Inertia is an unbelievably powerful force but I still believe strongly that the
asset management industry will go
through a transformative period of fee compression and
massive consolidation.
The past several years have featured little more than a gigantic
asset swap, the short description being that
massive volumes of government debt have been swapped by central banks for
massive volumes of idle bank reserves, while
massive volumes of low - yielding, covenant - lite debt have been issued into the hands of yield - seeking investors, in order to retire
massive volumes of corporate equities at elevated valuations
through buybacks.