The Take
on what the market gives us…
Finding Gems in the Dark
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November 12, 2020
2020 has brought us all some uncertain times, but also some unique opportunities. The taxable muni market has continued to evolve and mature in 2020 and continues create new and attractive prospects for the portfolio. Read More
The Trick or Treat of Bond Convexity
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October 28, 2020
2020 has had its share of surprises, including interest rates dropping to near all-time lows. Although rate volatility remains tame for now, convexity is poised to be a larger piece of fixed-income performance at current yield levels. Thus, bond investors should be wary of nuances in this oft-overlooked risk factor. Read More
Tactical TIPS
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October 14, 2020
At IR+M, we avoid betting on the future of interest rates or inflation, but we aren’t afraid to take advantage of a market dislocation that presents alpha opportunity. Read More
The Roll is Like The Slide - The Steeper the Better
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October 7, 2020
Cross asset investing requires cross asset curve analysis. As curve dislocations occur, opportunities are created. Read More
The Cathedral and The Skyscraper
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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. Read More
The Upside of Low Rates
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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. Read More
I'm Sad Because I'm Shortening, and I'm Shortening Because I'm Sad
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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
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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
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September 2, 2020
Low rates = long durations. Updating the mental model. Read More
The Election Matters…Just Not Very Much for Munis
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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