Latest news with #WellingtonManagement
Yahoo
2 hours ago
- Business
- Yahoo
May jobs report: Why labor supply is 'under pressure'
The labor market shows signs of softening but not retreating as tariff pressures mount. Employers added 139,000 jobs in May, topping forecasts of 126,000, while the jobless rate held at 4.2%. EY chief economist Gregory Daco and Wellington Management fixed income portfolio manager Brij Khurana join Morning Brief to break down how businesses may respond to rising costs and slowing job growth. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Reuters
20-05-2025
- Business
- Reuters
Moody's downgrade ripples through bond market, causes worries for stocks
NEW YORK, May 20 (Reuters) - Moody's U.S. debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields to put pressure on stocks that are trading at elevated valuations. Moody's decision to downgrade the U.S. debt rating by a notch late last week due to mounting government debt and rising interest expenses has rekindled fears of a broader investor reappraisal of U.S. sovereign debt, which could drive up borrowing costs across the economy. "Every time something like this happens, investors just think maybe they should shift a little more out of the U.S.," said Campe Goodman, fixed-income portfolio manager at Wellington Management Company. Benchmark 10-year yields, which influence mortgage rates as well as borrowing costs for companies and consumers, rose to over 4.5% early on Monday but the selloff then moderated. Yields move inversely to prices. On Tuesday, the bond market selloff continued, with the 10-year yield last seen at 4.48%, slightly above where it closed on Monday. Longer-dated 30-year yields rose more sharply, hitting a high of over 5% on Monday, the highest since November 2023, and flirting with that level again on Tuesday. Higher yields have repercussions for stocks, analysts and investors say, as they represent higher borrowing costs for companies as well as greater investment competition from fixed income. Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, said a rise in 10-year yields beyond 4.5% could be a headwind for stocks. "I think what markets are grappling with, is if the 30-year is breaking out, does that mean the rest of the curve is next?" Miskin said. Over the past few years, stocks have come under pressure during some instances when Treasury yields moved above 4.5%, with sharply rising yields often negatively correlated with stock performance. One prominent example is late 2023 when the S&P 500 slid sharply as the 10-year yield ascended to 5%. In a note on Monday, Morgan Stanley equity strategist Michael Wilson said 4.5% on the 10-year yield has been "an important level" for equity market valuation over the past two years, with stocks tending to face valuation pressure when 10-year yields breach that threshold. The price-to-earnings ratio for the S&P 500, based on earnings estimates for the next 12 months, was at 21.7 as of Monday, well above its long-term average of 15.8, according to LSEG Datastream. Wilson, however, said while a break above 4.5% in the 10-year yield "can lead to modest valuation compression ... we would be buyers of such a dip," he said in the note, citing the recent U.S.-China trade truce as positive for equity markets. The downgrade has come as Republicans in Congress seek to approve a sweeping package of tax cuts aimed at boosting economic growth that at the same time could add trillions to the $36 trillion U.S. public debt pile, exacerbating concerns highlighted by Moody's over the U.S. fiscal trajectory. It also follows a detente in the trade war sparked by President Donald Trump's imposition of tariffs on U.S. trade partners. While tariffs are largely seen as being a drag for the economy, a recent trade breakthrough with China had sparked market optimism that their impact would be more muted than feared. "You move from fears of stagflation, which was low growth and tariff-led inflation, to a better growth backdrop but probably not a better inflation or fiscal backdrop, as you still have this big tax bill getting pushed through," said Ross Mayfield, investment strategist at Baird. Federal Reserve officials on Monday said the Moody's downgrade could have repercussions for the U.S. economy by raising the cost of capital. The ratings cut was unlikely to trigger forced selling of Treasuries, as major fixed-income indices only require securities to maintain an investment-grade rating or have no specific sovereign rating guidelines, analysts at BofA Securities said in a note on Monday. Still, it could cause the yield curve to steepen, they said, with long-dated yields rising due to worsening investor sentiment around the long-term prospects of U.S. debt. "There could be a time when the bond market gets quite worried that we're continuing to stimulate an economy that's not weak," Goodman said.
