Muni to Treasury Ratio at Historic Levels

Muni to Treasury Ratio at Historic Levels

As advisors often see, high-income investors love municipal bonds. And for the most part we’ve shared that love. Tax-favored income and low correlation to equities, what’s not to love? But it seems investors are piling in with little regard for price, even with...
Muni to Treasury Ratio at Historic Levels

Convertible Bonds: Feed the Ducks

Convertible Bonds experienced an incredible 2020 and start to 2021. The Bloomberg Convertible Index outperformed both the S&P 500 and Nasdaq indices in 2020.  We can’t mention CB’s without highlighting Tesla which attributed approximately half of the 2020...
Muni to Treasury Ratio at Historic Levels

High Yield : Juice Worth the Squeeze?

Investors that took advantage of the blowout in credit spreads back in March have seen incredible gains from the bottom. The credit markets experienced a liquidity freeze like never before, prior to the Fed’s announcement of off-balance sheet facilities. Established...
Muni to Treasury Ratio at Historic Levels

Can the Fed Keep Mortgages Propped??

Avoiding Agency Mortgage Allocations in our Models We’ve been saying since the middle of last year that the percentage of total returns in fixed income coming from price return wouldn’t likely be the same into the future. Interest rates have nosedived lower following...