Short-term interest rates have been in the spotlight recently due to the Federal Reserve’s post-pandemic tightening cycle, where the policy rate has been raised a total of 500 basis points from March 2022 to May 2023.  Many dislocations in financial markets have occurred because of this interest rate shock.  Most recently, a banking crisis of...Read More

The bond market in 2022 has been turbulent and the negative total returns have been some of the worst experienced by fixed income investors.  As a result, a substantial amount of pessimism has been created for the asset class so far this year.  However, a reason for optimism has also been created for fixed income...Read More

The current risk/reward profile in the bond market is skewed more toward risk than reward.  Since yields are historically low at a time when durations are historically high, benchmark tethered fixed income investors and passive fixed income indexers are being compensated less for taking on more interest rate risk.  This diverging trend of yield versus...Read More