AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Signs of Financial Pressure in Asset Management
A decrease in asset revenue from 40 cents to 8 cents a day indicates a significant decline in asset value and productivity. The increase in energy prices has created immense financial pressure, leading to bankruptcies and increased M&A activities. The shift from debt to equity financing does not alleviate the capital destruction as the correlation between assets and underlying value persists, impacting capital capabilities. Despite not affecting income standards directly, the weight of this financial strain is evident in asset management.