Latest Stories

The Challenge of Constructing a Defensive Portfolio in the Current Market

By Zhiwei Ren | January 28, 2016

As of last Friday, 1/22/16, the S&P 500 Index was down almost 7%, German Dax down 7%, Japan Nikkei down 10%, and the Shanghai stock exchange index down 17%. These are extreme moves in a very short time frame. What is market trying to tell us? And how should we navigate this market?

Market Prices or Economic Fundamentals?

By David O'Malley | January 25, 2016

After another volatile week for the financial markets, equities and energy prices ended up after starting the week by marking new lows for the year. I got to thinking about the possibility that this market selloff could create a slowdown in economic activity.

Interest Rate Forecasts Continue to Overshoot Predictions

By Mark Heppenstall | January 21, 2016

Seven years after the crisis, predictions for higher interest rates in the United States have yet to materialize. This week’s chart displays a recent history of interest rate projections from economists compared to actual rate levels realized one year later.

Penn Mutual Asset Management’s Economic and Market Review for 2015

By Mark Heppenstall | January 20, 2016

The U.S. economy has been one the few bright spots across the globe, as most other developed and emerging market economies performed below expectations.

Stock Valuations and the Fed

By David O'Malley | January 18, 2016

Last week, I was asked to comment on an article in the Wall Street Journal that suggested investors have been accepting higher levels of risk in their investments in a quest for higher returns. The article held that this means many assets are overpriced, and the Fed’s actions in raising interest rates will cause those prices to fall.

Can Airlines Prove to be a Good Oil Hedge?

By Greg Zappin | January 14, 2016

In addition to consumers and a variety of industrial users, no group benefits more from lower oil prices than the airline industry. About 20% of an airline’s costs are fuel related, which is down about 700 basis points from a year ago, but still material.

2016 Off to a Shaky Start

By David O'Malley | January 11, 2016

The first few trading days of 2016 have seen U.S. equities put in their worst performance to start a year ever and their worst week since 2011.

Are Co-Investments a “Free Lunch” for LPs?

By Trevor M. Williams | January 7, 2016

More and more institutional investors consider co-investments an important part of their overall private equity portfolios. According to a September 2015 survey, a vast majority of LPs have targeted or plan to target co-investments and see the structure as an attractive way to access private assets.

2015 Lessons Learned: 3 Takeaways for Investors

By Mark Heppenstall | January 4, 2016

Here are a few key lessons investors learned (again) during 2015. Today also marks a key milestone for our company and our investment team as we enter the private market with the launch of a private fund. The fund marks our entrance into the private market and is an outgrowth of our firm’s depth and expertise as fixed income managers.



Disclosure Statement

This blog post is for informational use only. The views expressed are those of the author, Dave O’Malley, and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

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Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

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