The Fixed Income Channel

This Natural Gas Opportunity Is Years in the Making

This week I was in beautiful Argentina with a diverse team of investors and mining executives. Together we toured various natural gas and crude oil mining projects in Tierra del Fuego, Mendoza and Santa Cruz, where we had the opportunity to speak with Governor Alicia Kirchner, elder sister to former Argentinian president Néstor Kirchner.

Trending

The term “trend” now has a broader use. Trending is a term used in reference to the buildup of posts on social media. And we find ourselves in a day and age when the leader of the free world is posting using stream of consciousness—annoyingly against a department store that no longer supports his daughter’s line of clothing or worse, tweeting against judges who disagree with his policies. This is a trend we shouldn’t miss.

Real Asset Alternative CEFs

Real asset alternative investments in a CEF format may appeal to investors seeking inflation protection, says Larry Antonatos of Brookfield Asset Management.

Money, Money Everywhere, Not an Asset to Buy

During the next two decades, an estimated 76 million baby boomers – the bulge of the Western population born between 1946 and 1964 – will begin the process of going from growing and accumulating earnings to retiring and distributing their wealth.

Credit Risk? Interest-Rate Risk? Both Are Critical

Investors often ask us which of the two primary bond market risks—interest rate or credit—they should focus on in 2017. Our answer? Both of them—and the interaction between the two.

Life After Beta: Are You Asking the Right Questions About Alternatives?

Investors have had mixed experiences with alternative investments lately, as the market landscape has made it hard for managers’ skills to shine. It’s time to ask some pointed questions to get the right fit.

Long-End of US Yield Curve Is Flattening, Short-End SteepeningThe spread between 30-year US treasuri

The spread between 30-year US treasuries and 10-year US treasuries has fallen to just 60 bps which is the smallest spread in about 2 years.

Lost & Found: Fixed Income Purchase Premiums on Maturing Bonds

Why worry about paying a premium for bonds? While cash flows may differ, income from premium and par bonds is equivalent, all other variables being equal. Purchase premiums aren’t lost when the bonds mature.

We Are Growing Less Positive (But Not Negative) Toward Equities

Equity markets have increased since the U.S. elections for two principal reasons: optimism over a pro-growth legislative agenda from Donald Trump and improving U.S. and global economic and earnings growth.

A Most Wonderful Year For Small-Caps

2016 was a terrific year for small-cap stocks—and an even better year for small-cap value and cyclical sectors.

Weighing the Week Ahead: Will Trump Policies Extend the Business Cycle?

We have another holiday-shortened week with little fresh data. While there are some Fed speakers on tap, it is not enough to feed the avaricious punditry.

When Speculators Prosper Through Ignorance

As Benjamin Graham observed decades ago, "Speculators often prosper through ignorance; it is a cliche that in a roaring bull market, knowledge is superfluous and experience is a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss."

On My Radar: Blood in the Streets, Indeed

We sipped the QE juice and loved the taste. Now we’re full… the game has changed. The Fed had assets worth $858 billion on its books in the week ended August 1, 2007 just before the start of the financial crisis, and the same stood at $2.24 trillion at the end of 2009.

Gold Gets a Shot in the Arm from Inflation and China

Inflation just got another jolt, rising as much as 2.5 percent year-over-year in January, the highest such rate since March 2012. Led by higher gasoline, rent and health care costs, consumer prices have now advanced for the sixth straight month. In addition, January is the second straight month for rates to be above the Federal Reserve’s target of 2 percent.

Weekly Market Summary

US equities continue to make new all-time highs each week, supported by strong equity fund inflows and macro data that has exceeded expectations. Surprisingly, equities outside the US are actually outperforming the S&P. The current trend is very extended and there are four notable headwinds that may impact equities in the weeks ahead. There is, conversely, a favorable set up in the bond market.