Fixed Income

Fixed Income Commentary – May 2021

“Here Comes the Sun” – The Beatles Key Takeaways Bond yields had a relatively quiet month despite the number of strong economic reports out during the month, declining 9 to 12 basis points, mostly on the back end of the curve. The Fed signaled they will stay the course with regards to their accommodative monetary […]

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Fixed Income Commentary – April 2021

“Anticipation” – Carly Simon Key Takeaways Intermediate and long-term bond yields continued their ascent in March.  Bond yields are rising for all the right reasons- economic activity is improving, fiscal policy is taking the baton from monetary policy, and financial conditions are supportive.  There is widespread anticipation for higher inflation in the short term, but […]

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Fixed Income Commentary – March 2021

“Getting Better” – The Beatles Key Takeaways Intermediate and long-term bond yields rose rather abruptly in February as investors digested the progress of the vaccine rollout and the return to a risk-on mindset. Fed Chair Powell’s comments to Congress during the month implied a “stay the course” message, emphasizing the need to support the economy […]

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Fixed Income Commentary – February 2021

“Honesty” – Billy Joel Key Takeaways Yields across the curve nudged higher in January, led by the 10-year Treasury yield piercing through the psychological 1% level for the first time since March 2020.  Considering the events of the past year related to the global pandemic, a print of 4% (annualized) on GDP gives us some […]

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Fixed Income Commentary – January 2021

“A Long December” – Counting Crows Key Takeaways Yields on the back end of the curve saw a bump up in rates as investors absorbed favorable vaccine news. Looking into 2021, bond investors will continue to watch the pace of economic recovery. While there is light at the end of the pandemic tunnel, there are […]

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Fixed Income Commentary – December 2020

“Man Smart, Woman Smarter” – Harry Belafonte Key Takeaways While equity markets hit new highs, US Treasury bond yields changed very little in November. Spreads on corporate and municipal bonds generally tightened during the month. With the 2020 election behind us investors will continue their focus on the speed of economic recovery from the pandemic. […]

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Tapping into Maple – Bond Basics – Understanding Premium and Discount Bonds

When investors purchase bonds they encounter terminologies like premium, discount, or par. Knowing what these words mean can help investors make better decisions about which bonds to purchase and understand how the bonds should behave after they have been added to their portfolio. Generally in life, the term discount signifies a good value. If you […]

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Fixed Income Commentary – November 2020

“Broken halos that used to shine” – Chris Stapleton Key Takeaways Fixed income returns were lackluster in October as Treasury bond yields increased. Despite the run up in yields, absolute yields remain low. In a low yield environment, investors continue to monitor corporate yield spreads over Treasuries to assess risk to reward. Right now, there […]

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Fixed Income Commentary – October 2020

“You Say You Want a Revolution?” – The Beatles Key Takeaways September’s FOMC meeting proved as one of the more notable in recent memory as the Committee confirmed the adoption of “flexible average inflation targeting (FAIT)”. The Fed has laid out a number of conditions that need to be met before raising rates, perhaps because […]

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Fixed Income Commentary – September 2020

“Can you Take Me Highter” – Creed Key Takeaways The Treasury curve steepened in August, partially in response to the Fed’s decision from Jackson Hole to recast its 2% inflation target to an average inflation target. As a result, most bonds had negative total returns during the month, with the exception of High Yield and […]

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