Code, Capital, and Carbon: Digital Assets and Sustainable Investing

Digital assets offer underappreciated opportunities to advance sustainable investing goals, from expanding financial inclusion to aiding the energy transition.

Kendal Cehanowicz, Portfolio Manager, Morgan Stanley Global Liquidity, discusses the latest messaging from the Federal Reserve about monetary policy and the implications for short-term investors.

Global earnings growth is exceptional, but much of it is concentrated in AI infrastructure and energy, while cash generation has lagged and margins are already near historic highs. Can corporate profits withstand higher inflation, and can the AI earnings boom endure as new supply comes online? The International Equity Team examines the durability of today’s earnings backdrop and why resilient quality compounders may offer a compelling opportunity.

Funding Agreement Backed Note (FABN) issuance has accelerated sharply in recent years, prompting the NAIC to propose enhanced disclosure requirements. This insight takes a closer look at FABN issuance, comparing the financial profiles of FABN issuers with the broader life insurance industry to assess whether their use has resulted in meaningfully higher risk. We also flag where recent regulatory and rating agency changes may be creating new portfolio opportunities within the CLO space.