The personal consumption expenditures price index rose 0.3% from the prior month in March and was up 2.7% from a year earlier, according to the Commerce Department. Core PCE, which excludes food and energy prices, was up 2.8% from the prior year, slightly above the Dow Jones consensus estimate.
Growth in private credit has led to difficulty exiting some holdings, but a solution is taking shape in the form of portfolio sales, which are expected to triple this year to an estimated $15 billion. Such deals allow for early exits at discounted prices, typically around 85 cents on the dollar, and the secondary market can help tackle liquidity challenges in the private credit market.
High commodity prices, which are still above pre-pandemic levels, are likely to prevent central banks from reducing interest rates swiftly, according to a World Bank report. The bank noted that while global commodity prices have stabilized, they remain elevated, posing inflationary pressures and economic vulnerabilities.
The Public Company Accounting Oversight Board is proposing a rule that could significantly expand auditors' responsibilities, pushing them toward acting as legal watchdogs by requiring them to identify or prevent noncompliance with a broad array of laws, writes Brian Croteau, chief auditor at PwC US. "We recognize the objective of the PCAOB's proposed rule is to address concerns about risks to investors from companies' noncompliance, and we see the potential benefits of updating the standard to continue to enhance quality and promote a better understanding of the auditor's role," Croteau writes.
NextEra Energy Partners, a subsidiary of NextEra Energy, is grappling with the repercussions of its convertible equity portfolio financings. Under the unique financing, institutional investors funded the asset acquisitions and received a portion of the cash flows from the assets, and NextEra can buy out the investors at a later date. CEPFs did not count as debt on NextEra's balance sheet and offered an efficient way to issue future equity, but a declining share price crushed the company's ability to fulfill its obligations under these arrangements and NextEra is exploring options to address the challenge.
Developing a system of self-reflection can help leaders handle their emotions, identify self-defeating patterns and find ways to change them to improve their decision-making skills and self-awareness, writes Ben Bryant, a professor of leadership and organization at IMD in Lausanne. Bryant outlines five steps necessary to identify feelings, experience them, explain them, see limiting patterns and intentionally change them.
Leaders who want to be good coaches for their direct reports put others at the center of their attention so they can notice patterns, ask questions and make space for responses as well as challenge limiting beliefs and move their team toward success, writes Dan Rockwell. "Coaches believe growth is probable. You can't coach someone you don't believe in," Rockwell notes.
