Tag Archives: interest rates

Rising Rates Arrive

Which of the figures below belong together?   It’s obvious, even if analogies aren’t your strong suit, that A is like C and B is like D.  A and C are not like B and D. The economic relevance of this simple visual exercise is this: At its March 2017 meeting, the Federal Open Market Read more […]

No News, and No Implications

This morning’s Wall Street Journal reported, rather breathlessly, that “U.S. bond yields are topping a key measure of the dividends that large U.S. companies pay—a shift that has broad implications for investors….”  The headline was triggered by the observation that the 2.50% “yield on the 10-year U.S. Treasury note…exceeded the 1.91% dividend yield on the Read more […]

Commodity February Facts, Bears to Bulls, & Interest Rate Winners

It was a flattish February for commodities with the S&P GSCI Total Return up 23 basis points for a year-to-date return of -1.2%, and the Dow Jones Commodity Index up 11 basis points bringing its year-to-date return to 78 basis points.  Overall  in the S&P GSCI TR, 3 of 5 sectors were positive and 14 of Read more […]

Advisors Managing Interest Rate Risk With Municipal Bond Indices and ETFS

Given that our crystal balls are opaque for predicting interest rates, I thought it would be interesting to continue my interview with two financial advisors about managing interest rate risk in the municipal bond asset class. Matt Papazian is founding partner and CIO at Cardan Capital Partners of Denver, Colorado, and Tom Cartee is a Read more […]

When Smart Beta Fails

How should an investor in a factor (or “smart beta”) index judge its performance?  In this respect at least, smart beta is like any other strategy: you should evaluate it against the claims that its vendors made before you bought it. This requires some subtlety.  Smart beta methodologies pick stocks based on fundamental or technical Read more […]

Rising Rates Revisited…

The prospect for and ramifications of rising interest rates have surfaced time and again in recent years. Whether and when the Fed will raise rates next is anyone’s guess. But as we’ve noted before, the correlation between higher interest rates and equity declines has grown tenuous in recent history.  Since 1991, the S&P 500 has Read more […]

S&P U.S. High Quality Preferred Stock Index: A Venn of an Index

Similar to the Venn diagram in which the overlapping section of circles is the focus, the S&P U.S. High Quality Preferred Stock Index is designed to measure preferred securities that are constituents of both the fixed-rate and investment-grade preferred stock indices. Exhibit 1: S&P U.S. Preferred Stock Indices Hierarchy The weight of cumulative preferred stocks Read more […]

Indexing 101: S&P Canada Aggregate Bond Index

The S&P Canada Aggregate Bond Index offers an investable way to participate in a broad index that is designed to measure the performance of the Canadian market.  The index is made up of the following fixed income product groups (see Exhibit 1). Exhibit 1: S&P Canada Aggregate Bond Index and its Subindices The S&P Canada Read more […]

Master Class Prep: The Transparency of Canadian Indices

In anticipation of S&P Dow Jones Indices’ ETF Masterclass for Canadian Advisors on June 23, 2016: A Bright Future for Financial Advisory, it helps to revisit some of the company’s involvement in the country.  Our firm has always been committed to Canada, with an office on King Street West, and the company has always shown Read more […]

Eurozone Corporates Gets an ECB Kickstart

The impact of the ECB announcement on March 10, 2016, continues to play out in the bond markets.  The governing council decided to establish a new program (the Corporate Sector Purchase Program, or CSPP), which will purchase investment-grade, euro-denominated bonds issued by non-bank corporations established in the eurozone.  The goal of the action is to Read more […]