Elevated budget deficits imply growing US Treasury issuance. Receding demand from central banks could leave more price-sensitive buyers to pick up the slack. Who are the buyers of US government debt, and how is the market responding? In part two of our series, let’s examine Treasury market supply and demand.

Ongoing budget deficits linger amid the post-COVID economic recovery. While markets appear unconcerned now, the accumulation of debt may exhaust investor patience. Anxiety about the sustainability of the nation’s debt could escalate with the upcoming elections in November. In part one of our series, let’s look at fiscal policy and Treasury debt.

Recent challenges from higher rates and banking turmoil are well known to investors in preferred securities, but the performance of this asset class relative to other alternatives in fixed income may not be. Here’s why we think preferreds continue to offer attractive total return potential and a tax-advantaged income stream.