Jeetu Kataria

Because All Liquidity is NOT the Same, Private Credit is MORE Liquid than Liquid Credit (gasp, well in some regards). Participating in the excellent Institutional Investor program in Abu Dhabi (thank you to Nouri Verghese, Alex Beveridge and Camilla Nagel) yielded important takeaways about liquidity in private credit investing. I claim that investors often overweight liquidity relative to risk adjusted returns because I’ve heard them balk (much less now than ever before) at “locking up” capital, even if private credit actually offers superior risk adjusted returns. In Abu Dhabi we explored the proposition that private credit offers as much or more “income” liquidity without greatly impairing “exit” liquidity. That’s a mouthful and I’ll explain below. “Income” liquidity refers to income. Cash-in-pocket is liquidity. Income is liquidity.  It helps to meet expenses and build cash balances. Would you feel more liquid with a bigger salary and less with a smaller one? I would. In terms of frequency, alternative credit assets offer the same income liquidity as an allocation to liquid fixed income because private credit assets pay interest at least as frequently as bonds and BSLs. In this regard they are equal.  However, in terms of amount, alternative credit generates higher spreads and lower losses (tons of data on this) and therefore arguably MORE income liquidity than liquid fixed income. "Exit” liquidity refers to selling all or part of an asset. Now it gets interesting. Investors must ask how much “periodic” “exit” liquidity they want (ie selling regularly in small chunks), and how much “in extremis” liquidity (ie selling in a downturn) they need. Periodic liquidity can be used to meet regular costs and large expenditures within a normally functioning market. “In extremis” liquidity means hitting the ejection button. In the US, retirement accounts are prohibited from tapping income liquidity in their individual retirement accounts before 59 1/2. Private credit lags liquid fixed income when providing periodic exit liquidity. Even an evergreen vehicle with regularly scheduled redemption windows doesn’t offer investors the same liquidity as daily liquid funds. If I need to sell fixed income holdings daily or weekly, I’m better off in a liquid fund. Of course, that edge over private credit diminishes if I can wait 60 days and settle over a day or two. What about “in extremis” liquidity in a market meltdown? Can investors tap successfully liquidity when they want it most? Or is it like collateral to a lender: worth the least when needed most? I argued that investors in liquid credit really cannot get meaningful liquidity under many circumstances. In a technical drawdown, crowding can create a false sense of “in extremis” liquidity needs, compelling panicked and entirely unnecessary selling like we saw in 2020. Alternative credit interrupts that irresistible impulse and actually preserves liquidity by preventing selling at a loss.

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🌟 Unlock the Benefits of Investing in Dubai Real Estate! 📈 Steady Income Stream: Enjoy a consistent flow of rental income 💸 from a booming rental market. With high demand for properties, your investment can provide a reliable monthly return. 🏦 Long-Term Financial Security: Secure your future with a solid investment. Dubai’s real estate market is known for its stability 📊 and growth, offering a safe haven for your money over the long term. 🏠 Tangible Asset: Unlike stocks or bonds, real estate is a physical asset 🏘️ you can see and touch. It provides a sense of security and ownership that's unmatched. 🌍 Diversification: Spread your risk by diversifying your investment portfolio 📊. Real estate in Dubai adds a unique and profitable dimension to your investment strategy. 🛡️ Tax Benefits: Enjoy tax-free rental income 🏝️ and capital gains in Dubai. The government offers investor-friendly policies that can maximize your returns. Invest in Dubai real estate today and reap these incredible benefits! 🌇 Why wait? Invest now and send us a message to discuss your options. 📩✨ 🌐 Visit http://buff.ly/4b3hrYV 📞 WhatsApp +971 58 271 0609 ✉️ Email sales@hassi.properties #DubaiRealEstate #Investment #FinancialFreedom #WealthBuilding #RealEstateInvesting #PropertyInvestment #DubaiProperty #RealEstate

