Advisories, Observation Deck

 

Observation Deck
April 01, 2010 Posted by
In response to the severe market disruption to the economy two years ago, the Federal Reserve created multiple liquidity programs aimed at stabilizing the financial system. Since then, market conditions have improved and the Fed is now tasked with implementing a strategy to normalize monetary policy.
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Observation Deck
March 01, 2010 Posted by
What a difference a stimulus makes. As we entered this global recession/credit crisis a few years ago, governments around the world came up with plans to support their banking systems and stimulate growth in their respective economies.
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Observation Deck
February 01, 2010 Posted by

The Federal Reserve decided on January 27 to keep interestrates at historically low levels despite pronouncing a continued pickup in economic activity and a deceleration of job losses. Faced with a double digit unemployment rate, tight credit conditions, and real estate price depreciation, the decision was not surprising. However, the federal funds rate has been pegged between 0 percent and 0.25 percent since December 2008, and the Fed’s ongoing comment that economic conditions “are likely to warrant exceptionally low levels of the federal funds rate for an extended period” does cause us to re-ask the following questions: “What does the Fed mean by ‘extended period,’ and how should client portfolios be positioned?” 

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Advisories
January 28, 2010 Posted by

 The aim of cash management is to make use of idle funds by choosing the appropriate investments and providing adequate liquidity, while generating income and producing higher yields. These goals align exactly with the advantages of an active portfolio strategy in today’s environment.

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Observation Deck
January 04, 2010 Posted by

As we enter 2010, fixed-income investments in the short end of the yield curve are trading at levels near historic lows. Even money fund investors are now facing yields hovering just above zero. This downward pressure has been caused by several factors.

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Advisories
December 08, 2009 Posted by

The U.S. municipal bond market has been impacted by the volatility of tight credit conditions, federal regulation and stimulus as much as, if not more than, other sectors. What makes state and muni markets unique is how much remains unknown relative to corporate markets about their ability to recover

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Observation Deck
December 01, 2009 Posted by

Uncertainty in capital markets has made some firms (and boards) opt to  forbid investing any of their precious cash in securities that have credit risk. Even fixed income issuers and money funds with well understood and transparent risk profiles, both

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Advisories
November 24, 2009 Posted by

In the wake of the harsh spotlight thrown on structured finance’s role in the 2007-2009 financial crisis, much of the securitization landscape has been altered. While many structured investments fell out of favor, particularly private label mortgage-backed securities and collateral debt obligations, credit card-backed securities avoided most of the severe credit and ratings downgrades.

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Observation Deck
November 02, 2009 Posted by

Historically, gold has been a precious commodity used for trade, jewelry, medicine and decoration. In more recent times, it has been used as a hedge against inflation. There are many investors who currently believe our country is heading into an inflationary environment, pushing up the price of gold. But we do not see any data to support the position that inflation will spiral out of control
anytime in the near future.

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Observation Deck
October 01, 2009
The month of September 2009 proved to be an important one for money market mutual funds, with rising signs of a return to normalcy for this vital investment segment.
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