Insights

June 2021 Market Review

Inflation has become the cause celebre in today's bond market. With additional federal stimulus enacted, a very ambitious infrastructure program on the table, and the Federal Reserve still providing highly accommodative monetary policy, 2021 began with investors becoming increasingly concerned about the risk of a prolonged inflationary environment. With an assist from widespread vaccinations and with the "re-opening trade" in full gear, rates rose early in the year as a result. 

Strategy Highlight: The Case for Equity Income

In the current environment of low interest rates and bond yields, investors seeking income might consider looking to dividend-paying stocks as an investment option. History has shown that investing in dividend-paying stocks not only provides shareholders with income, but also has been an attractive investment strategy in terms of total return and as a complement to fixed income investments. 

May 2021 Market Review

Volatility in interest markets was modest throughout May. The U.S. Treasury benchmark 10-year note traded within a 15-basis point (bp) range, ending the month just 4 bps lower. Paper up and down the curve traded likewise, but short Treasuries barely moved. 

April 2021 Market Review

April was characterized by very good economic news, major fiscal policy proposals, and a somewhat surprising mini-bond market rally. The benchmark 10-year U.S. Treasury yield ended the month 12 basis points (bps) lower, and the 2- to 30-year curve slope ended the month 10 bps flatter.

March 2021 Market Review

Anyone who thought that the new year might come with a return to some sense of normalcy has been sorely disappointed. On the policy front, the year began with an attack on the U.S. Capitol building by protestors hoping to force Congress to effectively override the results of the presidential election. The political makeup of the Senate was finally decided by runoff elections in Georgia. A massive surge in post-holiday Covid infections occurred, ironically at the same time as the widespread rollout of vaccines. 

February 2021 Market Review

During February, the bond market reacted to a bevy of growth-positive economic releases, ranging from retail sales to personal income to industrial production. Moreover, the new administration's $1.9tn recovery package moved through the House and appeared to make it through the Senate largely intact. At the same time, optimism grew over the rollout of Covid vaccines. 

January 2021 Market Review

All eyes remained on the pandemic and policy as the new year began. An anticipated post-holiday spike in Covid infections materialized and then began to abate by midmonth. Democratic victories in Georgia increased the likelihood of additional stimulus. With positive economic releases early in the month, "risk-on" remained the preferred trade.

January 2021 Market Review

All eyes remained on the pandemic and policy as the new year began. An anticipated post-holiday spike in Covid infections materialied and then began to abate by midmonth. Democratic victories in Georgie increased the likelihood of additional stimulus. With positive economic releases early in the month, "risk-on" remained the preferred trade.

December 2020 Market Review

The challenge in writing periodic market commentaries is often to make interesting what was essentially more of the same. Not a problem for 2020. It is difficult to overstate how extraordinary the year was. A pandemic, remote conferencing technology, and government economic policies created a sea of change that will be felt for years to come. 

December 2020 Market Review

The challenge in writing periodic market commentaries is often to make interesting what was essentially more of the same. Not a problem for 2020. It is difficult to overstate how extraordinary the year was. A pandemic, remote conferencing technology, and government economic policies created a sea of change that will be felt for years to come. 

 

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