NEWSLETTER of May 22, 2026

The following content has been added at finexpert:

Deloitte
CFO SURVEY FRÜHJAHR 2026
Despite the German government’s investment packages, which were intended to boost the economy in 2026, there are currently no signs of an economic recovery. On the contrary, whilst business prospects were at least still stagnating in autumn 2025, German companies are now suffering from the effects of the war in Iran and weak economic growth. The results of the latest CFO Survey for spring 2026 show that the outlook has deteriorated, particularly for small and medium-sized enterprises. The survey, which was conducted between 16 April and 7 May 2026, involved 164 chief financial officers from major German companies. >more

KfW Research
GERMAN PRIVATE EQUITY BAROMETER Q1 2026
Investor sentiment in the German private equity market has remained largely unchanged since the end of last year. The business climate indicator for the segment of the private equity market focused on investments in established companies rose slightly by 1.4 points to -15.1 points in the first quarter of 2026. The indicator for the current business situation fell slightly by 3.6 points to -14.7 points, whilst the indicator for business expectations rose by 6.4 points to -15.5 points. >more

KfW Research
GERMAN VENTURE CAPITAL BAROMETER Q1 2026
Following the slump in sentiment at the end of 2025, the business climate in the German venture capital (VC) market stabilised again at the start of 2026. The sentiment indicator rose slightly by 6.2 points to -25.9 points in the first quarter of 2026. Despite this slight increase, however, the VC business climate remains subdued and is well below its long-term average. The slight rise is attributable to an improved assessment of the current business situation by early-stage investors, whilst business expectations remained largely unchanged. The fact that expectations are somewhat more pessimistic than the assessment of the current situation suggests that early-stage investors do not anticipate any significant improvement over the next six months either. >more

HSBC
BEYOND BONDS: WHY HEDGE FUNDS CAN DESERVE AN ALLOCATION IN PORTFOLIOS
Investors over the past few years have had to grapple with elevated geopolitical challenges and uncertainty both over the direction and level of interest rates across the globe. While equity markets have attained record highs, albeit buffeted by the occasional bouts of volatility the same cannot be said for fixed income markets. From the Pleasantville of near-zero rates for much of the 2010s, to the shock of sharply rising rates in the early 2020’s, the current monetary policy cycle has proven to be more opaque than many investors have been used to. This lack of clarity we have seen for much of the last three years on the path for interest rates has further stagnated the performance of an asset class, which had already spectacularly lost its status as the “safe” asset in global balanced portfolios during 2022. With fixed income allocations potentially no longer meeting the needs of investors, it is fair for allocators to seek exposure in alternative asset classes that can. Hedge funds could provide the ‘lost’ characteristics of fixed income which investors are looking for as part of their wider portfolio construct. >more

WHEN THE TAX BREAK BREAKS: CEO PAY AND TURNOVER FOLLOWING TCJA
Ana M. Albuquerque, Ilona Babenko, Benjamin Bennett, and Dragana Cvijanovic
2026
We examine how firms adjust CEO compensation following the Tax Cuts and Jobs Act (TCJA), which eliminated the tax deductibility of performance-based pay. Comparing firms with different levels of performance-based pay, CEOs with unaffected executives in the same firm-year, and U.S. firms with international firms, we find that CEO performance pay and total compensation decrease following the TCJA relative to the control group. The effects are stronger for more cost-sensitive firms and those requiring firm-specific human capital. Consistent with a moral hazard model, we also find that by raising the after-tax cost of compensation, TCJA created significant labor market disruptions. >more

BEYOND THE BLIND POOL: HOW PRIVATE ASSET-BACKED STRUCTURED PRODUCTS RESHAPE RISK AND RETURN
Alex Billias, Zoe Buck, Josh Lerner, TzuHwan Seet, and Cody Wilson
2026
Private markets have become a significant component of investor portfolios, offering the potential for enhanced risk-adjusted returns relative to public assets. However, structural features like illiquidity, irregular cash flows, information asymmetries, performance dispersion, and constrained access to private markets complicate portfolio construction and risk management practices. This paper examines the rise of private asset-linked structured products, particularly collateralized fund obligations (CFOs), as a mechanism for transforming portfolios of private assets into securities with distinct risk-return profiles. We analyze how these structures approach diversification, utilize tranching, alter cash flow timing, and address regulatory capital considerations; while also highlighting important limitations to these products. Drawing on academic literature, industry evidence, and quantitative analysis, we evaluate the role of CFOs within a broader portfolio context, showcasing potential benefits and structural complexities. The paper contributes a consolidated framework for assessing the investment implications of this emerging segment of structured finance. >more