Understanding Negative Interest Rates

We’ve been hearing a lot of talk about negative interest rates this past week. In times of extreme stress, financial markets behave in extraordinary ways. The more volatile the stock market, for example, the more difficult it is to find rational buyers and sellers. Today we're seeing these same distortions…

Expect the unexpected

Calendar 2019 was an interesting and unexpected year in the fixed income market. After four interest rate increases in 2018, it was widely expected that the Federal Reserve would continue to tighten the money supply in order to regain a “normal” interest rate yield curve. Entering the year with the…

Is the Fed going to cut rates?

With 2019 more than halfway over, there are a few things that investors should continue to keep an eye on until year-end that could lead to market movements. One of the biggest drivers continues to be Fed decisions – while they did not do anything in June, they did give…

The Fed’s in waiting mode

With a third of the year over already, much of the market volatility encountered in late 2018 is fading in the rear-view mirror. While the China trade dispute has reemerged recently as a top risk for investors, markets are still generally positive for 2019. Brexit and uncertainty about future Fed…

The interest rate pendulum

When interest rates get whipsawed the way they have in the last couple of weeks, we believe some explanation is necessary. First and foremost, we don’t believe it is one particular issue but instead, a lot of balls in the air at the same time that are creating uncertainty. China,…