How the Fed’s COVID-19 Programs Affected Markets and Investors

Since the start of the COVID-19 pandemic in March, financial markets have experienced levels of disruption not seen since the Global Financial Crisis of 2008. After bid-ask spreads widened dramatically in March across a broad array of fixed income sectors—including off-the-run U.S. Treasuries!—a series of Federal Reserve programs has restored investor confidence and liquidity, and […]

The Rise of BBBs: To Worry or Not to Worry?

Over the last year or so, the growth of BBB-rated debt as a percentage of the overall investment-grade corporate bond market has sparked significant debate among investors. The key issue: the implications to the fixed income market should bonds at the lowest rung of the investment-grade ladder be downgraded. Background: There are two distinct sections of […]