Institutional Investor (August 14)
“A public market downturn and an abundant supply of private equity stakes have culminated in an unmissable opportunity for secondaries investors.” Favorable “supply/demand imbalances and market dynamics” have arisen due to “the dramatic outperformance of private equity thanks to lagged marks and flat or marginally down valuations in 2022,” causing “asset owners to become overweight PE as public equity markets declined materially.” Pensions, endowments, foundations and other asset owners have become “forced sellers of private equity stakes to return to their strategic weights,” and “because of illiquidity, overhang, supply/demand imbalance, and forced selling, buyers require a material discount to transact.”
Tags: Asset owners, Discount, Downturn, Endowments, Forced selling, Foundations, Illiquidity, Imbalances, Market dynamics, Opportunity, Outperformance, Overhang, Overweight, Pensions, Private equity, Secondaries investors, Supply, Valuations
Marketwatch (July 14)
“Only 9% of all existing mortgages in the U.S. were taken out with a rate of above 6%,” with a majority of mortgages at rates below 4%. As a result, “the supply of new homes has been severely constrained by this imbalance…. New listings — a measure of how many sellers were putting up their homes for sale — were down 27% in early July versus a year ago.”
Tags: 4%, 6%, 9%, Constrained, Existing mortgages, Homes, Imbalance, New listings, Sale, Sellers, Supply, U.S.
Seeking Alpha (April 5)
“Investors were taken by surprise on April 2nd when news broke that OPEC+…announced unexpected cuts in output. This move came even in spite of a previously rosy forecast for the supply and demand balance that OPEC made public…. Investors would be wise to see this as a bullish development for any company that benefits from higher oil prices. But in particular, the exploration and production companies could be very appealing to consider at this time.”
Tags: Appealing, Bullish, Demand, Exploration, Forecast, Investors, Oil prices, OPEC, Output, Production, Supply, Surprise, Unexpected
Oilprice.com (December 26)
“Although the EU embargo and the EU-G7 price cap on Russian crude oil at $60 per barrel didn’t immediately roil the oil market – although traders were concerned about a possible demand hit from slowing economies – uncertainty is growing over how the bans on Russian imports will affect supply balances over the next few months.”
Tags: $60, Bans, Barrel, Crude oil, Demand, Economies, Embargo, EU, EU-G7, Imports, Oil market, Price cap, Roil, Russia, Supply, Traders, Uncertainty
Barron’s (June 27)
“Russia’s first default on its foreign debt in more than 100 years is the latest sign that the sanctions… have consequences,” but it’s a “symbolic win.” Energy prices remain the biggest impact of sanctions. “Oil prices aren’t coming down as long as Western powers are working to wean themselves off Russian supply. Faster inflation and rising interest rates, meanwhile, are bringing the global economy to its knees.”
Tags: 100 years, Consequences, Default, Energy prices, Foreign debt, Impact, Inflation, Interest rates, Oil prices, Russia, Sanctions, Supply, Symbolic win
Reuters (June 6)
“Even though supply disruptions in many parts of the world are severe and policy solutions are challenging, Western governments do have the opportunity to reverse the rising cost of food through the simple scrapping of biofuel mandates. This would remove a very large non-food demand for crops and turn the current grain shortage to a surplus, easing the pressure on inflation.”
Tags: Biofuel mandates, Crops, Demand, Disruptions, Food, Governments, Grain shortage, Inflation, Opportunity, Solutions, Supply, Surplus
Oilprice.com (November 18)
“The real reason that Big Oil won’t raise production is a matter of simple economics. Keeping the supply tight is just too good for the bottom line…. In fact, according to figures from Deloitte LLP, oil explorers in the United States are making more money now than at any other point in the more-than decade-long history of the nation’s shale revolution.”
Tags: Big oil, Bottom line, Decade, Deloitte, Economics, Money, Production, Shale revolution, Supply, Tight, U.S.
Bloomberg (November 1)
“China’s economy showed signs of further weakness in October as power shortages and surging commodity prices weighed on manufacturing, while strict Covid controls put a brake on holiday spending.” The purchasing mangers’ index shows “the economy is under pressure from both the supply and demand side.”
Tags: China, Commodity, Covid, Economy, Manufacturing, October, PMI, Power shortages, Prices, Spending, Strict, Supply, Surging, Weakness
South China Morning Post (October 18)
Coal prices have “more than tripled in a year to near historical highs” and look poised to keep climbing, driven by a coal shortage that could threaten the global economic recovery. “Blackouts could spread from China and India to all the emerging economies still mostly reliant on coal. As supply can’t be ramped up in the near term, the shortages could worsen as energy demand rises with winter’s arrival. That may trigger another emerging-market crisis.”
Tags: Blackouts, China, Coal, Demand, Economic recovery, Emerging-market crisis, Energy, India, Prices, Reliant, Shortage, Supply, Threaten, Tripled, Winter
The Economist (October 9)
“Spending has come roaring back, as governments have stimulated the economy and consumers let rip. The surge in demand is so powerful that supply is struggling to keep up. Lorry drivers are getting signing bonuses, an armada of container ships is anchored off California waiting for ports to clear and energy prices are spiralling upwards. As rising inflation spooks investors, the gluts of the 2010s have given way to a shortage economy.”
Tags: Consumers, Container ships, Demand, Economy, Energy, Gluts, Governments, Inflation, Investors, Ports, Powerful, Roaring, Signing bonuses, Spending, Supply, Surge
