The Take
on what the market gives us…
Lights, Camera, Action: Non-Traditional Asset-Backed Securities (ABS) in the Spotlight
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March 9, 2022
As investors have increased allocations to “non-traditional” sectors in search of yield, scrutiny has started to mount regarding the ratings of the bonds. Of the $90+ billion of non-traditional ABS issued in 2021, the vast majority had only one public rating from a 'Big 3' ratings firm or lacked a 'Big 3' rating altogether. This contrasts sharply to the investment-grade corporate bond market, where at least two public ratings from a ‘Big 3’ agency are standard. Read More
Consistently Inconsistent: Credit Ratings versus ESG Ratings
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February 16, 2022
Credit ratings for bond issues have been a mainstay of fixed income analysis for well over 100 years. Unlike traditional credit ratings, ESG ratings are in their early stages on a relative basis. Ultimately, improved data disclosure, more standardized information, and consistent standards-based application on SASB and other regulatory bodies will go a long way toward developing more reliable ESG ratings. Read More
Fed Up
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February 10, 2022
Recently, the FOMC has shifted its focus from closing the employment gap to mitigating inflation trends. They’ve announced their conventional tightening toolkit and ramped up hawkish rhetoric. Yet waning fiscal spending, rising tax revenues, and shortening auctioned Treasury maturities has countered their efforts to tighten financial conditions back to “normal”. Read More
Disruption: Innovation Breeds Risk and Opportunity
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December 17, 2021
Disruption is seemingly inevitable – and the pace of innovative disruption is only accelerating. In this week’s edition of The Take, we discuss how disruption factors into how we think about credit risk and portfolio management. Read More
Changing RBC Bond Factors for U.S. Life Insurance Companies - What Does it all Mean?
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December 8, 2021
In this week’s edition of The Take, Sr. Client Portfolio Manager Rob Lund discusses the changing RBC bond factors for US Life Insurance Companies and what it all means for the broader market. Read More
Thank You
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November 30, 2021
To our clients, we appreciate the trust that you have placed in us, and for allowing us to play a small part in your individual missions as we unite in making the world a brighter and better place. We value our partnership and wish you all a wonderful holiday season! Read More
IR+M’s Recap of COP26
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November 17, 2021
The United Nation’s 26th annual Conference of Parties (COP26) came to a close with some positive momentum and clear agreements concerning climate change. Read More
More Than Words
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November 10, 2021
Heading into the final frame of 2021, we at IR+M were in a need of a little energy infusion – a spark to help propel us towards the finish line. As is the IR+M way, the flicker of an idea quickly ignited into a movement powered by unbridled enthusiasm. IR+M’s version of Oktoberfest was born, and launched to great fanfare on October 1st! Read More
The Fast and the Furious: Fed Edition
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November 1, 2021
The Fed is preparing markets to gear-down monetary accommodation. But this economic recovery lacks historical precedent. Tightening labor markets, decelerating growth, and “transient-for-longer” inflation puts the FOMC on a slippery track. They need the flexibility to improvise as new data comes in, while assuring jittery markets that they’ll be steady at the wheel when market volatility rises. Read More
Life is a Highway: Choosing the Right Vehicle for Your Goals
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October 27, 2021
In life and investing, choosing the right vehicle is extremely important. As with automobiles, investment vehicles continue to evolve, both in type and usage. In this week’s edition of The Take, we explore collective investment trusts and their rise in popularity. Read More