Market Insight for Cash Investors

Recap and insight on the economy and your cash portfolio in 2023

After continuous increases in interest rates by the Federal Reserve (“the Fed”) since March 2022, it seems we may have reached the inflection point and that the Fed may begin interest rate cuts starting in 2024. Watch our latest Quarterly Cash Update to recap the state of the market in 2023, get insight into the credit environment heading into 2024, and learn tips on how cash investors can take a strategic approach to their portfolios.

• Anthony Cucinotta, Head Trader, discusses the Fed and the market’s predictions for interest rate cuts starting in 2024. Throughout the year, he has also seen increased volatility in treasury yields, noting large swings even on the front end of the curve. Despite such volatility and geopolitical pressures, he believes that “we are still moving forward because we believe duration is key here and it is important to lock in rates.”
• Lance Pan, CFA, Director of Investment Research and Strategy, notes that despite the likelihood of interest rate cuts in 2024, there are still some uncertainties and we can’t predict exactly how the Fed is going to react. Because of this he believes, “it is a good idea to stay with high-quality liquid names.”
• And Kate Ryan, Senior Portfolio Manager, believes that as we top out on the rate cycle, it may be prudent to make extensions out on the curve. She suggests adding duration when possible in order to help preserve income and yield on portfolios.

At Capital Advisors Group, we have spent more than 32 years advising institutional cash investors on how to manage portfolios that are designed to help preserve principal, provide liquidity and maximize risk-adjusted return. Our latest Quarterly Cash Update is only the most recent example of the kind of depth and breadth of experience that we offer cash investors every day.