Insights

Highlights from the week of July 29 – August 4, 2022

Risks are rising: the Fed must thread a narrowing needle-eye to stop inflation without causing a recession. We’ve lightened equity positioning and reduced risk within fixed income segments of portfolios.

Big data is fueling, informing and empowering businesses globally. As growth-oriented investors, we see opportunities in best-in-class companies that are creating the technologies driving big data services.

These are the six major themes influencing positioning across our fixed income portfolios for the second half of 2022.

Shifts in the mortgage landscape are creating a compelling opportunity in GNMAs, which currently offer attractive relative value.

Human behavior is predictable—regardless of the state of the economy, people will get married, have children and buy homes.

As investors face heightened inflation risk and other uncertainties, look beyond traditional investment buckets to capture alternative sources of returns.

Securitized credit isn’t complicated. It’s an investment involving predictable consumer behaviors that have fueled economic growth for generations.

Now that yields have reset higher, bonds are positioned to protect portfolios while delivering higher income.

Floating-rate income and the secured nature of senior loans may provide a valuable defense against both rising rates and higher default risk for investors able to stomach short-term volatility.