4 min readWatch the webcast: Click the above video webcast by Capital Advisors Group EVP Stefan Spazek. Some managers of emerging growth companies who took out loans prior to the pandemic may now be confronting the prospect of violating covenants written into their debt agreements. Debt covenants are financial and/or performance-based requirements that lenders put on borrowers…
2 min readProtesting Police Brutality Nationwide protests continued for the seventh day and night following the killing of George Floyd while in the custody of Minneapolis police. President Trump has considered invoking the Insurrection Act of 1807, which would allow the deployment of active-duty military personnel in response to civil unrest. The law was last used in…
1 min readWatch the webcast: Click the above webcast link for episode 1 of Credit Update. Hosted by Capital Advisors Group’s Director of Investment Research and Strategy, Lance Pan. Topics covered: Recap of Recent Market Events How to Balance Credit Risk in a Portfolio During Times of Economic Volatility (e.g., COVID-19) Overview of Corporate Paper (CP) Bid-Ask…
2 min readApril Unemployment Report Shows Record Job Losses The April unemployment report released on May 1st reflected a loss of over 20 million jobs, and an unemployment rate over 14%. The number of newly unemployed in April wiped out the last decade of job gains, and the unemployment rate easily beat the previous 10.8% high recorded…
8 min readThe oil and gas industry is being hit hard from all sides, with a historic glut and a collapse in demand for oil occurring simultaneously. Given the current situation, drastic production cuts across the world will be necessary to support the oil market and limit its inevitable ripple effects on the broader world economy. While…
2 min readFOMC Meeting The Federal Reserve has taken extraordinary steps over the past six weeks to shield the economy from the massive fallout of the virus pandemic, including emergency interest rate cuts, massive bond purchases and the opening of multiple lending facilities to provide liquidity and backstops to the fixed income markets. Following their regularly scheduled…
1 min readWatch the webcast: Click the above webcast link for episode 1 of Market Update. Hosted by Capital Advisors Group’s Head of Trading, Anthony Cucinotta. Topics covered: Recap of Recent Market Events FOMC Rate Cut and Impact U.S. 1 Month Treasury Bill Analysis COVID-19 Impact on Short-term Investors Overview of OAS Adjusted Spreads Overview of FOMC…
2 min readEconomic Shutdown We are only just seeing initial readings on the state of the post-COVID 19 economy and much will unfold in the months ahead. Data released in early April reflects the dismal reality of the large-scale shutdown of the US economic growth engine. Jobless claims have surged to record levels, with more than 22…
1 min readLargest Relief Package in U.S. History Signed On Friday, President Trump signed a $2 trillion stimulus plan following a 96-0 vote in the Senate and strong support in the House. The bill extends aid through direct payments and expanded unemployment insurance to many struggling Americans, provides loans and grants to businesses, supports draining state funds…
2 min readCoronavirus While domestic economic growth began the year on solid footing, the worldwide spread of the coronavirus along with its effects on global supply chains and potential effects on aggregate demand are likely to dominate financial market movements through springtime. U.S. equity markets sank 15% last week in the fastest ever return to correction territory…