14 min readIntroduction With the 75-basis-point hike in the Fed funds rate on September 21st, Fed officials now peg their median forecast for the key policy rate in the 4.25%-4.50% range by the end of the year. The resulting rise in bond yields has been so breathtaking that the previous expectation that Fed funds would end the…
8 min readInflation and recession, two words on the top of every investor’s mind right now. In our recent post on Inflation Winners and Losers, we talked about how the near-term outlook for inflation is relatively entrenched. This matters because the Fed has thrown the weight of its credibility on reducing inflation, raising interest rates aggressively since…
6 min readIn the past twelve months, inflation has slowly become one of the greatest issues challenging the global economy. As the Fed has responded with the most aggressive interest rate increases in decades, treasury professionals have an opportunity for higher return potential on their cash investments. However, they need to be aware of the impact inflation…
7 min readThe old saying that the only constant is change rings true in the realm of ESG investing. The pace at which the ESG landscape continues to shift is remarkable, and it routinely leaves government organizations, companies and investors struggling to keep step. Perhaps unsurprisingly then, there is now a demand for greater consistency and transparency…
6 min readWhile most major integrated oil and gas companies have expressed alignment with the Paris Agreement, efforts made by U.S. players to address climate change with a transition to more renewable energy sources have fallen short in comparison to their European counterparts. As some drag their feet on sustainability efforts, governments, world organizations and financial institutions…
5 min readThe COVID-19 pandemic produced the first major test for the U.S. banking system since the 2008 global financial crisis. At the start of the pandemic, questions were posed about how bank balance sheets would hold up amidst a period of social isolation, lockdowns, elevated job losses and a severe contraction in output. Would the banks’…
1 min readIn this webcast, Lance Pan defines ESG, discusses how to apply ESG to fixed income and cash investments, and outlines how you can select an ESG provider. Watch the webcast: Click the above webcast link for episode 3 of Credit Update. Hosted by Capital Advisors Group’s Director of Investment Research and Strategy, Lance Pan. Topics…
6 min readWith 48 potential SARS-CoV-2 vaccines now undergoing clinical trials on humans, there’s mounting hope that one or more will be available in 2021. But many unknowns remain, especially regarding potential financial implications for the pharmaceutical companies that produce them. Timing of their arrival, manufacturing capacity, distribution, levels of potential government support, overall costs, and final…
3 min readThe auto industry has been one of the hardest hit sectors since the pandemic began. In April, US auto sales hit a low of 8.6 million vehicles, down from 16.8 million at the end of February. Moody’s expects vehicles sales to fall at least 20% in 2020 and will take several years to return to…
6 min readBecause credit card asset-backed securities (ABS) are tied directly to the strength or weakness of consumer finances, economic downturns can be perilous to their health. Therefore, it’s no surprise that the high unemployment and low consumer spending in the current economic downturn are putting ABS under scrutiny. So far, however, this class of securities has…