18 min readWe identify three themes to watch for cash investors each year. For 2021, we focus on vaccines, ESG and LIBOR replacement. DOWNLOAD FULL REPORT Introduction At the start of each year, we typically name three broad themes that we think will have the greatest potential impact on the short-term debt markets. Our 2020 picks posed…
2 min readAfter experiencing the most tumultuous year on record, the major stock indices finished 2020 in a strong manner. On the last day of December, the S&P 500 logged its 14th record close of 2020 while the Nasdaq just missed its 56th record close by approximately 10 points. For the year, the DJIA rose 7.2%, the…
5 min readThe 2020 election was an arduous and, in some ways, incredible process, with the unprecedented number of mail-in ballots resulting in record turnout, but also a significant delay in announcing the winner. Nevertheless, we know that Joe Biden will be the next President of the United States come January. In all likelihood he will face…
2 min readFed officials are committed to the current level of rates until inflation exceeds 2% Several Fed officials spoke in late September on the timing of future interest rate hikes in relation to the inflation target of 2%. Chicago Fed President Evans reversed his earlier position that the Fed could start raising rates before inflation reaches…
2 min readFOMC Minutes Released The minutes from the FOMC’s July 28-29 meeting were released today. In the committee’s discussion about how to continue to support the flow of credit to consumers, they deemed “it would be appropriate over coming months for the Federal Reserve to increase its holdings of Treasury securities and agency residential mortgage-backed securities…
5 min readThe coronavirus pandemic has forced firms across industry groups to shore up liquidity in order to weather depressed revenue streams. These conditions, coupled with accommodative economic policies, led to a spur of borrowing during the first half of 2020. Due to this current climate, many companies are having trouble finding solid financial footing, leading to…
1 min readCOVID-19 infection rates have fallen dramatically in most industrialized nations, but new cases in the U.S. and in developing countries have surged to record levels in the last few weeks. Despite the serious setbacks, lawmakers in the U.S. continue to grapple with how to most appropriately implement mask requirements to slow the spread of the…
2 min readStates across the U.S. set multiple single day records for new COVID-19 cases this past week. On June 27th, Florida reported 9,500 new cases, breaking its own record for daily new cases, which it set just a day earlier. Driven primarily by Southern and Southwestern states, the surge has forced legislatures to act. Florida has…
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…
12 min readDOWNLOAD FULL REPORT Abstract Extraordinary market volatility from COVID-19 led to a complete reset of portfolio strategies and expectations in cash investments. While liquidity has turned the corner, the path to recovery and a normal investment environment may be a long one. Fighting credit issues on one hand and the risk of negative interest rates…