Equity markets have provided strong performance over the last couple of years which is leading to increased uncertainty and potential for a market rebasing event. Kevin Russell discusses the 6 key mega trends within the financial markets that are creating systematic alpha opportunities resulting in continued alternative performance into 2022 and beyond.

These include:

  • Explosion in size of credit market created relative to inventory offered by banks and broker dealers
  • The undeniable growth of special purpose acquisition companies (SPACs)
  • Environmental Transition Economy: Changes in regulatory landscape and shifts in capex
  • Bank disintermediation from private credit
  • Increasing attractiveness of trade finance as an effective alternative to traditional fixed income
  • China transition from beta to alpha: Impending ability to borrow and short stocks in the onshore markets

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