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🌍 While Political Uncertainty Grows in the West, the UAE Emerges as a Stable Haven for UHNW Investors As the US election heats up, with Trump and Harris facing off at the polls, it’s a reminder of the complex and often unpredictable political landscape in the West. Meanwhile, the UAE stands out as a beacon of stability and growth - drawing the attention of UHNW investors looking for a steady base amid the noise. Here’s why the UAE is increasingly on the radar for investors seeking both financial growth and lifestyle appeal: 1️⃣ A Stable, Investor-Friendly Environment The UAE offers a pro-investment government and well-defined regulatory frameworks that support wealth preservation and growth, even during global uncertainties. 2️⃣ Strategic Global Location Situated between Europe, Asia, and Africa, the UAE provides direct access to high-growth markets, positioning investors to diversify their portfolios from a secure, well-regulated hub. 3️⃣ Expanding Alternative Investment Opportunities With a focus on private equity, venture capital, and high-growth assets, the UAE enables UHNW investors to tap into alternative assets in one of the world’s most dynamic markets. 4️⃣ Premier Lifestyle with No Tax Beyond financial incentives, the UAE’s tax-free environment, world-class amenities, security and healthcare make it a prime choice for those seeking quality of life and financial optimisation. In a world where political complexity often disrupts investments, the UAE offers a clear path to growth and stability. Is it on your radar?

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🔰 💥Entire world market downturn is related to the Japanese currency, Yen. Here's the sequence of events: Nothing to do with Israel - Iran war..💥 1. Two weeks ago, the Japanese Yen was trading at 165 Yen per 1 USD (i.e., 1 USD = 165 Yen). 2. For over 30 years, Japan has maintained zero interest rates (even on loans, there was zero interest). 3. Many organizations, funds, and hedge funds took advantage of this by borrowing large amounts from Japan and investing it in the US markets (double benefit of zero interest money and the dollar always appreciating against the Yen). 4. Additionally, since the investment was substantial, most hedge funds also shorted the Yen to hedge their positions (similar to selling call options for easier money). 5. Everything was going smoothly; people had been making free money for years, and this is why Japan is the largest investor in US markets due to its zero-interest money. 6. What changed? Last week, the JCB (Japan Central Bank, similar to RBI in India) decided to raise interest rates by 25 bps after almost 30+ years. And from here, everything changed. 7. Now, zero interest money is no longer zero interest, and there is an additional cost on all your existing loans. Hence, most of the funds that had taken this free interest loan and invested it in the US market started selling off everything to get the money and close the loan (because the US market was already overbought and now these loans no longer had zero interest) 8. Due to the increase in interest, the Yen started appreciating against the dollar, reaching 1 USD = 145 Yen (this was a significant increase in currency value in just 2 days). 9. Now, most of the people who had shorted the Yen (as mentioned in point 4) had to cover their positions because the Yen appreciated significantly in just 2 days. Their call options, which were in between, started moving wildly like the Sensex. 10. Now imagine you took a loan in Yen when 1 USD = 165 Yen and invested it in the US market. Suddenly, 1 USD = 145 Yen, so regardless of your returns, you have a direct cross-currency loss of 13%. (Assume you took a loan of 16,500 Yen which was equal to 100 USD, and now 16,500 Yen is equal to 113 USD. Even if there is no interest, you have a direct loss of 13% due to the Yen appreciating.) 11. In such a scenario, wouldn’t you sell everything to save yourself? What is the solution to this situation? The simple solution is that the US needs to lower its interest rates to counter this. If a mountain is formed somewhere, it has to be countered elsewhere. If the mountain is in Japan, the US will have to act. The Indian market suffered primarily due to heavy selling by Foreign Institutional Investors (FIIs) as a result of the panic in Japan and the US

