by Aptus PM Team | Dec 21, 2023 | Blog, Bonds
The shift in expectations for future interest rates has become the top narrative of markets. Following last week’s FOMC meeting, markets were thrilled to see the Fed add rate cuts to their Dot plot (SEP Projections) and talk about the potential for rate cuts....
by Aptus PM Team | Dec 15, 2023 | Blog, Bonds
As expected, the Fed left its target rate unchanged at 5.25% – 5.50%, matching market consensus. The updated rate forecast, or dot plot, doesn’t have another rate hike penciled in next year. Source: Bianco/Fed as of 12.14.2023 In addition, expectations...
by Aptus PM Team | Dec 7, 2023 | Blog, Bonds
Fed expectations moved drastically last week. On Friday, November 24, markets were pricing in three cuts in 2024, with the first in June (orange). By Friday, December 1, the market was pricing in five cuts in 2024, starting around April (blue). Source: Bianco...
by Aptus PM Team | Nov 9, 2023 | Blog, Bonds
Last week brought a substantial rally in bonds following a brutal three-month span of higher rates. There are a couple of reasons we can point to for the move lower in rates: The US Treasury cut back slightly on the amount of long-term bonds it’s planning to auction,...
by Aptus PM Team | Nov 7, 2023 | Market Updates
In our recent piece Enhancing Your (Portfolio) Engine, we walked through our logic: Own more stocks, in a risk-neutral way Embrace beta to capture the ups Use volatility to mitigate the downs We think the math behind that combo is a great recipe for successful client...
