Apollo: Non-Economic Factors Driving Bond Market
The U.S. 10-year real yield recently hit 2%, its highest since 2009. Despite a long-term economic outlook that has remained relatively stable, Apollo Partner and Chief Economist Torsten Sløk believes that non-economic variables may be driving outsized moves in the bond market, including the recent Fitch downgrade of U.S. government debt.
Opportunity in Investment Grade Bonds
Columbia Threadneedle Global Rates Strategist Ed Al-Hussainy told Bloomberg that, even as spreads are compressing in quality, he’s still seeing exceptionally attractive valuation opportunity in investment grade credit bonds at the short end of the curve. That’s on top of the all in yields that are around 5%.
The ETF Show - Strategies for Hedging Inflation
Nick Elward, ETF head of strategy at Natixis, shares the top concerns he is hearing from investors and why concentrated equity strategies are in such high demand. Nick Cherney, Head of Exchange Traded Products at Janus Henderson Investors, also discusses CLOs and other assets in demand for fighting inflation.
A Shift In The Yield Curve
After putting in a multi-month high near 44 basis points, the spread between 2-year and 10-year treasury yields has flattened to 29 basis points. What is the shift in the yield curve telling bond traders? Insights by Jim Iuorio with TJM Institutional Services.
The ETF Show - Remain Part-Goldfish, Part-Elephant During the Longterm Journey of Diversification Elements
Columbia Threadneedle Investments just launched its first semi-transparent ETF focused on a growing part of the technology industry. Head of Strategic Beta Marc Zeitoun, CFA explains the bull case for semiconductors and the many ways we use them in our day-to-day lives. State Street Global Advisors Head of SPDR Americas Research Matthew Bartolini, CFA also weighs in on why investors should still consider bonds despite their poor start to the year alongside equities.
Is the Bull Run in Bonds in Trouble?
For the first time since March 2019, 10-year U.S. treasury yields climbed through 2.75%. Can treasury bulls hold onto these gains? Insights by Jim Iuorio with TJM Institutional Services.
Macro Markets Podcast Episode 10: The Case for Bonds Now
Steve Brown, Assistant Chief Investment Officer for Guggenheim Investments, discusses first quarter market volatility, portfolio management decision making, and the case for bonds now. Also featuring Aditya Agrawal, Head of the Agency MBS Sector Team, and Jerry Cai, a Vice President in the Macroeconomic and Investment Research Group.
Macro Markets Podcast: Episode #7
An update on the investment grade corporate bond market in the wake of the latest CPI inflation data and the expected removal of monetary policy accommodation. Featuring Justin Takata, Managing Director and Head of Investment Grade Corporate Credit Sector Team, and Paul Dozier, Director in the Macroeconomic and Research Group.
Fed to Hike Rates Soon
Fed Chair Jay Powell said that soon it will be appropriate to raise the target fed funds rate, acknowledging that inflation is far above the Fed's long-term goal of 2% and the labor market is "very very strong." Powell didn't rule out the possibility of QT or rolling off the nearly $9 trillion balance sheet or offer timing guidance, except that this would not happen until after the start of rate hikes, which he called the Fed's "primary" tool.
The ETF Show - Flows Crush Calendar Record
Fund flows have already cruised to a new calendar year records and we still have 3 months to go in 2021. Matthew Bartolini of SSGA shares two areas where he is eying opportunities and Marc Zeitoun of Columbia Threadneedle Investments explains how investor appetite for the short end of the curve led to the launch of a new smart beta bond fund. Tags: ETFs, Bonds
Interest Rate Hike Could Come in 2022, Fed Dot Plot Shows
The Fed didn't touch interest rates or its bond purchases at the September meeting, but Powell hinted that a tapering announcement could be coming in November. "So long as the recovery remains on track a gradual tapering process that concludes around the middle of next year is likely to be appropriate," said Powell. He reiterated that tapering does not mean rates are going anywhere right away, but the Fed's latest dot plot did show that half of policymakers now expect a hike in 2022.
Total Return Bond Fund
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