The Take
on what the market gives us…

The Cathedral and The Skyscraper
By: Jake Remley — September 30, 2020

In today’s uncertain environment, true bottom-up bond picking combines old-fashioned fixed income acumen with modern quantitative analysis. The result is a robust set of building materials that can be employed by an active manager to construct dynamic, flexible, and fundamentally sound portfolios.
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The Upside of Low Rates
By: Theresa Roy — September 23, 2020

In this post, we explore some of the potential de-risking and cost-saving benefits of a borrow-to-fund strategy for corporate pensions in today’s low rate environment.
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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.
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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.
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Mental Model Update
By: Bill O’Neill — September 2, 2020

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