The Take
on what the market gives us…

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.
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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.
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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.
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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.
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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.
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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".
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Curves Ahead
By: Bill O’Neill — June 30, 2020

In this post, we look at back at the events that have transpired since March, and examine the impact of Treasury/Fed buying and corporate credit fundamentals on the credit curve.
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My Tax Haven Is Worth Less, But Certainly Not Worthless
By: Wesly Pate — June 23, 2020

In this post, we will explore some of the ramifications of lower yields on the value of the exemption, why munis tend to lag in a rate rally and outperform as rates climb, potential benefits of munis during periods of market dislocations, and how we are viewing the value of the asset class in today’s environment.
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Non-Agency RMBS: Expect Bumps But Not 2008
By: Jake Remley, CFA — June 16, 2020

In this post, we break down the top ten reasons why we think this crisis will be different for non-agency RMBS.
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