Rising Rates: Time to Position, Not Panic

It finally happened. After endless discussion about the potential for rates to rise, they finally did—in a big way. During May and June, the 10-year US Treasury yield soared by nearly one percent, and markets reeled. Instead of panicking, investors should make sure their portfolios are positioned effectively.

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For Abenomics, the Hard Part Is Still to Come

Prime Minister Shinzo Abe’s “Abenomics” program, designed to revive Japan’s economy, was a big success in its first five months, easily surpassing low expectations. But it’s drifted off course since it began, and the going is sure to get tougher from here. Still, it’s too early to write off this policy experiment.

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Keeping Your Balance During Shaky Markets

By Paul DeNoon (pictured) and Gershon Distenfeld While capital markets have had their ups and downs, it’s been at least 15 years since we’ve seen such a broad swathe of the global markets take a hit at the same time—risky and “risk-free” assets alike.

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Municipals: A Glimpse of What’s to Come?

Federal Reserve Chairman Bernanke reiterated today that a healthier economy would prompt the Fed to end its unprecedented bond-buying program, which has kept yields artificially low. Speculation on this question over the last several weeks has caused a sharp bond sell-off and rising yields. But we don’t see this as the start of a rout [...]

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Detroit Municipal Bonds:
Who’ll Share the Pain?

Joseph Rosenblum (pictured) and Neene Jenkins It could be several weeks or a few months. But before long, the city of Detroit is likely to default on some of its outstanding bonds and possibly file for Chapter 9 bankruptcy protection. It would be a historic bankruptcy and is sure to create uncertainty in the municipal [...]

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Breaking Down Borders in High Yield

After a multiyear rally, many high-yield investors are looking for new strategies to better balance risk and return. We don’t think a deep dive into riskier credits is the answer. Instead, investors should consider moving beyond traditional boundaries—both geographic and in credit rating.

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Euro High Yield: Defaults Are Not the Biggest Concern

High-yield default rates have been unusually low over the past couple of years and now look as though they are on the cusp of a reversal. But default rates in themselves could be less damaging to high-yield bond returns than rising government bond yields.

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Bonds: Born to Be Mild

A 30-year bull market for bonds has come to an end, but this does not make a bear market inevitable, in our view.

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Emerging-Market Debt: Pure High-Yield Strategies Come of Age

We believe investors should be thinking about emerging-market debt in terms of credit quality buckets (investment grade or high yield) rather than sectors (sovereign or corporate). For some types of investor, pure high-yield strategies can offer significant advantages.

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Federal Judge Green-Lights Stockton Bankruptcy

Stockton, California, made headlines last June when it filed for a Chapter 9 bankruptcy. Now, a federal judge has not only given his okay to proceed; he’s also thrown retiree pension benefits into the debate. The big question is whether these benefits can be cut. The outcome could be a groundbreaking decision that would encourage other [...]

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