Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Andrew Morris, managing director, Signature

8396

Comment: Letter from America

RELATED TOPICS​

Andrew Morris (pictured), managing director of Signature, a trading name of Rowan Dartington, on the current state of the markets and levels of company debt…

Due to a combination of the Jackson Hole gathering and hurricane Irene, all eyes have again been on the United States. The country appears to be holding its breath for the feared economic slowdown. With both Bernanke and Obama caught in a financial straightjacket with little or no wriggle room, there was almost an air of resignation hanging over the nation.
                                                                                                   
However, here’s something to cheer everyone up. Constituents of the FTSE 350, ex the financial sector, cut their debt by some £57bn over the last two years reducing their collective level of gearing to the lowest level since 1993. Such a position highlights the robust state many companies, both here and across the Atlantic, are in. Albeit, this does also reflect a level of caution amongst management teams, given the continuing uncertainty in the global economy. In the very short term such a position is very reassuring as certainly much of the Global selloff in equities 2008/09 was a consequence of companies being encouraged to have far too much debt on their balance sheets.
 
Balance sheet strengths bode well in challenging times and emphasise the hidden value in the current climate. Let’s therefore hope the fear of a recession is worse than the reality.

Latest News

Bloomberg and General Index (GX) have announced the expansion of their strategic collaboration which builds..
EFAMA has commented on today’s vote by the European Parliament in favour of a new..
Morgan Stanley Investment Management (MSIM) has announced the launch of the MS INVF Systematic Liquid..

Related Articles

Juan Nozal, Mapfre Asset Management
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024, in what he predicts will be an outstanding year for this asset class...
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024,..
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US are committed to implementing a variety of measures to address climate change and reach their net-zero goals, according to Cerulli Associates...
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US..
Lord Hollick, House of Lords
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with genuine independence from government and how they are held to account...
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with..
Rob Edwards, Morningstar
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed bag in 2023...
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by