Recent Posts

Markets Face Tariffs

Trade policy uncertainty continued to shape financial markets this week as replacement tariffs under Section 122 of the Trade Act

Economic Data Signals Resilience

There was a plethora of economic data releases this week with most indicating the resilient economic backdrop remains in place.

January 2026 Bond Market Review

December economic data signaled moderating inflation alongside a continued rebalancing in labor market conditions, with price pressures still running modestly

Finding Safety in a Volatile Corporate Market

Over the past 20 years, there has been a significant shift in the ratings composition of the investment grade corporate bond universe. Using the ICE Bank of America Merrill Lynch US Corporate Index (C0A0) as a representation of this universe, the number of securities has grown by about 150% from 3,378 members in December of 1999 to 8,583 members in June 2020. As a greater number of securities and mix of issuers has increased, “BBB” rated bonds have grown substantially as a percentage of the index. In addition to the heavier presence of “BBB” ratings, the dispersion of “AAA”/“AA”/“A” rated bonds have made a gradual shift towards the lower rated portion. With the shrinking portion of the highest rated corporate bonds, the investment grade market has posed challenges in finding a competitive return while remaining up in quality.

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