Embracing change at our 16th annual Cymbria Day
On May 15th, Cymbria held its 16th annual Cymbria Investor Day at Koerner Hall. This year the Investment Team talked about how correctly identifying the benefits of change inside a business is what gives us the ability to buy future growth at a value price.
Click here to watch the video.
This week in charts
Data centres
Interest rates
Debt forecasts
Global website traffic
Silver
Lithium
Multifamily deliveries / construction
Office space vacancy
Japan’s 10-year yield tops 1% for first time in 11 years
In recent weeks, investors have increased their bets that the Bank of Japan will lift interest rates further and begin to reduce its purchases of government debt after it ended eight years of negative rates in March.
Benchmark 10-year borrowing costs in Asia’s largest advanced economy rose as high as 1.005 per cent on Wednesday, a level not seen since May 2013.
The central bank in March abandoned its policy of using purchases to cap 10-year borrowing costs, but has continued to buy government debt to avoid causing shocks to financial markets. Governor Kazuo Ueda has previously said the central bank had no immediate plans to change the size of its bond purchases.
Private Credit Has Too Much Cash and Not Enough Places to Put It
Private credit’s historic rise is creating a problem that most asset managers would love to have: too much cash in their coffers.
Dry powder, or the amount of money committed to private credit funds that has yet to be deployed, is at a record. That’s in part because demand for their capital from buyout firms remains tepid. What’s more, bank leveraged finance desks are increasingly seeking to poach back business. The result has been what some have called a ‘race to the bottom’ among private credit managers.
To win deals, managers in the $1.7 trillion industry are offering cheaper pricing and giving up key investor protections. They’re also keeping larger slices of financings for themselves, and even swooping in at the last minute to snatch business from the leveraged loan market.
In recent weeks direct lenders have offered some of the most aggressive financing terms ever seen in the market.
This week’s fun finds
Hot Sauce Review - Liquid Stoopid
Omaha, Nebraska is home to Berkshire Hathaway, but it's also where Tim purchased a bottle of Liquid Stoopid for the EdgePoint Review Crew. He told us that he requested the hottest sauce that was still flavourful and came back with this brain-melting bottle.
Here are some of our thoughts…
- Smells like: Fruit
- Tastes like: Pepper and chemicals
- “It gave me the hiccups” and “My face is numb!”
