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News

24 Jan 2023 - 10k Words

By: Equitable Investors

10k Words 

Equitable Investors

December 2022


December's chart are largely lifted from an Equitable Investors slide deck. We can't really avoid taking a look at inflation and interest rates - so that is where we start with charts from Bloomberg showing the expectation for a sharp inflation correction in the US in 2023 (and a view on why based on Academy Securities' view of inflation drivers). Central bank policy rates remain, in the main, below inflation rates, as @charliebilello tabulates. CY2022 is almost gone and we can look back at capital markets and see sharp declines in the availability of funding - global equity capital raising volumes down 65% and Australasian down 54% year-on-year, using dealogic data. High yield debt issuance plunged even further. Crunchbase reckons that in global venture capital markets, seed funding dropped by a third, early stage halved and late stage is down by 80% compared to November 2021. Finally, Cliffwater shows us how private equity has outperformed since 2000 (in a period that coincides with historically low interest rates) and Refinitiv's Venture Capital Index gives us an idea of how alternative assets may have faired in 2022 if they were priced daily.

Implied inflation (starts Dec 9)

Source: Bloomberg

Inflation Drivers (estimated)

Source: Bloomberg, Academy Securities

Global Central Bank Policy Rates (as of Dec 8, 2022)

Source: Compound/@charliebilello

Global Equity Capital Market Volumes ($USb)

S

Source: WSJ, Dealogic

Australian Equity Capital Market Volumes ($USb)

Source: WSJ, Dealogic

High Yield Debt Capital Markets

Source: WSJ, Dealogic

Global Venture Capital Funding

Source: Crunchbase

Composite Private Equity Performance (US State Pensions)

Source: Cliffwater

Refinitiv Venture Capital Index Over 5 Years

Source: FT

December Edition


Funds operated by this manager:

Equitable Investors Dragonfly Fund


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