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FoMo becomes FEAR!! The markets this year have traded very well buoyed by expectations of fed cuts with Equity markets much stronger... Bond markets stable and stronger, and credit/risk markets also compressed to tight levels everybody's been happy everybody's been paid well and everybody is long I would go so far as to say that fear of missing out has been a very big contributor to people's market allocation with the S&P & NASDAQ both doing well and as a result many other correlated markets doing well (bitcoin EM ect) That looks like it's coming to an end...and the easy money has been made. Valuations at very toppy levels with long-term PE ratios at or around all time highs and the FED looking like it doesn't have the ability to cut rates because inflation in the States is much higher than targeted Just to make readers more uncomfortable GGG (Gargours Global Gaze ) a small group of interested people that chat about economics and politics had a guest speaker David Murrin this week.... (pm me if you want to subscribe lg@lngcapital.com) who outlined his worst case scenario as: The Middle East conflict will erupt with Iran being attacked by Israel in order to destroy its nuclear program once and for all, gold and oil both rally enormously markets sell off Treasuries trade as a safe haven and the dollar gets stronger ... however this does not bode well for equities and all other risk assets with ME conflict leading to significant global sell offs Today's Vix gauge shows that many investors are not necessarily selling their long positions yet... but are beginning to hedge using put options and other hedging strategies I think it's time that readers reassess whether or not Equity markets can continue to perform well at elevated price earning ratios, with the FED not being accommodative in the near future and rates staying high. In the longer term we most likely have a 3.5% inflation environment not 2%, the current inflation numbers in the states do not merit any cuts in the intermediate or near term If War does break out in the Middle East and escalates the markets are likely to be punished If Trump does come into power it's likely Ukraine is not the last country to be attacked by Russia, David went on to mention that he thinks China will benefit enormously from a middle eastern conflict and will be able to ring fence and control Taiwan and will use the distraction as an opportunity to expand its control of the Asian basin so most likely we're going to see a number of global conflicts erupt in 2024 We move from FOMO to FEAR #Equity #markets #war #bonds #inflation #gold #bitcoin #trump #China #middleeast #Iran #isreal Vix ‘fear gauge’ soars on Middle East tensions and interest rate shift - https://on.ft.com/4aFKTns via @FT

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🚩 Important Update 🚩 : You can no longer have multiple shareholder visas in a Dubai company...! If you’re setting up a company in Dubai, this new rule could impact your visa plans. Dubai Immigration - General Directorate of Residency and Foreigners Affairs (GDRFA) has announced that each company is now limited to just one investor or partner visa, aligning free zones with the recent policies implemented on the mainland. Here’s what it means for companies with multiple shareholders: - Investor/Partner Visa: Only one visa will be issued per company. Alternatives: - Manager Visa: Ideal for the second shareholder, particularly for non-degree holders. - Employee Visa: Other shareholders can apply for employee visas. For managerial or senior roles, an attested degree is required. - Setup in another Emirate: if the shareholder status and visa is important look at other alternatives in the 6 other Emirates of the UAE - Golden Visa: Get yourself a golden visa through deposit, real estate or as a skilled professional for 10 years. This means you need to plan around this if you were planning to do multiple shareholder visas, not a big pain but necessary to adjust your plans and office/visa allocation plans. Have any questions on visa or immigrations? Reach out in the comments or DM me !

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#The Importance of Moving to Dubai# DUBAI Dream .. is your Gateway to Strategic Real Estate Opportunities And crypto trade freedom . Its out of question that today , Dubai has cemented its place as one of the world’s most dynamic cities, offering unparalleled opportunities for investors, entrepreneurs, and businesses. For those considering real estate or crypto investments, Dubai’s strategic location, thriving economy, and visionary leadership can make it an ideal destination .. How Alrouya Can Help You? At Alrouya ,we specialize in guiding investors to maximize the potential of Dubai’s real estate market and crypto trade. We help investors understand Dubai’s market trends and identify strategic opportunities tailored to their goals. We also provide planning , logistics And banking Support for Asset Movement: Our expert team ensures the smooth movement and management of your assets, helping you make the right decisions with minimal risk & cost. # YOU have a brilliant project and you are seeking powerful investors ? we are able to help. Why Choose us ? Very simple : .....We earned our experience working with World Economy leaders . Contact us today to start enjoying a journey towards success in Dubai! CEO IBraheem

