Category Archives: Fixed Income

Cost of Retirement Income Q3 2018 Update

Real U.S. interest rates have shifted upward YTD in 2018, with a larger shift on the short end than the long̬̬—producing a flatter curve. Exhibit 1 shows the real yield curve (from 5 to 30 years) at the end of each quarter since December 2017 and also includes data as of Oct. 9, 2018 to Read more […]

Ways To Avoid Getting Pink-Slipped In Retirement

Maybe you can’t technically get fired after retiring, but running out of income in retirement is a real risk many people fear.  According to TIAA, 49% of Americans say their No. 1 goal for a retirement plan is to provide guaranteed monthly income in retirement, and 68% of Americans would first choose a retirement paycheck that Read more […]

Housing Slows

Sales of new and existing single-family homes have fallen since their recent high in November 2017 while pending home sales are flat to down so far this year.  Starts of new single-family homes are volatile but also remain below the peak seen at the end of 2017.  Recent press reports of declining activity in several Read more […]

SPIVA® Latin America Mid-Year 2018 Results

Last week, the SPIVA Latin America Mid-Year 2018 Scorecard was released. The scorecard tracks the performance of active mutual funds in Brazil, Chile, and Mexico through the end of June 2018. Exhibit 1 shows how managers fared against their respective category benchmarks for one-, three-, and five-year lookback periods. In the short- and long-term periods, Read more […]

Hurricanes, Housing and the Fed

With this morning’s S&P Corelogic Case-Shiller Home Price Indices report that house prices continue to rise even as existing home sales flatten out, analysts are debating if the hoped-for recovery from Hurricane Florence could reignite home sales or simply mean upward price pressure on housing and construction. Current damage estimates for Florence are close to Read more […]

Does Performance Persistence of Active Managers Vary Over Time?

Our most recent Persistence Scorecard shows that relatively few funds can consistently stay at the top. Out of the 557 domestic equity funds that were in the top quartile as of March 2016, only 2.33% managed to stay in the top quartile at the end of March 2018. That means out of the 2,228 domestic Read more […]

Other Strategies for Fixed Income in Brazil

Over the past 10 years, the highest overnight reference rate from the Brazilian Central Bank has been 14.25% from July 2015 through September 2016. In an attempt to hold back the depreciation of the Brazilian real and to keep inflation within the target range, the reference rate dropped 775 bps to 6.50% at the end Read more […]

Puerto Rico Bonds: A Surging Force

After wreaking havoc on the municipal bond markets, Puerto Rico bonds have recently been adding value through their recovery. Bonds rallied after the latest debt restructuring deal was struck between the commonwealth and the bond holders. Additional supporting news, as mentioned in an article from Reuters,[1] was a federal court ruling affirming the budgetary powers Read more […]

A Quick Look at Chilean Sovereign Bonds and Indices

This blog is an update of a post from Dec. 7, 2017.  The transition of the BCS indices to S&P/CLX was completed on Aug. 6, 2018, and you can now find the S&P/CLX Fixed Income Indices on the BCS website. Now take another look at the fixed income offerings of the S&P/CLX Index Series with Read more […]

Getting Smarter About Saving for College: Part 2

The stunning statistics on rising college tuition shown in Getting Smarter About Saving For College: Part 1 have led to a need for better ways to save for college.  To meet this demand, S&P Dow Jones Indices launched a new index based on research showing how tuition inflation is dependent on general inflation (linked bonds), Read more […]