Negative Yields – And Why They are (Still) Unlikely to Happen in the U.S.
Please see Chandler’s updated whitepaper where we revisit “Negative Yields – and Why they are (Still) Unlikely to Happen in the US in 2020.” This thought piece is an update to the 2019 whitepaper by Scott Prickett, CTP, Deputy CIO, Julie Hughes, Senior Portfolio Strategist, and Carlos Oblites, Senior Portfolio Strategist, and examines the unprecedented […]
Senate Bill No. 998
At Chandler Asset Management, we believe it is imperative that every California Local Agency review their investment policy on an annual basis. This includes an analysis of liquidity needs, risk tolerance, return objectives and ensuring the policy conforms to current best practices. This year, the annual review process takes on a heightened importance as California […]
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 […]
State of the Municipal Bond Market
Financial markets have suffered tremendous volatility in the wake of the COVID-19 pandemic, and the $3.9 trillion municipal market is no exception. After a strong 2019 and healthy January and February 2020, the municipal market suffered investor panic in March with the dramatic impact of the coronavirus and widespread lockdowns. Credit spreads widened as investors […]
Chandler’s 2020 Economic Outlook
We expect US economic growth to moderate in 2020 toward trend growth of 1.8% compared to 2.3% in 2019. Our thesis is largely underscored by the belief that the impact of monetary policy on economic growth is somewhat lagged, and the more accommodative monetary policy stance of the Federal Reserve (Fed) and other global central […]
Negative Yields – And Why They’re Unlikely to Happen in the U.S.
[et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”] Imagine a world where lenders pay you to borrow money from them; debt service on mortgages is structured so you pay back less than the amount borrowed; bank deposits cost you rather than earn you money. This is becoming the […]
Recession or Slower Growth?
A popular recession warning has been flashing red recently
The $4 Trillion Conundrum
An Analysis of the Federal Reserve’s Balance Sheet and Reduction
The Disconnect Between Interest Rates and Federal Reserve Projections
Who is Correct?
Get Ready for Rising Rates
The possibility of sustained economic growth, improvements in consumer confidence and job creation, as well as an increased willingness by the Fed to entertain a tighter monetary policy are factors signaling to investors that the bond markets may be entering a period of rising interest rates. This represents a secular paradigm shift for short-duration fixed- income investors that have seen rates fall and stay at record lows for nearly a decade. As with any turning point, this potential change will create a number of opportunities to enhance earnings. Likewise, this rise in interest rates may bring risks that short-duration investors must be prepared to navigate in order to ensure the safety, liquidity, and return of their investments.