The Case For Adding Duration
As an active fixed income manager, one of the most frequent questions we’ve been asked in the past year is, with shorter bonds out-yielding longer ones, why wouldn’t you just buy the shorter ones?
Review and
Outlook
September 2023
“The markets expected Powell’s Jackson Hole speech to represent a major policy shift, akin to 2022’s “steely resolve to beat inflation.” They were disappointed; Powell’s remarks were neutral enough that both hawks and doves came away believing he was in their camp.”
Learn MoreAugust 2023
“While one month does not make a trend, July was a very good one for US economic releases and the Federal Reserve’s fight against inflation.”
Learn MoreJuly 2023
“While the June 14th Fed meeting gave us the “hawkish pause” the market was anticipating, investors severely underestimated the degree of hawkishness the Fed delivered.”
Learn MoreJune 2023
“Washington’s debt ceiling showdown might have dominated the news in May, but it ultimately proved to be a non-event. We became more confident in the outcome once President Biden and Speaker McCarthy stepped back and appointed a team of negotiators, and while both men’s public remarks continued to cause market gyrations, the eventual compromise passed with broad bipartisan support.”
Learn MoreEconomic and
Market Commentary
08.23.2023
Urban Budget Analysis Requires Looking Beyond The Headlines
“Extraordinary periods of time often introduce structural changes long after the precipitating event passes, and by many measures the impact of COVID-19 fits this pattern. The pandemic has changed many societal and economic dynamics, most notably through a dramatic increase in remote work arrangements.”
Learn More08.07.2023
US Credit Taken Down a Notch
“On the evening of August 1st, Fitch downgraded the US Treasury credit rating from AAA to AA+, and lowered federal agency debt, including Fannie Mae and Freddie Mac, in line to AA+ one day later. This follows S&P’s downgrade in August of 2011, and leaves Moody’s as the last of the three major ratings agencies to rate the US Treasury at Aaa.”
Learn More07.26.2023
The Case for Adding Duration
“As an active fixed income manager, one of the most frequent questions we’ve been asked in the past year is, with shorter bonds out-yielding longer ones, why wouldn’t you just buy the shorter ones?”
Learn More05.23.2023
Debt Ceiling Drama: Thoughts and Implications
“The debt ceiling refers to a limitation imposed by Congress back in 1917 that caps the amount of outstanding debt that the US can offer. Currently $31 trillion, the debt ceiling relates to Treasury’s ability to fund appropriations Congress has already approved, not future spending. The task faced by policymakers is hardly new – Congress has raised or extended the debt ceiling 78 times since 1960.”
Learn MoreQuarterly
Perspectives
Q2 2023
Diversification & Risk: A Deeper Look Can Be Revealing
“Atisa Dipamkara, a revered 11th century Buddhist philosopher, once said, “The greatest wisdom is seeing through appearances.” His insight into looking beyond first impressions resonates in today’s investment world. While diversification has long been touted as a means of mitigating risk, we recognize that it is far from solely determined by the number of securities held in an index or portfolio.”
Learn MoreQ1 2023
Building Strength Through Diversity
“Human capital lies at the heart of business as well as society at large . . . The subject of diversity, equity, inclusion, and belonging (“DEIB”) transcends academic analysis and has recently taken on a heightened cultural focus.”
Learn MoreQ4 2022
Navigating Turbulent Times
“We will refrain from offering a comprehensive year-end market retrospective . . . Instead, our objective is simply to draw upon 2022’s investment experience as a means of reinforcing more personal, timeless planning guidance.”
Learn MoreQ3 2022
Managing Market Emotions and Biases
“Warren Buffett’s contrarian investment philosophy likely resonates with many who embrace a value-oriented mindset. While there is inherent logic in this time-tested recommendation, adhering to advice of this nature presents practical challenges.”
Learn More
