U.S Existing Home Sales Fall, Alaska Air Profit Forecast
Apr 18, 2024
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Analysts discuss US existing home sales, economic indicators, Alaska Air earnings, and Netflix outlook. Insights on housing market challenges, commercial airline trends, private jet preferences, and Blackstone's financial performance.
Higher rates pose concerns for asset managers, potential activity return in late 2024/2025.
Deep dives
Main Ideas related to Blackstone's performance and concerns
Blackstone, a major asset manager, reported slower pace of deal exits, impacting earnings. Fee growth was decent, but not double-digit. Key themes such as private credit and wealth management showed resilience and growth. However, limited deal activity affected realizations. Jonathan Gray mentioned a potential return of activity more towards late 2024 or 2025.
Focus on Private Credit Business at Blackstone
Blackstone's private credit business has been strong. It accounted for about a third of their assets, reaching over $300 billion. Despite some challenges from the syndicated loan market rebound, private credit remains a significant growth area with potential to tap into a $40 trillion addressable market.
Implications of Higher Rates on Blackstone's Business Units
Blackstone expressed concerns about higher rates impacting their key business units, limiting valuations, and increasing borrowing costs. Jonathan Gray suggested that exiting investments might face delays, anticipating potential return of activity by late 2024 or 2025.
Outlook for Other Major Asset Managers in the Industry
Blackstone's performance may set a tone for other asset managers. Private credit expected to hold up well for companies like Apollo and Ares, while equity realizations and exits could pose challenges. Blackstone's strategic moves in the insurance business might positively impact KKR, whereas KKR already disclosed light realizations for the quarter.
Drew Reading, Bloomberg Intelligence U.S Homebuilding Analyst, discusses existing home sales data. Dana Peterson, Chief Economist at the Conference Board, discusses the latest data from US Leading Economic Index. George Ferguson, Bloomberg Intelligence Senior Aerospace, Defense, and Airlines Analyst, discusses Alaska Air earnings. Mark Douglas, President and CEO of MNTN, previews Netflix earnings after the closing bell. Paul Gulberg, Bloomberg Intelligence Senior Equity Analyst, discusses Blackstone earnings.