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 […]
“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 […]
“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 […]
Falling Leaves, Rising Markets Quarter in Review • Equity market performance was solid this quarter. • The technology sector pulled back after strong YTD outperformance. • Second quarter GDP was the worst since the Great Depression but there is hope that the third quarter will be quite strong. • The list of things to worries […]
“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 […]
“Don’t Think Twice, It’s All Right” – Bob Dylan Key Takeaways Treasury yields fell and yield spreads narrowed across most sectors in July. While narrowing of spreads is great for existing holdings, it makes the search for new investments more challenging. Looking forward, investors will look towards the pace of rehiring and the willingness of […]
Yield Curve Control in Action? Key Takeaways Bond markets were steady in June despite volatility in the equity markets, on-going pandemic news, and social unrest across the globe. The Fed has made it clear they will implement policy support as needed to keep the recovery on track. Looking forward, investors will continue to assess economic […]
“Wild World” – Cat Stevens Maple Capital Strategy & Portfolio Changes Changes made this quarter included the sale of Goldman Sachs in favor of Morgan Stanley, preferring Morgan for its lower credit sensitivity and strong wealth management franchise. We also added American Express in the financial sector since we believe the business model is built […]
Take a Seat…Let’s Chat About Fixed Income We hope you are well at this unusual time in our lives. Key Takeaways Both equity and fixed income markets saw a “risk on” trade in May as progress was made on vaccines, economic re-openings, and the scale of government/central bank intervention. Spreads across corporate and municipal bonds […]
(Sort of) Open for Business Key Takeaways Confidence returned to the fixed income market in April as the Federal Reserve announced a number of programs to alleviate liquidity concerns. The economy contracted at an annualized 4.8% during the first quarter. The expectation is for economic data to remain weak. However, the key issue now is […]