Ares Management CEO Arougheti on Private Markets and Concerns for 2019

Ares Management CEO Arougheti on Private Markets and Concerns for 2019

Assessment

Interactive Video

Business

University

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The video discusses the strong U.S. economy and the growth of private markets, which are now outpacing public markets. Post-financial crisis, investors have shifted towards illiquid assets, valuing yield and taking on illiquidity risk. The private credit market has evolved significantly, with increased competition but still offering attractive returns. Interest rates and market volatility are key concerns, with rising rates potentially benefiting floating rate assets but also posing risks if they rise too quickly.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason for the positive sentiment in the market according to the speaker?

The strong fundamental footing of the U.S. economy

The decrease in private market investments

The decline in public market growth

The lack of liquidity in asset classes

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What shift in investment strategy occurred after the financial crisis?

A move towards more liquid assets

A decrease in private credit investments

A focus on short-term investments

An increased willingness to take on illiquidity risk

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has the private credit market evolved over the past six years?

It has emerged as a distinct asset class

It has remained unchanged

It has seen a decline in investor interest

It has become less competitive

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential concern when interest rates rise too quickly?

Increased cash flow

Enhanced market stability

Constrained cash flow leading to stress

Higher returns without risk

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the speaker suggest about market shocks like the one in Q4 2018?

They are unlikely to occur again

They have no impact on market structure

They provide opportunities for certain investment strategies

They are always detrimental to investors