Observation Deck

 

Observation Deck
October 01, 2010 Posted by
The Federal Reserve Board’s Federal Open Market Committee continues to convey the sentiment that the economy is still fragile and the future remains uncertain. A clear message on September 21 was that the Fed would step in if necessary to support the recovery and assure that inflation returns to a level that is in accordance with the Fed’s mandate. Ideally, the Fed would like inflation to be between 1.5 and 2 percent; currently it is at 1.1 percent.
Read More
0 Comments | Join the Discussion

Observation Deck
September 01, 2010 Posted by
There has been much discussion about the recent rally in the bond market, primarily in U.S. Treasuries, with some observers labeling it as the next "Bubble."
Read More
0 Comments | Join the Discussion

Observation Deck
August 02, 2010 Posted by
The need for greater efficiencies around managing cash and liquidity, together with the need to improve visibility and maintain control, are key concerns for clients with growing overseas operations. These needs, along with the desire to enhance returns, are what make an effective global cash management platform essential.
Read More
0 Comments | Join the Discussion

Observation Deck
July 01, 2010 Posted by
The Federal Open Market Committee has once again reiterated the proverbial “extended” remark, regarding leaving the target interest rate unchanged in the range of zero to 0.25 percent. It is becoming more likely that the first rate increase is about a year away. Here's why.
Read More
0 Comments | Join the Discussion

Observation Deck
June 01, 2010 Posted by
The global economic recovery remains in question, as evidenced by the instability in the euro zone and 10 percent unemployment in the United States. Although the U.S. is seeing robust hiring in the manufacturing sector, the impact is diminished because the service sector constitutes 70 percent of U.S. gross domestic product. Complicating the global recovery scenario will be Europe’s prolonged period of relatively weak economic performance due to austerity measures imposed as result of the nearly $1 trillion rescue package.
Read More
0 Comments | Join the Discussion

Observation Deck
May 03, 2010 Posted by
What’s a securities broker to do? The boards and CFOs that have employed them to manage corporate cash have largely and perhaps permanently lost all appetite for the products that were once so lucrative for brokers to sell.
Read More
0 Comments | Join the Discussion

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.
Read More
2 Comments | Join the Discussion

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.
Read More
0 Comments | Join the Discussion

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?” 

Read More
0 Comments | Join the Discussion

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.

Read More
0 Comments | Join the Discussion