The Take
on what the market gives us…

I'm Sad Because I'm Shortening, and I'm Shortening Because I'm Sad
By: Wesly Pate — September 16, 2020

Diverging durations have unique portfolio ramifications. Here we discuss the potential for passive additions to risk when durations move in opposite directions.
Read More 

Agency Mortgage-Backed Securities’ Excellent Adventure
By: Jake Remley — September 9, 2020

Long-term fixed income investors have experienced a variety of “black swans” over the past 20 years. Agency MBS has had its share of challenges, but the sector’s liquidity, transparency, and diversification benefits remain resilient through market cycles.
Read More 

Mental Model Update
By: Bill O’Neill — September 2, 2020

Low rates = long durations. Updating the mental model.
Read More 

The Election Matters…Just Not Very Much for Munis
By: Wesly Pate — August 26, 2020

Munis exist at the crossroads of finance and politics, but this time the election might have minimal impact on the performance of the asset class compared with the past.
Read More 

Tarantulas in the Dark
By: Jake Remley — August 19, 2020

Have investors forgotten the trauma of March so quickly? Here is a summertime thought exercise on the impact of fear in markets and its considerations in active fixed income management.
Read More 

250* Fahrenheit, 6 Hours.
By: Wesly Pate — August 5, 2020

As interest rates have declined, so too has the margin for error, thus increasing the benefits of portfolio diversification.
Read More 

How Much Will It Hertz?
By: Jake Remley — July 29, 2020

The Hertz Global Holdings bankruptcy in May has wide-ranging implications for Rental Fleet ABS. While a six-month compromise between creditors and Hertz was reached this week, the recent challenge by Hertz’s lawyers regarding the sanctity of the master trust lease agreement raises serious questions – most notably, how other ABS master trust indentures may be affected. As a result, we continue to watch these legal proceedings with interest.
Read More 

Game Changer
By: Bill O’Neill — July 22, 2020

Capital markets are forever changing. Credit spread compensation was once fairly straightforward to analyze, compare, and digest. That is no longer so.
Read More 

The Ratio is Dead…Long Live the Ratio
By: Wesly Pate — July 14, 2020

Numbers are supposed to be the guiding principle to many of our decisions. So what happens when a number loses its meaning? As the relevance of the Muni/Treasury ratio declines, we offer a more comprehensive approach for cross-sector, after-tax relative value discussions.
Read More 

Tips on TIPS
By: Jake Remley — July 7, 2020

In this piece, we discuss why TIPS may appeal to a bottom-up fixed income manager, even if the macro-economic outlook is clouded by “interesting times".
Read More