White Papers

By 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. 

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Much is written in the press about Janet Yellen, Federal Reserve Chair, and the “Fed.” But what does it mean and why should you care? This white paper will provide a brief history of the Federal Reserve, describe the make-up of the committees, and outline the mechanics of how it works. It will also provide information on the current challenges facing the FOMC and how its decisions can and will affect your investment returns.

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Since the Reserve Primary Fund “broke the buck” in September 2008, the SEC has been eager to adopt new rules governing money market funds.  After much debate, the new reform rules were finally released in July.  In this white paper we take a moment to address a few key questions.  What are the major components of the money market reform?  How will these changes affect institutional clients...

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As the SRI and ESG landscape continues to develop, we take a look at the history of responsible investing and the direction it has taken in recent decades.  We also explore the application of SRI and ESG principles to fixed income investing.  This covers not only the credit sector, but the options for application across all sectors.  

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Cheap sectors and individual securities exist in the fixed income market because of non-economic factors, such as investor preferences, supply/demand imbalances and size constraints.  These structural factors create pockets of inefficiencies, which can be exploited by smaller, more nimble investment managers.  The following paper provides a sampling of several strategies and processes Longfellow Investment Management Co. (LIM) follows to capitalize on these opportunities and add value for our clients.

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Tax rates are an important consideration in fixed income asset allocations. Tax exempt investors can benefit from “crossing-over” into tax-free municipals when municipal bond yields rise to abnormally high levels relative to taxable bonds. Conversely, taxable investors can benefit from the crossover trade in reverse, i.e. buying taxable securities when municipal bond yields are unusually low relative to taxable bonds.

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