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Weekly Client Letter – October 23, 2023

The longstanding image of U.S. government bonds as an unshakable cornerstone in investment portfolios is under strain due to recent market developments. The Federal Reserve’s assertive tightening policies, combined with significant government bond issuances to cover expanding deficits, have resulted in unprecedented declines in long-term Treasuries. This shift was further emphasized when Fed Chairman Jerome […]

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Weekly Client Letter – October 16, 2023

Higher interest rates are poised to pose a significant challenge to the high-grade investment-grade bond market, particularly those sensitive to interest rate changes. Looking at the Bloomberg U.S. Bond Index (AGG), which encompasses investment-grade corporate bonds and treasuries, it’s evident that the past year was far from smooth sailing. The most substantial drawdown the index

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Weekly Client Letter – October 2, 2023

2022 served as a stark reminder of the challenges inherent in traditional fixed-income investments. The dramatic double-digit declines experienced by treasuries and investment-grade bonds raised concerns, particularly for those who consider these assets as reliable safe-havens. This left investors with few options because while viable alternatives like private debt have long been available, access to

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Weekly Client Letter – September 25, 2023

The Federal Reserve made headlines this week with its decision to keep interest rates steady, hinting at the possibility of one more rate hike later this year. It was a slightly more hawkish stance than what the market had expected, especially in the context of the “high-for-longer” narrative. The idea of “higher-for-longer” interest rates raises

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Weekly Client Letter – August 28, 2023

Higher rates are making bonds and other income-generating investments look pretty enticing. Some of these yields haven’t been this good in over a decade. It sounds like a win-win, right? Investors should be cheering about the boost in interest income. But wait, there’s a plot twist. Rising interest rates aren’t just bringing more interest income

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