SVB Asset Management

This month’s main article, The Base Case — A Closer Look at CPI, emphasizes the importance of understanding the nuances of the “base effects” of the inflation calculation by interpreting the components of the Consumer Price Index (CPI), and examining the outlook for future CPI releases and monetary policy.

This month’s main article, Peeking Past this Peak, anticipates the end of the Fed’s historic rate hiking cycle, but considers different scenarios that may materialize if economic predictions do not hold true.

The July article, Cash Management—The Paradox of Choice, recognizes that as part of the broader treasury function, investing corporate cash balances is a complex process that can benefit from dedicated expertise and resources in a dynamic investment environment.

The June article, Shifting Focus, examines the factors that are contributing to today’s market uncertainties, and conflicting indicators of the economy’s health that make the Fed’s job to set rates more difficult.

The May 2023 article, FHLBs are In Vogue, looks at a type of U.S. government agency bond — the Federal Home Loan Banks (FHLB) — as an appealing alternative to Treasuries for investors who desire a secure investment with potentially attractive returns, as well as a way to diversify and mitigate risks in light of current market volatility.

Going Deep on ABCP examines asset-backed commercial paper as a short-term investment type that potentially enhances both diversification and yield, and supports the primary objectives of safety and liquidity in our clients’ portfolios.

Read more about future monetary policy shifts from the Fed and how tactically extending duration to reduce reinvestment risk may be a strategy for locking in yield.

Read more as we discuss that although the future path of inflation and rate hikes is uncertain, there are several bright spots for fixed income investors as we look ahead in 2023.