Viewpoints Seeking Harmony in Short‑Term Markets Recent volatility in short-term markets will likely, over time, be accompanied by more attractive income opportunities for cash allocations.
In music, two voices raised in harmony can be sublime. In investing, two factors working in harmony can drive results and structural total returns.However, many investors observing bond markets in the first quarter of 2022 found themselves questioning the traditional “duet” of capital appreciation plus carry/income to produce total returns. Negative total returns in short-term bonds – along with uncertainty producing volatility in typically stable short-term rates indices (see Figure 1) – have been a dissonant experience. To Read the Full Article Log In Or Register
Viewpoints Mind the Supply: The Counterintuitive Impact of Higher Rates on U.S. Housing The dearth of homes for sale has underpinned the housing market’s surprising resilience and may further lift home prices despite reduced affordability.
Viewpoints Opportunities in Private Credit: Stepping In as Banks Step Out As banks pull back from many types of lending, demand for capital is outpacing supply, providing the best potential opportunities in private credit since the GFC.
Blog October CPI: Small Surprise, Large Market Reaction U.S. inflation cooled more than expected, and bond markets rallied, but the Fed is likely to remain in a long pause.
Asset Allocation Outlook Prime Time for Bonds In our 2024 outlook, bonds emerge as a standout asset class, offering strong prospects, resilience, diversification, and attractive valuations compared with equities.
Municipal Monthly October Municipal Market Update: Examining End‑of‑Year Trends Amid High Absolute Yields We review the latest developments in the municipal bond market and discuss how high absolute yields, coupled with a historically supportive end-of-year environment, may offer an attractive entry point for investors.
Strategy Spotlight Income Fund Update: Poised for Resilience and Potential Price Appreciation We see meaningful value in high quality, more liquid bonds that offer compelling yields and potential price appreciation should the economy weaken.
Blog Despite Resilient Data, Fed Signals Prolonged Pause Tighter financial conditions prompted Federal Reserve officials to take a step back from data dependence, and suggest a higher bar for future hikes.
Viewpoints Debt Ceiling Debate: Examining Risks Around the X Date Debt ceiling concerns are rippling through financial markets. We discuss the potential risks and opportunities for investors.
Blog Regional Bank Stress Puts Spotlight on Cash Management Shocks to the U.S. banking system underscore how even cash holdings can involve risk and also suggest that the timeline for a recession may have drawn nearer.
Blog Proceed With Caution: Opportunities for Cash and Defensive Income Amid Uncertainty We believe short-dated bonds can offer attractive yields, flexibility, and a means to proceed cautiously as central banks continue to raise interest rates.