The Take
on what the market gives us…
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
Tarantulas in the Dark
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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. Read More
250* Fahrenheit, 6 Hours.
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August 5, 2020
As interest rates have declined, so too has the margin for error, thus increasing the benefits of portfolio diversification. Read More
How Much Will It Hertz?
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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. Read More
Game Changer
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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. Read More
The Ratio is Dead…Long Live the Ratio
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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. Read More
Tips on TIPS
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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". Read More
Curves Ahead
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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. Read More