The Take
on what the market gives us…
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
Let’s be clear...this isn’t your Grandmother's Fed!
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September 22, 2022
Since Sunday March 15th, 2020, when the Federal Reserve (Fed) took emergency action to cut rates to 0.0%, one thing has become abundantly clear – this is not your Grandmother’s Federal Reserve. Read More
A SEPtember to Remember?
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September 19, 2022
All eyes will be on the Fed at 2pm on Wednesday. Will they hike 50, 75, or (gulp) 100bps? What isn’t as discussed in the popular media is their Summary of Economic Projections (SEP) which includes not only their DOT plot, but clues as to their longer-term thinking about the economy and inflation.
"The future ain’t what it used to be.” – Yogi Berra Read More
Disruptions – in Markets and Tennis
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September 8, 2022
Market timing is difficult, and upsets usually lead to opportunities, especially because we believe that spreads tend to mean-revert over time. At IR+M, we “take what the market gives us,” using a measured approach to seek out attractive security selection opportunities rather than making duration bets or large asset allocation swings. Read More
Winter is Coming
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August 29, 2022
Russia’s invasion of Ukraine, and Europe’s swift response with sanctions has created a seismic shift in global natural gas markets. US dollar bond investors typically follow European natural gas prices with a casual eye. That all changed when Germany cancelled the Nord Stream 2 pipeline project and Russia retaliated by slowing natural gas supply to a trickle. Europe, particularly Germany, relies on abundant Russian natural gas to fill storage tanks during the summer months to fuel homes and businesses throughout the winter. Europe is now in a tenuous position of restructuring its energy sources and uses in a matter of months, in what normally would require years if not decades of planning. The EU receives approximately 40% of its natural gas from Russia and the European Commission has outlined a plan to wean itself off Russian gas by 2030. This is a monumental task. Read More
Summer Heat: Keep it Short and Enjoy Some Ice Cream
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August 16, 2022
There’s nothing like ice cream on a hot day. The recent heat wave was longer than we usually get in New England, just as this year’s bond market rout seems to be dragging on. Rates and spreads have been simmering all year. But volatility creates opportunity, and this year is no exception. Read More