up—that’s good news for income investors, but secular forces still pose headwinds for inflation-adjusted returns. We think an efficient way to generate income is by carefully assembling mixes of interest-rate and credit building blocks—and incorporating private-market exposure for additional diversification and return potential.
Market Concentration in Magnificent Seven Distorts Index Exposures
US equity market returns have been disproportionately driven by the so-called Magnificent Seven (Mag 7) stocks this year. Their dominance has created style imbalances within large-cap benchmarks that deserve closer attention from investors.
Taking the Temperature of Healthcare Stocks
Healthcare stocks have underperformed the global market this year. But taking a closer look under the sector’s hood reveals a more complex picture. In key industries, earnings growth forecasts are healthy and valuations look attractive.
Investing Lessons from Climate School, Class of 2023
We’ve always intended for the unique collaboration between AllianceBernstein (AB) and Columbia University to serve the broader asset-management industry. Asset owners and managers alike are eager to explore the complex issues of climate change and its potential effect on investments and investment decision-making.
US Equities: Which Stocks Have Outperformed in a Weaker Market?
Weakness in US equity markets since July reflects ongoing uncertainty about the macroeconomic outlook. Despite the concerns, stocks with quality and defensive features have performed relatively well and could help portfolios surmount shaky conditions ahead.
4Q: 2023 Capital Markets Outlook
Following a strong first half of 2023, third-quarter returns were more challenged across almost all asset classes. One outlier was high-yield debt, which often serves as a way to de-risk equity exposures when stocks are under pressure.
Diversity of Thought A New Approach to Equity Alpha
The world is becoming an increasingly diverse place, especially the societies that we live in and we invest in. It’s not just about social equity that companies need to focus on diversity, equity, and inclusion; it’s really about business fundamentals.
Cashing Out: Getting Clients off the Sidelines
Bonds may be back, but many clients are still sitting on piles of cash and CDs. What’s not well known is that returns for money markets and CDs could decline precipitously if—or when—the Fed cuts rates. To help clients think ahead, it’s time to start repositioning portfolios to help adhere to the old adage of “buy low and sell high.”
Register now to hear where AB’s fixed-income portfolio managers are finding compelling opportunities.
Investment-Grade Corporates: A Tale of Two Markets
Investors are accustomed to getting a snapshot of the market by looking at the latest index statistics. But today, average spreads and yields for investment-grade corporate bonds are deceptive. A look under the hood reveals that intermediate-maturity corporates are a much more compelling opportunity than long-maturity ones.
Opportunity Knocks: Investing in Dislocation
Tight lending standards and rising yields, along with concern about an approaching turn in the business cycle, have put opportunistic credit in the spotlight. But what, exactly, does opportunistic credit mean? Here’s how we look at it—and what we think it may offer investors.
The View from Muniland: Once in a Generation
It feels like Groundhog Day, with yet another challenging quarter for muni investors. The index was down about 4%, bringing year-to-date returns to –1.4% for the year. So what happened in August and September?