by John Luke Tyner | Aug 2, 2023 | Blog, Bonds
We’ve all seen the news that Fitch downgraded the US Government’s credit rating from AAA to AA+. Fitch’s move follows a similar cut by S&P about 12 years ago. Source: Bloomberg as of 08.01.2023 Moody’s continues to rate the US AAA (wonder where the...
by John Luke Tyner | Aug 1, 2023 | Blog, Bonds
Rise in Interest Income is Helping Buoy the Consumer The increase in interest rates over the last 15-18 months has made it is more expensive to borrow money but on the flip side, they have higher yielding options to put cash to work. Source: WSJ as of...
by John Luke Tyner | Jul 26, 2023 | Blog, Bonds
The Fed raised rates for the 11th time in 16 months, bumping rates +25bp to 5.25%-5.5% at today’s FOMC meeting. This matched the market consensus and puts short-term rates at a 22-year high (last seen January 2001). The Fed kept the statement the same in regard to...
by John Luke Tyner | Jul 19, 2023 | Blog, Bonds
With many declaring the Fed’s work done, we thought it made sense to discuss the challenges that still remain in this hiking cycle. The headline inflation numbers have been hammered down, but underlying conditions still give them the backdrop to try putting the...
by John Luke Tyner | Jul 5, 2023 | Blog, Bonds
QT Slowly Eating Away Liquidity Even with the spike in the Fed’s Balance sheet following the SIVB (Silicon Valley Bank) collapse, QT is still quietly going on in the background. The Fed has stayed course in their communication of the importance of shrinking...
by John Luke Tyner | Jun 21, 2023 | Blog, Bonds
Source: Strategas as of 06.20.2023 Many of the underlying sources of inflation have cooled over the past year. Supply chains have improved, interest rate sensitive sectors are seeing slower growth, but is it enough to get to the fed’s 2% target? The...
