Securitized Products
Highlights Chart 1Permanent Job Losses Still Rising
Permanent Job Losses Still Rising…
Highlights Global Bond Yields: The growing divide between falling negative real bond yields and rising inflation expectations in the US and other major developed economies may be a sign of investors pricing in slower long-run potential economic growth in the aftermath of the COVID-19 recession…
Highlights Chart 1How Much Lower For Real Yields?
How Much Lower For Real Yields…
Highlights The Fed’s emergency lending facilities have successfully stabilized markets … : Credit spreads have tightened dramatically since March and liquidity has been restored to the US Treasury market. … at very little cost to the central bank: Just the announcement of Fed lending…
Highlights Chart 1More Stimulus Required
More Stimulus Required…
Highlights High-Yield: Our analysis of current junk spread levels relative to likely economic outcomes leaves us inclined to maintain our current recommended positioning: Overweight Ba-rated bonds, underweight bonds rated B & below. Fed/Treasuries: There is no urgency for the Fed to…
Highlights Chart 1More Stimulus Forthcoming?
More Stimulus Forthcoming…
Highlights Chart 1Low-Rated Junk Returns Are Lagging
Low-Rated Junk Returns Are Lagging…
Highlights Duration: While it’s possible that we are close to the US economic trough, we don’t see any immediate upside in Treasury yields. Investors should keep portfolio duration at benchmark and await signs of recovery in our preferred global growth indicators. Spread Product: Investors…
Highlights The Fed has been awfully busy since the middle of March, … : Over the last 30 days, the Fed has unleashed a barrage of measures to support market liquidity and alleviate economic hardship. … unveiling a package of facilities to keep credit flowing to consumers, businesses and…