In 2018, municipals saw steady and strong demand across all maturities and sectors despite the heightened volatility in the taxable markets.  Even as yields moved higher, the supply/demand imbalance in the municipal market provided enough support for investment grade municipals to post positive returns for the year. In 2019, we have continued to see a...Read More

As mentioned in prior posts, we currently have a more favorable view on the fundamentals of the consumer and commercial real estate market than the corporate market.  To express that theme, we favorably view assets that have exposure to the consumer and to real estate.  In general, the consumer is in good financial shape due...Read More

Since the financial crisis, the BBB-rated cohort has increased significantly. We acknowledge the recent credit quality concerns in the investment grade credit market, but we do not believe that all BBBs should be painted with the same brush.Read More

As the government shutdown nears its fourth week, what can investors in commercial real estate expect from the second longest shutdown in U.S. history?Read More

As of October, and into November, the equity markets have experienced a wide spread sell-off due to several factors. In this post, we take a look at corporate fundamentals to gain insight into what is taking place in the market and why.Read More

The Treasury yield curve is close to inverting when looking at the 2-year to 10-year spread. Is this signaling a recession within 24 months? Is this the appropriate measure? Or is the Funds Rate or T-Bills to 10-year spread a better indicator of curve “flatness”? A brief look back at past curve inversions can provide...Read More

Our belief is that investment returns are significantly driven by macro factors such as inflation, economic growth, credit cycles, the level and direction of interest rates, equity multiples, and cap rates. We, at times, need to make minor adjustments to our strategies to ensure we are making the most of what the market offers.Read More

Long term interest rates have been moving higher and the Fed is guiding to more rates hikes. Is this going to lead to higher cap rates and lower valuations, or will the large amount of uninvested capital keep a lid on cap rates?Read More

Longer-term leases tend to benefit both GSA tenants and property owners. A typical GSA tenancy is more than two decades long whereas an average lease is 10 years, with 5-year extension options being typical. Structuring a longer-term lease that more closely matches GSA tenancy can result in cost savings through lower rents. Property owners, in...Read More

Recently, there has been a widening in the spread relationship between LIBOR (London Interbank Offered Rate) and OIS (Overnight Interest Swap Rate). This prompts the question: Should this be of concern? Is it a “canary in the coal mine” signaling possible problems with overall bank credit, or is there some other viable explanation?Read More