Strains in parts of the financial system have prompted the Federal Reserve to trim back tightening plans.
We do not see signs of systemic risk, but further volatility is likely in the near term.
Political brinksmanship over the debt limit is poised to push the Treasury to the edge.
Matt Toms, CFA
Global Chief Investment Officer
Banking troubles have forced a timeout on the market’s obsession with inflation and rates. But the long game still needs to play out.
Join Matt Toms, Global Chief Investment Officer as he discusses this and more.
Matt Toms, CFA
Global Chief Investment Officer
Highlights from the week of March 17 – March 23, 2023
Strains in parts of the financial system have prompted the Federal Reserve to trim back tightening plans.
We do not see signs of systemic risk, but further volatility is likely in the near term.
Political brinksmanship over the debt limit is poised to push the Treasury to the edge.
A tight labor market is keeping the Fed in a rate-hiking mode.
Higher income has reduced near-term risk and is setting up the bond market for a run of attractive long-term returns.
Barring a deep, prolonged recession, we expect leveraged borrowers to successfully navigate the late cycle backdrop given relatively healthy fundamentals.
Barring a deep, prolonged recession, we expect leveraged borrowers to successfully navigate the late cycle backdrop given relatively healthy fundamentals.
Are bond investors right about US rate cuts, or will the Fed hold rates steady following the end of the hiking cycle? Watch the labor market.
Soaring mortgage rates have massively reduced prepayment risk, creating one of the most compelling entry points for GNMA bonds in more than 20 years.