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Income Report Card | June 5, 2017

Posted on June 5, 2017

Our Observations: The 10-year Treasury ended the week at 2.21%, within the new lower range of 2.20% and 2.30%. The drop in global rates is helping push sovereign bonds higher and keeping them competitive in terms of performance. We think this is an important trend worth watching as the current rate of sovereign bonds doesn’t […]

Income Report Card | May 30, 2017

Posted on May 30, 2017

The 10-year Treasury finished the week at 2.25%, inside what appears to be a new and lower trading range of 2.20% and 2.30%. The report card is again showing a decline in rating for U.S. corporate high yield bonds, and high yield municipal bonds are moving into their top spot. Given the low credit spreads […]

Income Report Card | May 22, 2017

Posted on May 22, 2017

Our Observations: Rates fell sharply last week with the 10-year Treasury closing at 2.23% close to the 2017 low. This has lowered the overall range between 2.40% and 2.20%. Despite the rally in Treasurys and other safe bonds, the report card doesn’t indicate any type of fundamental shift in expectations. We think it may be […]

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. […]

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 […]

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 […]