Macroeconomic Alphabet Soup: V, W, L, U, or K?

While certain sectors of the economy have rebounded more quickly than expected, the trajectory of the recovery is still unclear.

Equities Stage Big Rebound, While Bonds See Small Gains; Real Assets Mixed

Equity Markets U.S. stock indices continued to rebound from the 1Q plunge; the Russell 1000 was up more than 50% from the low reached on March 23. The S&P 500 Index was up 8.9% for the quarter, bringing its year-to-date result to 5.6%. However, returns among constituents painted starkly different pictures. Consumer Discretionary (+15%) was […]

How ESG-Minded Investors Can Help Address the Affordable Housing Crisis

Institutional investors with a focus on environmental, social, and governance (ESG) investing can help address the housing crisis through investment opportunities in both the public and private markets…

Stocks Rebound in 2Q20; Fixed Income Sees More Modest Returns

U.S. stocks posted double-digit returns, with big gains in global ex-U.S. markets. Treasuries were range-bound during the quarter and most fixed income indices posted solid but not spectacular returns

Main Street vs. Wall Street

While Wall Street was in celebration mode, much of Main Street continued to suffer. Against the backdrop of stellar asset price performance, rising cases of the virus in the U.S. tempered optimism going into quarter-end

Fixed Income Market Offers Many Options for ESG Investors

More investment managers are applying ESG analysis to bonds, and many have developed customized ESG frameworks to specifically evaluate various segments of the global credit market

Why Bankruptcies by States Are Unlikely

Senate Majority Leader Mitch McConnell’s comments that he would favor allowing states to declare bankruptcy rather than receive aid from the federal government led to questions about the impact on state finances and the municipal bond market. Based on input from managers, this is an unlikely scenario. Here’s a brief summary of the important points […]

U.S. Treasuries the Lone Safe Haven in a Rocky First Quarter

U.S. fixed income U.S. Treasury yields fell to record lows in March as investors sought safety and the Fed cut rates to 0%-0.25%. The 10-year U.S. Treasury yield reached a low in March of 0.31% before closing the quarter at 0.70%, down sharply from the year-end level of 1.92%. Other sectors significantly underperformed U.S. Treasuries, […]

Pandemic Fears Roil Equities Across the Board

U.S. stocks The S&P 500 Index plunged 19.6% in the first quarter, its worst quarterly return since the Global Financial Crisis. After falling more than 30% from peak to trough in just a few weeks, the Index rallied 20% going into quarter-end as investors were heartened by the prospect of a $2 trillion stimulus package. […]

Fed Sends Strong Message, but More Needed

On Sunday, the U.S. Federal Reserve announced several measures intended to provide liquidity and restore confidence in the markets: An emergency rate cut: Fed Funds Rate was cut 100 bps to 0.00% to 0.25%. The Fed is committed to keeping rates at the zero lower bound until “it is confident that the economy has weathered […]