The Take
on what the market gives us…

Paddle to The Sea of Income and Liquidity
By: Jake Remley — December 2, 2020

Although yields have declined to generational lows, high-grade bonds still offer valuable income and liquidity. But how do bond investors get comfortable with the possibility of negative returns from rising interest rates? Absent a crystal ball, we offer key considerations for assessing investment-grade fixed income risk/return in a world of low yields.
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Finding Gems in the Dark
By: Wesly Pate — 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.
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The Trick or Treat of Bond Convexity
By: Jake Remley — 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.
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Tactical TIPS
By: Bill O'Neill — 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.
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The Roll is Like The Slide - The Steeper the Better
By: Wesly Pate — October 7, 2020

Cross asset investing requires cross asset curve analysis. As curve dislocations occur, opportunities are created.
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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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