The Take
on what the market gives us…
March Madness in Bonds
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March 21, 2023
It’s amazing that the Federal Reserve (Fed) kicked-off this unprecedented tightening cycle with an initial 25bp rate hike only 12 months ago. Since then, they have meticulously pondered each turn of the screw against a plethora of slowing economic data. Then came the ghosts of the Great Financial Crisis (GFC). Read More
The Market Giveth and the Market Taketh Away
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February 28, 2023
History has taught us markets can be generous or punishing. Hindsight is 20/20, but LDI discipline can protect funded status gains in the face of market volatility. Read More
Commercial ABS Debt Maturity Wall: “Die Another Day”
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February 13, 2023
At this juncture in the bond market, many Commercial ABS issuers seem to have found themselves in the plot of a James Bond thriller. Commercial ABS bond yields have more than doubled over the last year as the Federal Reserve (Fed) battles inflation, creating refinancing risk for issuers with balloon-style repayment structures. Thanks to a very manageable near-term debt maturity schedule, however, many Commercial ABS issuers just might live to “Die Another Day.” Read More
What Has Really Changed?
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February 8, 2023
Bond market technicals have done a complete about face since the beginning of 2023. With only a modest improvement in the macro-economic data, two key “gut-check” questions are, 1) what has really changed, and 2) are the changes here to stay? Read More
Game of Knowns: The Bond Market in 1H-2023
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January 9, 2023
While tremendous political, economic, and market uncertainty remains, here are ten reasons investors can take comfort in the bond market to start 2023. Read More
Where’s All the Talk About COP27?
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December 6, 2022
Just over a year ago, COP26 was taking center stage. There was buzz about this annual United Nations Conference of Parties focused specifically on climate change, with genuine excitement about progress and buy-in. Our overview of the conference along with our brief recap conveyed the positive momentum. Read More
Don’t Be Spooked by The Fed
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November 7, 2022
The Fed did their best at the November meeting to extend the Halloween season. But their hawkish hand had been forced by the pre-emptive market rally over the past two weeks. As a result, they put the spook back into the doves. Read More
Beware of Zombie Securitizations this Halloween
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October 26, 2022
In the aftermath of the 2008 financial crisis, economists warned that artificially low interest rates were creating ideal conditions for “Zombie Companies” to proliferate across the globe. Read More
Product Spotlight: Cash Alternatives
October 13, 2022
What a difference (almost) a year makes… At the end of 2021, short cash and bond yields were the subject of little fanfare. The Federal Reserve was targeting a fed funds upper band of 0%-0.25%, the 2-year Treasury was yielding 0.73%, and 1-3 year corporates were at 1.12%. Fast forward to today, and after five hikes totaling 300bps, the fed funds rate is hovering at 3.25%, the 2-year Treasury is exceeding 4.25% in anticipation of further rate increases, and 1-3-year corporates are nearly 5.4%… Read More
How soon is now? Saving for retirement could get a boost.
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September 29, 2022
As far as SECURE 2.0, what are the implications of the proposed changes? First and foremost, it’s encouraging to see the continued efforts and positive trend of promoting increased savings for future retirees, something that is desperately needed. As an asset manager, we look forward to partnering with clients on ways to ensure participants have attractive fixed income options in their defined contribution (DC) plans. We can likely anticipate an increase in the number of retirement accounts, larger balances through more contributions, assets staying in accounts longer, and more demand for “DC-friendly” strategies and vehicles. Read More