Trump Delivered a Substantial Press Conference - and it is important to understand the hot files on his desk after 2 weeks 1️⃣ Opening with Hussain Sajwani: Trump began by welcoming Hussain Sajwani, the founder of DAMAC Properties, to the stage. Sajwani stated, “We’ve been waiting four years for this moment to invest $20 billion into data center projects and technological infrastructure. 2️⃣ Threats to Panama, Mexico, Canada, and Denmark: Panama: Trump criticized Panama over the Panama Canal tolls, stating, “We built it with our workers, losing 38,000 lives to malaria during its construction. Giving Panama control was Jimmy Carter’s greatest mistake.” Mexico: He demanded urgent action to stop migration from the south, claiming, “They’re flooding the country with killers and fentanyl dealers.” (Fentanyl is a powerful painkiller misused as a drug across the U.S. and Canada). He also proposed renaming the Gulf of Mexico as the “Gulf of America.” Canada: Trump questioned the purpose of the border, stating, “Why do we spend billions protecting Canada? We could manufacture 20% of the cars we import from Canada in Detroit. We have our own lumber and dairy products, and we can impose substantial tariffs on Canada, who wouldn’t survive without us.” (Previously, Trump suggested making Canada the 51st state). Denmark: Trump reiterated his interest in Greenland, stating, “If Denmark claims rights to Greenland, we’ll address it.” He suggested Greenland should hold elections to decide if it wants to join the U.S., recalling his pre-presidency offer to purchase Greenland for national security reasons. If Denmark refuses, he threatened “unprecedented tariffs.” 3️⃣ Legal Battles and the FBI: Trump discussed his ongoing legal battles with the Department of Justice, claiming victories in four cases so far. He criticized the deep state and the FBI, pledging, “We’re going to make the FBI great again.” 4️⃣ Praise for Erdoğan: Trump spent about five minutes praising Turkish President Erdoğan for his actions in Syria, calling him “a good friend” who respects the U.S. He noted that the region historically belongs to Turkey, and Erdoğan listened to him when asked not to target the Kurds. 5️⃣ Hostages in Gaza: When asked about the hostage situation in Gaza, Trump called Steve Witkoff, a businessman and real estate investor, to the stage as his Middle East envoy. Trump praised Witkoff’s negotiation skills, stating, “Many know the Middle East, but few can make deals and agreements.” Witkoff’s Remarks: He thanked Turkey and Qatar for their “unparalleled efforts” and highlighted his intensive negotiations. Russia-Ukraine War: Trump stated the war would never have happened under his administration, describing the situation as catastrophic, with “hundreds of thousands dead on both sides and vast mine-filled lands littered with unburied bodies.” He blamed the war on NATO reneging on promises made to Putin that Ukraine would not join the alliance.

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The number of billionaires living in the UAE increased by 7% last year, representing a combined wealth of over $200 billion. Dubai, in particular, has become a magnet for ultra-high-net-worth individuals (UHNWIs) – a trend that is driving even greater demand for luxury real estate in our emirate. From what I have seen, this trajectory appears to have been maintained over the past 12 months, and I anticipate that it will persist for the foreseeable future. Do you expect wealth migration to the UAE to continue into 2025? Please let me know your thoughts in the comments. #luxuryproperty #wealthmigration #UAEbillionaires

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Give me 2 minutes to show you that Family Offices & Family Holdings in the UAE are NOT the same👇 Now, the word "Family Office" is over used in the UAE. Family Holdings are not Family Offices, however they do have certain similarities and capabilities. In developed markets a Family Office is a separate managed account with a separate mandate, attached to experienced portfolio managers, lawyers and accountants that invests in assets away from the industry the Family made its wealth from. Their job is to make alpha for the family. Family Holdings are very common here in the UAE and these are not Family Offices. They operate different. But it is still a potential source of funding for sure. Family Holdings are split into different operating companies, in separate industry verticals, with different sized income and regional exposure. Some of the cash gets pooled into the holding or left in the specific assets for operational expenditure. Most Family Holdings do not have a liquid pool of capital, ready to invest in alternatives, it takes time to draw liquidity from the families assets, plus they do not have the risk appetite or due diligence experience a Family Office would. Family Holdings is not the best avenue for growth venture capital, or fund managers seeking LP cash. As Family Holdings may like you, may agree on your strategy but not structured to make fund investments. Alternatively, Family Holdings are good investment route for strategic equity investments, strategic seed investments or tech companies that operate in same industry vertical or franchise expansions in the Middle East. Family Offices you will find in ADGM or DIFC. The name of the Family Office 90% of the time is not named after the surname of the family. Family Offices will have an investment team, in-house council, accountants and more. Many whom you will find on linkedin. The tough part is finding the name of the Family Office, as many go under Private Family Office. Here are some examples of the difference in the UAE: Family Holding: Mohamed & Obaid Almulla Group Family Office: Almulla Capital Family Holding: Gargash Group Family Office: Daman Investments Family Holding Saeed & Mohammed Al Naboodah Group Family Office Phoenix Capital Family Holding Al Masaood Family Office Xplor Investments Or you have hybrids who are Family Holdings with an internal Family Office: Ali & Sons Holding LLC First of all, I hope this helps. Second of all, if you all took more time to did deeper, it might save you hours, days, weeks or even months of valuable time. Always remember: The whole world can say no. You just need one person to say yes. Family Office Summit Abu Dhabi  Family Office Summit 4th December 2024  Sign up here: www.familyofficesummit.ae #familyoffice #uae

