Making Sense

Kari Vatanen, head of Asset Allocation and Alternatives at Elo, one of Finland's largest pension funds, discusses the evolving landscape of investing. He highlights the significance of hedge funds and illiquid assets in portfolio diversification amidst market uncertainties. Vatanen shares insights on Elo's asset allocation strategy, emphasizing a balanced 60-40 portfolio approach. The conversation also touches on the challenges of valuing illiquid assets and the need for transparency and collaboration in asset management, especially during inflationary periods.

Patrick Hargreaves, the CEO of AKO Capital and PM of the AKO Capital Global Fund, dives into the firm's quality investment philosophy and the importance of identifying 'patterns of quality' in companies. He explains how specialized teams in market research, forensic accounting, and data science work alongside analysts to enhance investment decisions. The discussion also highlights the role of machine learning in investment processes while emphasizing the enduring significance of human judgment. Hargreaves shares insights on long-term strategies and learning from past mistakes.

Chris Andrew, the Head of Market Structure and Regulatory Change in EMEA, brings his expertise in European capital markets to the discussion. He and Eloise Goulder explore the impressive 38% surge in European trading volumes, driven by geopolitical shifts and sector dynamics. They highlight the potential for European equities to outperform the US market. The conversation also dives into the urgent need for reforms to integrate capital markets across Europe and the challenges of creating a savings and investments union to enhance security and funding.

Christian O’Donnell, Managing Director at J.P. Morgan, dives into the rapidly evolving world of investment-grade private credit. He highlights how this market differs from public credit, showcasing its unique benefits for corporations and the growing demand for capital. O’Donnell discusses tailored debt solutions, the critical role of financial institutions in navigating risks, and how the landscape is changing with more public investors entering the space. Expect insights into market dynamics and strategies for capital-intensive businesses.

Jake Pollack, head of North America Credit Trading & Global Credit Financing at J.P. Morgan, shares insights on the evolving private credit market. He discusses the impact of economic uncertainty on private credit strategies and the growth of diverse asset classes. Pollack highlights the resilience of private credit amidst market volatility and explains the benefits of co-lending strategies. The conversation also delves into the emergence of private credit collateralized loan obligations and the complexity of navigating this dynamic financial landscape.

The U.S. continued to add jobs at a steady pace in May, and the unemployment rate remained at 4.2% for the third straight month. Looking ahead however, factors including tariffs and immigration policy could lead to a slowdown in the labor market. What does all this mean for the health of the consumer as well as the wider economy? Join chief U.S. economist Michael Feroli and Lauren Brice from the U.S. Rates Sales team as they unpack the latest numbers.     This episode was recorded on June 6, 2025.  This communication is provided for information purposes only. Please visit www.jpmm.com/research/disclosures for important disclosures. JPMorgan Chase & Co. or its affiliates and/or subsidiaries (collectively, J.P. Morgan) normally make a market and trade as principal in securities, other financial products and other asset classes that may be discussed in this communication.  This communication has been prepared based upon information from sources believed to be reliable, but J.P. Morgan does not warrant its completeness or accuracy except with respect to any disclosures relative to J.P. Morgan and/or its affiliates and an analyst's involvement with any company (or security, other financial product or other asset class) that may be the subject of this communication. Any opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not indicative of future results. This communication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. J.P. Morgan Research does not provide individually tailored investment advice. Any opinions and recommendations herein do not take into account individual circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies. You must make your own independent decisions regarding any securities, financial instruments or strategies mentioned or related to the information herein. Periodic updates may be provided on companies, issuers or industries based on specific developments or announcements, market conditions or any other publicly available information. However, J.P. Morgan may be restricted from updating information contained in this communication for regulatory or other reasons. This communication may not be redistributed or retransmitted, in whole or in part, or in any form or manner, without the express written consent of J.P. Morgan. Any unauthorized use or disclosure is prohibited. Receipt and review of this information constitutes your agreement not to redistribute or retransmit the contents and information contained in this communication without first obtaining express permission from an authorized officer of J.P. Morgan.  Copyright 2025, JPMorganChase & Co. All rights reserved. 

In this discussion, Keith Canton, the Head of Americas Equity Capital Markets, and Gaurav Maria, the Head of U.S. Equity-Linked Capital Markets, delve into the IPO market's recent performance. They analyze the decline in IPO volumes, driven by market volatility and geopolitical tensions. The duo highlights innovative strategies within the convertible market and discusses the emerging sector diversity in IPOs. With cautious optimism, they explore factors that could spark a resurgence, including refinancing opportunities and market resilience.

In this discussion, Brian Fitzsimmons, Head of North America Rates Securities Trading at J.P. Morgan, shares his expertise on the U.S. Treasury cash-futures basis trade. He explains the intricacies of this arbitrage strategy and its relevance amid market volatility. The conversation dives into the dynamics of leverage, regulatory impacts on treasury demand, and the implications for financial stability. They also explore the challenges posed by increased Treasury issuance and the importance of managing liquidity and counterparty credit risk.

In this engaging discussion, Patrick Griffin, a Managing Director at JP Morgan, shares his expertise in navigating the bank loan market. He highlights how this market differs from other credit avenues, emphasizing borrower-lender relationships. Key insights include current trends of declining mergers and increased refinancing, alongside strategies for CFOs to optimize capital raising. Patrick also discusses the importance of flexibility in credit agreements and building robust bank relationships to enhance financial outcomes.

Mark Fleming-Williams, Head of Data Sourcing at CFM and creator of The Alternative Data Podcast, joins a dynamic discussion with Eloise Goulder from J.P. Morgan. They dive into the value and challenges of alternative data in finance, detailing effective methods for data assessment and the growing competition in the field. Fleming-Williams shares insights on the evolution of alternative data, highlighting credit card data's significance and how AI is transforming data analysis. They emphasize the importance of relationships in navigating this complex landscape.