Looking Under the Hood at High-Yield Bank Loans
Ashish Shah, Gershon Distenfeld and Ivan Rudolph-Shabinsky When you’re shopping for a car, you take a look under the hood to see what makes the thing run. You also check out the car’s features: does it have heated seats, a rear-view camera, a GPS?
read moreTomato, Tomahto: Why Obama, Simpson-Bowles and Others Miss the Point on Munis
When it comes to eliminating or modifying the tax-exempt status of municipal bonds, everyone seems to have an opinion these days.
read moreWho’s Afraid of the Fiscal Cliff?
Warnings about the fiscal cliff have saturated the US public debate. But consumers are still spending, even though they face huge potential tax hikes, while companies are being very cautious—even though they have relatively little to lose.
read moreEuro-Area Periphery Faces More Pain to Complete Rebalancing
Most peripheral euro-area countries have significantly improved their competitiveness recently, but more needs to be done. With currency devaluation ruled out, further downward pressure on labor costs is likely, which will probably deepen and prolong recessions and interfere with fiscal adjustment.
read moreActive Management: Don’t Drop the Pilot
For years, we’ve advised clients to hold diversified portfolios with balanced allocations to stocks, bonds and other assets. Lately, it’s been a hard sell, especially after years of underperformance by active equity managers. But the tide may be turning.
read moreProfit from Your Premium Bonds
When investors see opportunity, we believe they should actively reposition their municipal bond portfolios to take advantage. Often, this requires selling some existing holdings. Today, investors are asking us: Why do you recommend I sell my long-term bonds? They’re yielding 5%. Won’t selling them reduce my potential returns?
read moreTime to Buy Peripheral Corporate Bonds?
Amid growing confidence in euro-area authorities’ response to the regional debt crisis, yield-hungry investors have been returning to the riskier categories of corporate debt, including the peripherals: Portugal, Italy, Ireland, Greece and Spain. Is it safe to go back into the market?
read moreCracks Appear in Europe’s Credit Rally
We’ve seen some dramatic price moves in the riskier European bonds since 26 July, when European Central Bank (ECB) president Mario Draghi assured the markets that “whatever it takes” would be done to save the euro.
read moreDo TIPS Pose a Hidden Risk to Seekers of Inflation Protection?
Treasury-inflation protected securities, or TIPS, have been a popular choice for investors concerned about future inflation. And TIPS’ returns have been impressive in recent years. But the main contributor to TIPS’ performance isn’t inflation. It’s an ingredient that could become as hurtful down the road as it’s been helpful in the past.
read moreHow Would Municipals Fare Under Romney?
Last month, we wrote that changes to the tax code being discussed in Washington would affect the value of municipal bonds. While that analysis still holds true, that was before the election campaign engines really revved up. Now there’s more chatter, if not more clarity. My colleague Michael Brooks weighs in.
read moreArchives by Month:
- December 2012 (16)
- December 2011 (12)
- November 2012 (8)
- November 2011 (14)
- October 2012 (20)
- October 2011 (17)
- September 2012 (10)
- August 2012 (17)
- July 2012 (15)
- June 2012 (16)
- May 2013 (7)
- May 2012 (13)
- April 2013 (10)
- April 2012 (8)
- March 2013 (23)
- March 2012 (12)
- February 2013 (19)
- February 2012 (10)
- January 2013 (20)
- January 2012 (11)