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Volatility | June 15, 2017

Posted on June 15, 2017

Our Observations: Current volatility is approaching the long-term volatility numbers, based on a combination of slightly higher near-term risks and a long period of overall low levels of risk. This is notable as it could indicate a potential for a correction. However, the current level of risk is still far from historical averages and this […]

Volatility | May 18, 2017

Posted on May 18, 2017

Our Observations: Changes in the risk environment followed no particular pattern. Certain markets like Korea and Hong Kong increased in volatility while most European markets and the U.S. experienced a slight decrease in volatility. In general, risk in stock markets appears to be muted while risk in bonds, currencies, and commodities approaches the long-term volatility […]

Income Report Card | May 15, 2017

Posted on May 15, 2017

Our Observations: The 10-year Treasury ended the week at 2.33%, inside the 30 basis points range that has held for much of the year. It appears that the appetite for risky assets, i.e. stocks and credit, has returned after the minor sell-off in April. We also remain in a historically low level of market volatility. […]

Volatility | May 11, 2017

Posted on May 11, 2017

Our Observations: Volatility increased in nearly every asset class as near-term volatility approached long-term volatility. Rising volatility tends to indicate a riskier environment for stocks and commodities, so we think this data adds to the consideration of a possible correction. We think it is prudent to keep an eye on volatility as extreme numbers could […]

Income Report Card | May 8, 2017

Posted on May 8, 2017

Our Observations: The 10-year Treasury ended the week at 2.36%, inside the range that has held for much of 2017 after a volatile few weeks for bonds. The report card is showing some rank changes in many of the credit sectors. We think the volatility in rates is indicative of increasing risks of all types of […]

Volatility | May 4, 2017

Posted on May 4, 2017

Our Observations: Volatility continues to be somewhat muted across all asset classes. The sell-off in stocks over the past few weeks failed to generate high-levels of volatility, which is often a good indicator of extreme investor sentiment. We believe, this could mean that a deeper correction is still pending or that the rebound will be […]

Income Report Card | April 24, 2017

Posted on April 24, 2017

Our Observations: The 10-year Treasury ended the week at 2.24%, slightly higher than this year’s low of 2.18%. At this point, we are unsure if a new pattern has taken shape or whether this is a reprieve from the range formed earlier this year. However, we think the lower rates and continued outperformance of lower […]

Income Report Card | April 17, 2017

Posted on April 17, 2017

Our Observations: The 10-year Treasury yield fell from 2.38% to 2.24% over the past week, breaking out of the trading range it has held all year. We believe this likely signals the beginning of a correction that should favor less risky assets such as Treasurys and cash over riskier credit and stocks. However, we’ve noticed […]