Assets and their associated processes are one of the most significant areas of the financial markets.
While asset recovery is a fairly recent term, it’s been around for many years, often referred to as the “assets-management” business model.
As the name suggests, asset recovery firms specialize in recovering assets from a wide range of different assets, such as property, stock, debt, and cash.
They also work on managing, structuring, and securitizing the assets, which in turn can then be sold.
While many of the asset recovery business models are based on the assumption that asset value will decline over time, the actual rate of return is often far greater than expected.
In fact, the financial sector is currently experiencing a $2.7 trillion asset price rally, while the underlying economy continues to be battered by the Great Recession and the ongoing global financial crisis.
While these asset recovery businesses have come under intense scrutiny in recent years due to their high turnover, low liquidity, and the high level of risk, the fundamentals behind the asset-management business model have remained relatively unchanged.
In this article, we will examine some of the fundamentals underlying the asset management business model and what they mean for the U.S. economy in 2017.