Farewell To An Old Friend
Last year, with credit spreads tightening close to historic levels, it seemed appropriate to us to take a more prudent stance and move to a more balanced portfolio.
Insights Topic
Government Bonds
Is It Time To Buy The Dip?
We have had a lot of discussion, both internally and externally, over the last few days around when might be the time to begin adding more risk to portfolios again.
Yield Curve Flattening to Pause
This significant flattening came about as the Fed signalled its determination to push through policy normalisation, with four hikes now expected for the calendar year 2018, which would take the upper bound of the Fed Funds rate to 2.5% by year-end.
This Cycle’s Low Yields Are Behind Us
Credit metrics, as measured by the rating agencies, continued to improve throughout the first half of this year, with all corners of the globe having comfortably more upgrades than downgrades.
Will mortgage rates paint the Fed into a corner?
In recent weeks we have talked often about the tightening of lending standards, the possibility of the end of dot plots, and especially the shape of the US yield curve – today’s blog encompasses all three.
Why Draghi Really Cares About Italy
Aside from the fact that he is Italian and once served as governor of the Italian central bank there are other reasons why Mario will be concerned at the price action in Italian Government Bonds (BTPs).
How Concerned Is The Fed With The Yield Curve?
After another week of yield curve flattening, we now have the 2s-10s curve in US Treasuries at just 43 basis points.
Other Recessionary Indicators
Having discussed the shape of the yield curve as a recessionary indicator already last week, we would like to elaborate on what other indicators we look at as fixed income investors to determine where we are in the economic cycle, which in turn determines how we position ourselves on the yield curve and whether we look to credit risks or government bond risks.
Yield Curve Shape and Recessions
The rapidly flattening US Treasury yield curve is prompting a lot of questions about the shape of the curve and it being a good predictor of upcoming recession.
Q2 Could Be The Best For Risk in 2018
As we now are well into the Q1 earnings season we have been debating how the current quarter could well be the best for risk in 2018.
Surprise or Shock to the System
One of the most important considerations for us as bond investors is determining where we are in the economic cycle.
Make Way For Supply
Today marks the start of a very busy week for participants in the US Treasury market.