Private equity returned a median annualized 15.2% over the 10-year period ended in 2023, versus 12% for the S&P 500 index.
Dry Powder
Opportunistic real-estate funds had $196.8 billion available at the end of last year, up from $179.9 billion at the end of 2020.
PCE Inflation
After peaking above 5.6% in 2022, core PCE inflation fell to 2.6% last June but then reaccelerated. The Fed wants to see PCE inflation fall back to its 2% target, but in December, officials projected that still might take until 2027.
Hybrid Bonds
All three major ratings firms provide equity credit for hybrid bond issuances, largely treating them as if they were made up of 50% equity—a boon to the issuer’s credit ratios and ratings. What makes the bonds equity-like is the option for companies to defer coupon payments, as well as the bonds’ ability to absorb losses in the event of a bankruptcy.
US RevPAR
The U.S. hotel industry reported record-high average daily rate and revenue per available room in 2024, but the country’s growth rate was its lowest since the declines of 2020. For the year (percentage change from 2023): Occupancy: 63 percent (flat), ADR: $158.67 (+1.7 percent), RevPAR: $99.94 (+1.8 percent).
Branded Residences
There are around 1,500 consumer-branded residences around the world, with half completed and half in development. That total is expected to exceed 3,700 by 2040.
Equity Funds Inflow
Investors poured $62.5 billion into U.S. equity mutual and exchange-traded funds in December, the highest monthly inflow on record.
Office Sales
The volume of office building sales increased to $63.6 billion in 2024, up 20% from 2023. That activity still pales compared with 2015 to 2019, when volume averaged $142.9 billion a year. But it marked the first increase since 2021.
Equity Risk
The equity risk premium, defined as the gap between the S&P 500’s earnings yield and that of 10-year Treasurys, turned negative in late December for the first time since 2002 and sat last week at negative 0.15 percentage point.
DC Luxury Homes
In recent months, wealthy political appointees, new members of Congress and business leaders have flooded the luxury real-estate market in Washington, D.C., scooping up multimillion-dollar properties in the nation’s capital and in nearby McLean, Va.