Tikehau Capital CEO on the Interest Rate Environment

The video discusses the shift in the rate environment over the past year, highlighting the impact on global capital markets and liquidity pricing. It explores how investment models are adapting to higher rates and the importance of robust underwriting assumptions. The liquidity situation in Europe is examined, noting tighter bank lending conditions and opportunities for asset managers. Client concerns about market disruptions and adjusted risk appetites are also addressed.

What was the significant change in the rate environment over the past year?

• Rates have decreased significantly.

• Rates have increased significantly.

• Rates have become unpredictable.

• Rates have remained stable.

How has the shift in rates affected global capital markets?

• It has had no effect on liquidity.

• It has stabilized the cost of liquidity.

• It has increased the cost of liquidity.

• It has made liquidity cheaper.

What is a key consideration for asset allocators in the current market?

• Avoiding real estate investments.

• Pricing liquidity accurately.

• Focusing solely on public equities.

• Ignoring liquidity pricing.

What is the current state of bank lending conditions in Europe?

• They are unaffected by current rates.

• They are at an all-time high.

• They are similar to post-GFC levels.

• They are more relaxed than ever.

What are investors currently seeking from their portfolios?

• Short-term speculative gains.

• Stable, long-term compounding returns.

• High-risk, high-return ventures.

• Complete liquidity at all times.