Commentary

ESG is Not Enough: Why Intention Matters

In January, during the market frenzy which saw GameStop Corporation on stock go from approximately $20 to nearly $500 intraday within two weeks, some asked why the company did not capitalize on the demand by issuing shares.

Commentary

Three Fixed Income Predictions for the Roaring 2020’s

Today, we find ourselves with particularly high confidence in the likelihood of three scenarios to which we believe all investors should be paying close attention. First, we anticipate the current market euphoria will likely last through the summer. 

Commentary

The Fed’s Blindspot

I don’t say this often, but Fed Chairman Jerome Powell is wrong. Regular readers of our investor letters and other publications will recall that we regularly cite Chairman Powell as doing the best he can with the levers he has while arguing correctly for others to do their part.

Commentary

History in the Making

So… who is right? Can we learn from history, as Santayana believes? Or has the past just set the table for what’s to come, as Shakespeare wrote? Is the future determined by the past, as Vonnegut argues? Or are the two unrelated, as the SEC requires fund managers to tell their prospective investors? We suggest that the answer to all of these questions is yes.

Commentary

Now Is The Time To Buy Cheap, Not To Buy Everything

In 2019, the bull market thinking of fixed income investors argued for a more disciplined approach to risk and return. The markets today are facing very different circumstances, but are suffering from the same lack of risk management.

Commentary

Negative Rates Explained: Your Bank, Your Currency, Your Future

Fed Funds futures are predicting that the Federal Reserve will lower their benchmark Fed Funds rate below zero by mid-2021. Will this really happen?

Commentary

Robbing 2020 to Pay 2019: A Reality Check for Fixed Income

Fixed income markets are different from equity markets. This statement is absurdly self-evident when put into writing. But it’s not as obvious when put into the context of today’s market dynamics.

Commentary

Can’t We All Just Get Along? Distinctions, Differences and Diversification

Like politics, investing philosophies are polarizing: be it a debate on active vs. passive or direct investments vs. funds. For fixed income, we lay out differences between indexed exposure to high yield and bank loans vs. fundamentally selected portfolios—and recognize there may be room for both in portfolios.

Commentary

Advisors Find a Road Less Traveled in Fixed Income

There is a small but growing community of advisors who are leaving behind the old ways of picking managers in an effort to give their clients something they can’t get on their own or from a robo-advisor.