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💸 The Truth Behind Exchange Rates: Why 1 Omani Riyal Doesn’t Make the UAE Dirham Weak! 💸 💡 Imagine this: You’re discussing with your finance-savvy friends, and the topic of currency strength comes up. Someone confidently claims, “Oman’s currency is way stronger than the UAE’s Dirham because 1 Omani Riyal equals 10 Dirhams!” ⚠️ Stop right there! Don’t fall into this common trap of comparing nominal exchange rates! Just because 1 OMR = 10 AED doesn’t mean the Omani Riyal is “stronger.” It’s a misconception that many people hold. But there’s more beneath the surface. Here’s why this thinking is flawed: • 💰 Nominal exchange rates only tell you the face value, not the full story. • 💡 Purchasing Power Parity (PPP), inflation, and real exchange rates are the true markers of a currency’s strength. ⚖️ How do you actually measure currency strength? Let’s break it down: the real strength of a currency lies in what it can buy compared to other currencies. This is where Purchasing Power Parity (PPP) comes in. Example: Suppose a basket of goods costs 100 AED in Dubai, and the same basket costs 10 OMR in Muscat. Now, just because 1 OMR = 10 AED, it doesn’t mean the Omani Riyal is 10x stronger. Instead, we need to ask: • How much do those 10 OMR buy in Oman compared to 100 AED in the UAE? If the purchasing power of 10 OMR in Oman equals the purchasing power of 100 AED in the UAE, then the currencies are balanced in real terms. But if the same basket in Oman only costs 8 OMR, the Omani Riyal is stronger because it buys more. On the flip side, if it costs 12 OMR for the same basket, then the Dirham is stronger! ⚡ Here’s the kicker: UAE and Oman’s economic environments, inflation rates, and purchasing power are what really dictates the “strength” of their currencies. And trust me, these metrics paint a very different picture than simple numbers on a currency board! 💥 Next time someone throws out exchange rate figures like this, drop some knowledge and remind them of the bigger picture. It’s not about face value—it’s about real economic power. 💥 #FinanceMythBusting #CurrencyStrength #EconomicsExplained #UAE #Oman #ExchangeRates #PurchasingPower #RealEconomy

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The UAE has retained its position as the world's top wealth magnet for the third consecutive year, attracting a record 6,700 millionaires in 2024, according to Henley & Partners. Factors such as luxury lifestyle, golden visas, and a low-tax environment contribute to this trend. The UAE is set to attract nearly twice as many millionaires as the US. Other top destinations include Singapore, Canada, and Australia. The migration of wealthy individuals indicates significant shifts in global wealth and power dynamics. #UAE #Wealth #Migration

