White Papers
History was made on August 14, 2019, with the recording of the lowest closing yield (2.02%), on the 30-year U.S. Treasury since regular auctions began in 1977. The previous lowest closing yield (2.099%) was recorded on July 8, 2016.
Read moreSince its origination in 1986, the London Interbank Offered Rate (LIBOR) has been a standard benchmark for short-term rates. LIBOR is reset daily based on submissions from a collection of contributing banks. These banks submit yields at which they believe they could obtain short-term loans from other banks. The average rate sets the benchmark for floating rate securities and other financial transactions.
Read moreThe Tax Cuts and Jobs Act of 2017 (TCJA) was signed into law on December 22, 2017. Most provisions of the new law affecting individuals and businesses went into effect on January 1, 2018, including new tax brackets and new standard deductions. One of the most dramatic changes is the approach to corporate taxes. TCJA lowers the corporate income tax rate to 21% and moves the United States from a worldwide to a territorial system of taxation.
Read moreTax rates are an important consideration in fixed income asset allocations. Many investors in high tax brackets assume they should be invested entirely in tax-free municipal bonds, while tax-exempt investors (e.g. foundations, pensions funds) ignore tax-free bonds altogether. In both cases, investors would be better served to consider a more balanced approach, focusing on the potential after-tax return and risk of all fixed income sectors.
Read moreAt LIM, our goal is to provide strong risk-adjusted returns within the framework of our clients’ investment objectives. Meeting performance objectives demands that risk be scrutinized for each investment decision. We accomplish this through rigorous bottom-up, proprietary analysis focused on credit fundamentals, relative valuation and market technicals. This risk management guideline has been applied to our customized portfolio strategies for over 30 years.
Read moreBy October 14, 2016, money market funds must be in compliance with the reformed money market requirements issued in July 2014. The major shift in this reform requires prime and tax-exempt money market funds to be priced at a floating net asset value (NAV), which introduces the possibility of realizing losses or holding securities that have an unrealized loss.
Read more