SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the publication of its second annual DCM Investor Survey, a survey of 111 global institutional investors. The survey found continued growth in the space, with portfolio allocations to debt expected to double this year.
“Debt has remained a favored asset class among institutional investors who are keen to chase returns despite the macro backdrop of inflation, geopolitics and the pandemic,” said Bob Petrocchi, Co-Head, SS&C Intralinks. “Portfolio allocations to Debt Capital Markets (“DCM”) assets are expected to more than double this year compared to 2021, while expectations on DCM valuations over the next 12 months are split between rising and falling.”
The report was produced in association with Institutional Asset Manager.
Key findings from the 2022 DCM Investor Survey:
- Portfolio allocations to DCM assets have grown from an average of 16 percent in last year’s survey to an average of 36 percent this year.
- Most survey respondents expect a change in DCM valuations over the next 12 months, but the direction expected is divided almost equally between rising and falling.
- Private debt has become the preferred subclass of choice for investors, followed by public bonds and investment-grade credit, with non-performing loans (NPLs) and distressed debt regaining ground.
- Investors expect a surge of sustainable debt issuance in the next 12 months, and most anticipate increasing their allocations.
- Respondents flagged macro factors of concern such as inflation, overvalued assets, and excessive financial leverage among their top risk priorities, with a resurgence of COVID-19 at the bottom of the list.
- Faster due diligence is the top technology priority, followed by better valuation and improved workflow.
SS&C Intralinks is a pioneer of the virtual data room, enabling and securing the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed over U.S. $34.7 trillion worth of financial transactions on its platform.
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.