Mint
16-05-2025
- Business
- Mint
Peak XV Partners nets over ₹1,200 crore after exiting stake in Porter, clocking 11-fold return
Mumbai: Peak XV Partners netted over ₹1,200 crore after exiting its investment in logistics company Porter's latest funding round, a person familiar with the matter said. The profit was an over 11-fold return on investments of ₹116 crore across multiple rounds over the past decade. 'The company has grown tremendously since our Series A investment in 2015 to now become worth over a billion dollars. After a decade-long partnership with the team, we have exited our investment and express our heartfelt gratitude to the founding team, Uttam Digga, Pranav Goel, and Vikas Choudhary, for being wonderful partners," a spokesperson for Peak XV said, without disclosing the exit value. Porter declined to comment on the stake sale. The Bengaluru-based company joins a growing list of unlisted firms including Rebel Foods, Healthkart, Finova, K12 Techno and Cloudnine Hospitals where Peak has sold partial or full stakes. The venture capital firm has also sold stakes in companies that were headed for public listing or has pared stakes in already listed firms such as Ixigo, Awfis, Go Digit General Insurance, Blackbuck, Zomato, Mamaearth, Truecaller, Indigo Paints, Five Star Business Finance and MobiKwik. Peak has generated about $3.6 billion in cash exits over the past five years and over 30 portfolio companies have gone public. In 2024 alone, it recorded exits to the tune of $1.5 billion, exceeding the amount it invested in the timeframe, the person added. Also Read | Wellington Management may lead Porter's $100 million round in logistics push Porter's round, which was led by Kedaara Capital and Wellington Management and valued the company at $1.2 billion, had a mix of primary and secondary stake sales, with others such as Kae Capital also exiting. Porter said last week it plans to use the funds raised to expand operations, build teams, and develop technology and operational excellence while continuing to set up a greener logistics network aligned with India's decarbonisation efforts. Peak plans Meanwhile, Peak is in early talks to raise up to $1.4 billion by the end of the current financial year for its first India-SEA (Southeast Asia) fund since the split with parent Sequoia Capital. The VC firm expects at least two dozen companies to tap the public market in the next 12-18 months, according to the person. Also Read | Mint Explainer: Can Uber shake up the market Porter dominates? The investment firm expects to back more funds launched by former company executives. Investing in funds is a tried and tested way for new VC and private equity firms to enter a new market. When global investors first started investing in India, they made several investments in Indian fund managers to understand the market before they started making direct investments. Partners at Peak have been investing since 2006 and had access to the US market when they were part of Sequoia Capital. However, this access ended in June 2023, when Sequoia split into three globally. The India and Southeast Asia team became Peak XV Partners. In the past year, the venture capital firm has invested in a handful of seed and early-stage US funds, varying in size from $1 million to $10 million. For the past two years, Peak XV has been building its US presence to regain the access it had as part of Sequoia. One key reason is to help its portfolio companies that are based in the US or have links to the US market. Also Read | Choppy markets take toll on pre-IPO deal talks It has a portfolio of more than 400 companies across financial services, software and artificial intelligence (AI), and consumer internet, and across stages—seed, venture and growth. Almost 150 companies have ties to the US market—either for market access or founded by Indian origin people incorporated in the US.
Bloomberg
15-05-2025
- Business
- Bloomberg
A Trillion-Dollar Fund Manager on Climate Investing in 2025
Low-carbon tech investments reached $2.1 trillion last year. But with the whole world trying to work out how to navigate US President Donald Trump's unpredictable policy agenda, is 2025 still a good time to invest in climate tech? This week on Zero, Akshat Rathi interviews Greg Wasserman, head of private company climate investment at Wellington Management that oversees more than $1 trillion in assets. Wasserman has to make investment decisions here and now about companies and technologies—weighing risks and opportunities in a volatile market.
Bloomberg
14-05-2025
- Business
- Bloomberg
Zero: How to Invest in Climate in the Trump Era
Low-carbon tech investments reached $2.1 trillion last year. But with the whole world trying to work out how to navigate US President Donald Trump's unpredictable policy agenda, is 2025 still a good time to invest in climate tech? This week on Zero, Akshat Rathi interviews Greg Wasserman, head of private company climate investment at Wellington Management, which oversees more than $1 trillion in assets. Wasserman has to make investment decisions here and now about companies and technologies — weighing risks and opportunities in a volatile market.