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Macro Views - 24th July US interest rates markets, having settled near the recent lows, await the release of GDP data tomorrow and the Fed's preferred inflation PCE numbers on Friday. US 10yr treasury is at 4.25% (+5bps over last week) and 2yr is at 4.45% (+1bp). Expectations of September and December rate cuts are built in, notwithstanding the presidential election during last quarter. To my mind, the election event poses reasonable risk of Fed deciding to wait till December for the cut. USD is a bit stronger with DXY at 104.40. The risk-on sentiment has taken a hit with US tech earnings way below expectations, e.g., Tesla and Alphabet. Indian markets took the union budget in their stride and recovered swiftly even after an increase in capital gains structure. A 2.5% increase in LTCG for equities is not much but the government looks set on a path for Direct Tax Code and LTCG may increase further in next few years. Even then the retail investor may believe that equity is the better asset class. This step plus the taxation on F&O segment coupled with muted earnings so far may instill some sanity in equities. We may see a time correction over next year as we saw after Nov '21 peak. USDINR touched all time high at 83.70 where it is being "held". The anchoring to CNY may continue in near future. The FPI inflow in equities (+5bn YTD) and in bonds (+10bn YTD) remains steady with the bond inflows assured on back of the bond index inclusion. The prudent fiscal deficit gave comfort to bond markets and 10yr Gsec is slightly soft at 6.96%. Next, the market will watch out for inflation, especially food and services inflation. The budget hit the Indian gold bulls as the import duties were slashed and the prices immediately corrected by 5-6%. In my opinion, the step was taken not to encourage investment in gold but in view of an increase in gold smuggling and the duty's failure to decrease gold demand meaningfully, causing a higher load on the forex outflow. Its even better now for Indians to buy gold now as the further room to cut duties is very limited and the global uptrend in gold prices may continue USDJPY touched a low of 154.60 on back of expectations of rate hike of 10bps by the BOJ and also a display of firm commitment to prevent JPY weakness beyond 160. This time the intervention was more effective as it was timed with data release favouring dollar weakness (CPI release two weeks back). Coupled with lower dollar rates expectation and a surge in JGB yields, some unwinding of the carry trade has taken place.    China failed again to provide any meaningful stimulus as the Third Plenum ended. Only a 10bps cut in rates was delivered by PBoC. This was not taken well by commodities markets. Iron ore fell to $100 (recent bottom), base metals also fell with Aluminum at $2295(-17% from May-end), Zinc at $2688 (-14%) and Copper at $9166 (-17%). The base metals are now coming into buying zone while iron ore may fall further on back of Chinese slowdown.

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Are you earning income from real estate in the UAE? 🇦🇪 Want to know if your investment is tax-exempt - then, keep reading! Last month, the FTA released the “Corporate Tax Guide” for real estate investments for natural persons. The +25-page document provides clarity on a number of key points & updates revolving the real estate investment landscape in the UAE. Here’s a quick breakdown for you: • Real Estate Investment Definition: Income from selling, leasing or renting real estate is excluded from Corporate Tax, if it doesn’t require a business license. • Licensing Requirements: If your real estate activities (like short-term rentals) require a license, this income is subject to corporate tax. • Hotel Management: Own a hotel but leave management to a licensed operator? That income is still considered a “real estate investment” and remains tax-free. • Taxation Threshold: Natural persons are only subject to corporate tax if their turnover from business activities exceeds AED 1 million/year, excluding non-licensed real estate income. If you're currently investing in UAE real estate, I want to know... Are you aware of how these licensing guidelines could impact your investment's tax status? If not, I’m here to help & provide clarity - if you have any questions, either drop them in the comments or better yet, send me a DM! 👇

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🌟 Considering a Golden Visa in Dubai? 🌟 Golden Visa programs are designed to attract investors and entrepreneurs by offering residency privileges on a long term basis. In Uae, Golden visa rules have changed drastically since inception and are becoming easier by the day. In this video I speak about obtaining a golden visa via a property investment in Dubai. -Eligible properties include residential or commercial, with a purchase/valuation price of AED 2M or above. -Options range from ready, off-plan to mortgaged properties. -Exciting news: The minimum capital requirement of AED 1M has been waived, streamlining the process! What’s even better? Your spouse, children, parents, and unlimited domestic staff can also qualify. Don’t miss out on this opportunity for long-term residency in the UAE! To know more drop me a DM or email me at zeba@ficocapitalsolutions.com #Zebamajithia #GoldenVisa #DubaiRealEstate

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