The UAE’s Chimera Capital enters private credit market
Chimera Capital enters the private credit space: Our friends at Chimera Capital have launched a USD 2 bn global private credit fund with US alternative asset manager Alpha Wave Global, the company said in a statement (pdf) yesterday. The fund will primarily lend senior secured, floating-rate private loans to private companies in the US, Canada, UK, EU, and Australia. This comes as the global market share for private credit funds increases as they eat into banks’ market share amid an environment of high interest rates and aggressive monetary tightening, Bloomberg writes.
Goldman dims outlook for S&P 500 earnings growth on tough earnings season: Goldman Sachs has cut its growth outlook for S&P 500 companies’ earnings in 2023 from 3% to 0% as the economic slowdown pressures margins, Bloomberg reports. The forecast comes following a turbulent third quarter for companies listed on the benchmark index, which saw margins contract for the first time since the pandemic. Goldman is penciling in 7% growth for companies’ earnings-per-share this year, and 5% growth in 2024. The outlook is much worse if a recession hits sometime next year: Goldman forecasts S&P 500 companies’ earnings to fall another 11% in that scenario.
ESG debt is standing its ground amid global headwinds: The Institute of International Finance (IIF) expects USD 1.3 tn worth of ESG debt to be issued this year, down slightly from USD 1.5 tn in 2021, despite volumes of conventional debt issuance tanking on tightening financial conditions, according to a new report (pdf).
The ESG market has exploded this decade: The total market for ESG debt reached USD 4.5 tn in 3Q 2022, three times larger than two years’ prior, according to IIF figures.
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EGX30 |
11,444 |
+2.4% (YTD: -4.2%) |
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USD (CBE) |
Buy 24.28 |
Sell 24.37 |
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USD at CIB |
Buy 24.23 |
Sell 24.33 |
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Interest rates CBE |
13.25% deposit |
14.25% lending |
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Tadawul |
11,599 |
+0.7% (YTD: +2.8%) |
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ADX |
10,607 |
+1.2% (YTD: +25.0%) |
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DFM |
3,379 |
+0.9% (YTD: +5.7%) |
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S&P 500 |
3,807 |
+1.0% (YTD: -20.1%) |
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FTSE 100 |
7,300 |
-0.5% (YTD: -1.1%) |
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Euro Stoxx 50 |
3,709 |
+0.6% (YTD: -13.7%) |
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Brent crude |
USD 98.01 |
-0.6% |
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Natural gas (Nymex) |
USD 6.76 |
+5.7% |
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Gold |
USD 1,678.00 |
+0.1% |
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BTC |
USD 20,685 |
-2.0% (YTD: -55.0%) |
THE CLOSING BELL-
The EGX30 rose 2.4% at yesterday’s close on turnover of EGP 1.15 bn (5.8% above the 90-day average). Local investors were net sellers. The index is down 4.2% YTD.
In the green: GB Auto (+5.2%), Telecom Egypt (+5.0%) and Talaat Moustafa Holding (+4.7%).
In the red: Qalaa Holding (-0.4%), Palm Hills Development (-0.4%) and Ibnsina Pharma (-0.3%).
Asian markets are mixed this morning, with shares in China in the red and bourses elsewhere seeing decent gains. Markets in Europe and the US are broadly expected to open in the green later today.