Media – Blog
November 13, 2019
After three interest rate cuts since July, the Fed signaled last month that it finally expects to take a breather, with no more moves for a while. But that only means we have to start wondering what may come next. Will the recent spate of positive economic news prompt the
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November 4, 2019
In a move that was widely expected, the Federal Reserve cut rates last Wednesday by 25 basis points to the 1.50% to 1.75% range. Seven officials voted for the cut, and two (Esther George and Eric Rosengren) dissented again in favor of no change in monetary policy. Because the rate
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November 4, 2019
In a move that surprised no one, the Federal Open Market Committee (FOMC) cut rates by 25 basis points at its October meeting, the third cut in as many months. The current Federal Funds rate range now lies at 1.50%-1.75%, still relatively high compared to short-term rates in other G8
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October 18, 2019
Everchanging speculation on tariff war developments continues to drive bond market volatility as well as projections on potential interest rate cuts. Earlier this month, a mini-deal between the Trump administration and Chinese officials buoyed market sentiment when additional tariffs slated for implementation in December were delayed and China agreed to
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October 18, 2019
When overnight repo rates temporarily rose from 2% to 10% in September, some dismissed the spike as an unfortunate but rare confluence of idiosyncratic circumstances. But if that makes you think the liquidity crunch was a one-time event, think again. Our October research report, Repo Ruckus Reveals Hidden Issues in
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October 15, 2019
The interest rate blues are well in effect. For those with enough foresight to see this coming (and thus to load up on long-duration Treasury bonds) it has been an absolute riot. For the rest of the fixed income investment community, it’s been a bit of a bloodbath. Figure 1:
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September 26, 2019
Are you feeling as uneasy as I am? China's growth is slowing, Brexit is looming, and winds of war in the Middle East have sent oil prices on a roller coaster. Closer to home, the yield curve is inverting, corporate debt is mushrooming, and just last week Wall Street and
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September 23, 2019
This past week saw some nearly unprecedented chaos in repo markets. Beginning late Monday and extending into Tuesday morning, funding in overnight cash markets essentially dried up, sending investors scrambling for liquidity. This resulted in a surge in repo rates for those who did transact, with overnight rates jumping from
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September 18, 2019
Today, the Federal Open Market Committee announced a 25 basis point cut in the overnight fed funds rate to a range from 1.75% to 2.00%, the second such action this year. In a normal week, building anticipation for the Fed’s policy decision and press conference would typically dominate the markets,
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September 17, 2019
For early-stage companies seeking debt financing, the most obvious questions are often the most difficult to answer. When is the most appropriate time to pursue debt financing? Why should you consider debt at all? And how much should you borrow? At Capital Advisors Group, we've advised hundreds of companies on
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