This Week in Alternative Investments - May 12th, 2023

Willem De Kooning’s “Orestes” sold for $30.9 million at Christie’s as part of the SI Newhouse Collection


Bite sized market updates

The S.I. Newhouse Collection brought in $177.8 million at Christie’s. The sale was led by Francis Bacon’s “Self-Portrait” and Willem De Kooning’s “Orestes”.

Mortgage rates look set to decrease later in the year. With inflation numbers falling, experts are expecting mortgage rates to follow.

Crypto exchange Bittrex filed for bankruptcy. This comes just weeks after the SEC accused the company of running an unregistered securities exchange.

The private credit market is benefitting from the current borrowing crunch. With regional banks struggling, there are additional opportunities for private credit lenders.

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Market Updates

There were seven lots from the S.I. Newhouse Collection that sold for more than $10 million. Led by the sale of Francis Bacon’s “Self-Portrait” for $34.6 million, the collection of 16 paintings brought in a total of $177.8 million. Other big sales included Willem de Kooning’s “Orestes” for $30.9 million and Pablo Picasso’s “L’Arlésienne” for $24.6 million.

Real estate industry experts are expecting mortgage rates to fall in 2023. The new CPI numbers that show inflation falling have led’s chief economist to anticipate 30-year fixed mortgage rates falling in the late summer and early fall, perhaps back into the 5% range. With rates currently hovering around 6.5%, such a dramatic fall would certainly be a welcome development for both potential buyers and potential sellers.

Weeks after being sued by the SEC, crypto exchange Bittrex filed for bankruptcy. The SEC previously charged the company with operating an unregistered securities exchange. The company had already ceased U.S. operations but will continue its global operations uninterrupted. The company claims that the crypto assets of its U.S. customers are “safe and secure”.

Private credit should remain an attractive option for investors in 2023. With 46% of banks reporting “tightening lending standards”, private lenders are seeing increased opportunities. Many funds have a lot of dry powder to work with, and are seeing much more favorable loan terms than this time last year.

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