- Vincent Spotlight
- December 15th - This Week in Alternative Investments
December 15th - This Week in Alternative Investments
Bite sized market updates
Mortgage rates fell as the Fed signaled 2024 rate cuts
Lionel Messi’s World Cup jerseys sold for $7.8 million
Epic Games won its antitrust lawsuit against Google
Private credit is getting more competitive
Plus: Bitcoin bonds, diamond dust authentication, climate tech investments and more
WatchCharts Market Index
Thomson-Reuters VC Index
Freddie Mac 30 Year Fixed
Crazy: Arrived Launched a Fund
First time investors & long-time millionaires are flocking to Arrived.com — a fractional real estate investing platform backed by world-class investors like Jeff Bezos.
Arrived already has $123M+ in property value, 500K+ registrants, and $3.5M+ in dividends paid.
And they just launched a new product.
Smart Humans Podcast
Smart Humans explores the world of alternative investments. From Venture to Collectibles, Real Estate to Art and beyond - we discuss a new world of investment opportunities and the catalysts that impact their demand.
In this episode of Smart Humans, Slava Rubin talks with Republic’s Kendrick Nguyen about equity crowdfunding and the future of crypto.
Mortgage rates have been heading back down (Freddie Mac)
The 30-year fixed mortgage rate dropped below 7% for the first time since August. It is the seventh straight week that rates have dropped, and with the Fed signaling that three rate cuts are coming in 2024, it is likely that they will continue to drop. They also see four cuts in 2025 and three in 2026, though anything that far out should be taken with a grain of salt. In any case, a lower interest rate environment will be a boon to a stagnant real estate market and other alternative assets that flourished before the recent rate hikes.
A set of six match-worn Lionel Messi jerseys sold for $7.8 million. They were from last year’s World Cup, when Messi led Argentina to a championship. It was the highest sale at auction for any sports memorabilia this year and sets a record for any Messi memorabilia. There were some hopes that it could break the all-time record for any jersey, but it fell short of the $10.1 million record set by an NBA-finals Michael Jordan jersey last year. Still, it speaks to the demand for one-of-a-kind items linked to iconic performers and iconic moments.
After a three year battle, pre-IPO company Epic Games won its antitrust lawsuit against Google. The maker of the popular game Fortnite alleged that Google’s app store practices violate state and federal law, and a California jury agreed. Both Google and Apple take a cut of revenues generated by apps in part by forcing users to use their payment systems, which harms third-party developers. This isn’t the end of the fight, though, as Google is planning to appeal and Epic’s similar lawsuit against Apple is still ongoing. Still, the victory is a major milestone for Epic Games, which is one of the most valuable private companies in the world.
As competition increases, private credit lenders are seeing lower yields. As private credit has taken off in the past couple of years, it is no surprise that the landscape has gotten more crowded. With originators fighting over high-quality opportunities, borrowers can take advantage and negotiate better rates, lower origination fees and higher leverage ratios. Private credit also could be negatively affected by a lower interest rate environment, as borrowers could have other, better options if capital markets loosen.
Research and Insights from the Vincent team
More stories worth checking out
The world’s first Bitcoin bonds look set to launch in 2024 after receiving regulatory approval in El Salvador - another sign of the maturing Bitcoin market.
Dust, an authentication company that marks items with a traceable diamond dust, raised $40 million to bring its technology to a sports memorabilia market that needs more reliable authentication methods.
Sandbrook Capital raised $1.5 billion for its inaugural energy-transition infrastructure fund, as clean power takes on greater importance in the world.
Pitchbook released its Q3 Global Real Assets Report which showed fundraising declining by 80% compared to 2022, underscoring how tight capital markets have become this year.
Auction house Phillips saw its losses double in the UK in 2022, and given the further slowdown in art auction sales in 2023, their financial position may be precarious.
Alts giant Blackstone released their Taylor Swift-inspired holiday video, and it’s….something.
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