Is ETF Trading Causing Wider Ripples?
Index-based trading will influence correlations, volatility, and manager opportunities.
Authored by: Sean McLaughlin
Currency Hedging
This paper explores alternatives for managing currency exposure inherent in diversified portfolios.
Distressed Corporate Credit From an After-Tax Perspective
High-yield bonds and loans are normally unattractive to taxable investors, but current conditions are more favorable than usual, and careful manager selection may tip the balance in investors’ favor.
Is the Case for Commodities Still Intact?
Implementation headwinds for commodity futures are substantial today.
Distressed Investing
The financial and economic crisis continues to create a broad and deep range of investment opportunities, many of which remain attractively valued, even after taking the recent rally into account. Given the risk that cheap assets will end up worthless, we emphasize the importance of careful manager selection across the board. Further, we caution that…
Can Municipal Bonds Get Up From the Canvas?
Muni bondholders were left in the cold in 2008 as liquidity premia soared and Treasury bonds became hot properties. Issuers are making their case in Washington for federal backing of their securities, but we believe defaults among upper-tier muni credits should remain low regardless.
Taking the Measure of Continuing Credit Market Stresses
Short-term borrowing spreads, corporate issuance, and implied volatility have improved, but remain at stressed levels.
Who Will Be First Out of the Bunker?
Attractive opportunities abound (in equities and especially in credit), but the pervasive economic gloom will get worse before it gets better. Download PDF
High-Yield Bonds – Toxic or Tasty?
The default outlook for high-yield bonds is dreadful, but with more than two-in-three issues trading at distressed levels, today’s yields already price in depressionary conditions.
Whither the Dollar
Weighing safe-haven status against fiscal concerns.