Author: cvernon

Is the High Yield Market Expecting a Rise in Defaults?

May 2016

Given the depressed oil prices earlier in the year coupled with the recent credit rally, we have gotten many questions from clients about the future direction of default rates, particularly for high yield bonds. In early February, the question was about how high default rates would rise as a result of low oil prices and their subsequent impact on high yield issuers, particularly those in the energy sector. Now, as credit has rallied, investors are wondering if expected default rates are too pessimistic in light of the rally and rise in oil prices. This newsletter contemplates the current implied default rate for high yield bonds and how successfully it has predicted actual default rates, all in an effort to further examine the state of the high yield market. Ultimately, the goal is to provide our clients with guidance on how current conditions in the market could impact their portfolios over both short and long term investment horizons.

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Is Now the Time to Buy Emerging Market Equities?

March 2016

Over the last five years, emerging market (“EM”) equities have struggled to keep up with their developed market (“DM”) counterparts. Losses were extended into 2015, when this asset class lost 14.9%. Given the poor performance, it is not surprising that emerging market equities currently offer the most attractive valuations. The S&P 500 and MSCI EAFE trade at roughly 7–10% above their ten-year averages while the MSCI EM index trades 17% below. Given these valuations, when should investors expect a pick-up in performance?

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Secure Choice: The Next Chapter in the U.S. Defined Contribution Story

February 2016

In this latest Marquette Defined Contribution paper, we build on the similar themes of governance and evolving best practices by emphasizing that positive challenges lie ahead for trusted stewards of defined contribution plan assets; particularly, as defined contribution assets continue to grow, new types of DC plans emerge, best practices evolve, and an increasingly diverse population is gaining access to defined contribution plans. Consequently, those of us that are entrusted as fiduciaries have an opportunity to place segments of our country’s workforce on a steadier path towards retirement readiness.

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2016 Market Preview

January 2016

Similar to previous years, we offer our annual market preview newsletter. Each year presents new challenges to our clients, and 2016 is off to a volatile start with equity markets down significantly, oil dropping below $30, the Fed poised to further increase interest rates, and fears of a China slowdown rippling through the markets. However, other headlines will emerge as the year goes on, and it is critical to understand how asset classes will react to each new development and what such reactions will mean to investors. The following articles contain insightful analysis and key themes to monitor over the coming year, themes which will underlie the actual performance of the asset classes covered.

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2015 Investment Symposium Briefing

This video summarizes Marquette’s 2015 Investment Symposium on October 16, 2015, including the opening sessions and flash talks, which covered the current market environment, emerging investment themes and investment stewardship challenges in the year ahead. The new flash talk session format is designed to brief attendees on more popular topics in less time and encourage timely conversations with investment consultants.

Flash talk sessions discussed: