Bond Investors Binge on Netflix Junk
Q&A: Why Bond ETFs Use Sampling to Replicate an Index
As I discussed in previous blogs, index tracking methodology for equities can be constructed using either a full replication (where an ETF holds all of the securities that make up the index in their respective weights) or optimization (where an ETF holds a subset of securities that closely resemble the index.) Index tracking methodology for fixed income ETFs can be full replication as well, but it can also work a little differently by using a sampling strategy.
Repo Madness: There’s Always a Bigger Fish
Tug of War Between Stocks and Bonds Rages On
Early Look: Thursday, October 17, 2019
Stock futures are rising, tracking gains in Europe after leaders in Europe said the UK and EU reached a deal on Brexit. The British Pound jumps over 0.5% topping the 1.29 level, its highest levels since mid-May, while the euro also rises against the dollar. In Asian markets, The Nikkei Index fell -21 points to 22,451. the Shanghai Index was little changed at 2,977 and the Hang Seng Index rose 184 points to 26,848.
Using Fixed Income ETFs In Portfolio Construction
Investors Shift From Stocks To Bonds
U.S. Muni Market: Munis Hold Tight as Interest Rates Spike
China Lifts Foreign Investor Caps on Stock and Bond Markets
China has long limited foreign investor access to its capital markets. However, the country recently announced it will lift restrictions, a move that further opens its markets to the global investment community. Franklin Templeton Emerging Markets Equity Portfolio Manager Michael Lai, who is based in Hong Kong, explains what this means.
High Yield Signals
Market Perspectives – October 2019
The global investment grade credit universe (GIGC) far exceeds local submarkets in size and scope and a GIGC strategy may unlock value through diversification and currency inefficiencies.
Asia-Pacific Week Ahead (Oct 14-18): Australia’s Consumers Lose Confidence As Wage Concerns Grow
Fixed Income Trading for TWS
Stocks Fade After a Two-Day Rally as U.S. China Trade Headlines Drive Short-Term Trading
U.S. Muni Market: Demand Undeterred By U.S.-China Trade Talks
Third Quarter 2019 Review and Outlook
Hodgepodge Charts of the Day
Falling Too Far? What Sets Fallen Angels Apart
October 2019 Fixed Income Market Update
Receding trade tensions and expectations of further monetary policy easing globally were in focus in September as global data continued to weaken, while U.S. economic data quietly improved.Despite U.S. tariffs on $125 billion worth of Chinese goods as well as Chinese tariffs on $75 billion of U.S. goods taking effect on the first of the month, overall trade tensions eased in September.
U.S. Muni Market: Buyers Pinned to Uncertain Rate Path
From Fast Food to Fitness: The Rise of Whole Business Securitizations (WBS)
The emerging WBS (Whole Business Securitizations) market is gaining popularity with issuers, as it can offer them lower-cost borrowing. In turn, the market may offer opportunities for investors because the securities are collateralized by sticky cash-flow streams based on stable royalty income.
Why Stocks Can Shrug Off Higher Rates
Despite the European Central Bank’s (ECB’s) interest rate cut this month, the eurozone economy remains weak – and that’s pushing more investors into bonds’ unrewarding embrace. Bonds are a safer investment than stocks during economic slowdowns. Companies pay bondholders before shareholders, and large governments almost never default on their bonds – making them effectively risk-free investments.
Whistle Blows Before Opening Bell
The impeachment inquiry might be clouding the political outlook, but it doesn’t appear to be clouding the stock market’s bullish bias. The major indices turned in a solid performance on Wednesday, keying on the impressive new home sales data for August, and a remark from the president that a trade deal with China “could happen sooner than you think,” to maintain its hopeful vision of U.S. growth prospects.