Advisories, Observation Deck

 

Observation Deck
June 03, 2013 Posted by

In the past month, there has been quite a bit of rhetoric regarding quantitative easing and whether or not the Fed will be tapering off asset purchases anytime soon. The lack of confidence in the Fed's easing of monetary policy coupled with an improved economic landscape hints at a possible slowdown in the pace of asset purchases. These factors could mean short-term rates are at a bottom, which leads to the question: Is it time to consider increasing floating-rate bonds, or floaters?

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Observation Deck
April 30, 2013 Posted by

he Federal Reserve first began its asset purchase program in the fall of 2008 to combat the financial crisis. Almost five years later, with slow GDP growth, high unemployment, and non-present inflation, the Fed is well into its third purchase program. Some investors fear these actions will spark higher inflation. We believe this shouldn’t be a concern — at least in the short run.  

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Observation Deck
February 27, 2013 Posted by

Four years of quantitative easing and an essentially zero percent target rate have certainly had an impact on the bond markets and corporate cash management. We saw the Fed's balance sheet balloon to over $3 trillion in January, the ten-year Treasury note hit an all-time low of 1.39 percent in July of last year, and U.S. corporate bond issuance had a record year with over $1.3 trillion in new issuance. Now that we are two months into 2013, it might be worthwhile to take a look at how this year is shaping up in terms of corporate bond issuance and what that means for corporate cash investment portfolios.

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Observation Deck
January 02, 2013 Posted by

As 2012 ends and 2013 begins reflection seeps in. There were many economic highlights and events this year that lead us to close the year on a hopeful note.

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Observation Deck
November 30, 2012 Posted by
Positive developments in the housing industry have encouraged the SVB Asset Management credit team to re-evaluate mortgage-backed securities (MBS). MBS came under fire during the financial crisis due to the struggles of housing agencies Fannie Mae and Freddie Mac.
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Observation Deck
October 31, 2012 Posted by

QE3, QE Infinity, Q-Eternity are just some of the expressions for what the Fed's latest round of stimulus has been dubbed. At the September FOMC meeting, policy makers embarked on further accommodation in the form of mortgage-backed security purchases in an effort to stimulate growth in the midst of persistently high unemployment, headwinds stemming from the European debt crisis and an imminent tightening of fiscal policy. The interesting point about QE3 is that it is open-ended. This means that the Fed will continue to purchase bonds or employ additional policy tools until the labor market improves "substantially" which then brings into question its forward guidance of mid-2015.

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Observation Deck
October 01, 2012 Posted by

In recent months, the financial markets have been focusing on Europe, the Fed, the fiscal cliff, and even money market fund reforms. One topic that has not received much attention is the looming expiration of the unlimited guarantee for noninterest-bearing transaction deposit accounts, which was a mandate of section 343 of the Dodd-Frank Reform Bill.

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Observation Deck
September 04, 2012 Posted by
It is often written, and perhaps too quickly assumed, that the aftermath of the financial crisis has left corporate investors with limited suitable fixed income investment choices. This impression is understandable given the high level of scrutiny that corporate executives, audit committees, and board members are giving investment vehicles.
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