Although the US economic recovery has picked up and we expect yields to rise in the second half of 2020, structural forces may help limit the size of the move. The pandemic-driven demand shock, the Federal Reserve, and disinflationary pressures may l

What is a Collateralized Loan Obligation (CLO)?

Collateralized loan obligations (CLO) are portfolios of leveraged loans, a type of below-investment grade loan usually taken out by more heavily indebted companies. Each CLO is divided in

“Why did God create economists? To make weathermen look good!”

The US economic recovery continues, with the majority of economic data coming in much better than expected. From the more than 10 million jobs beat in the May emp

The US economy has made impressive progress in recent weeks. As the economy re-opens, the way we assess the recovery has changed. In March and April, we were looking for evidence that growth in COVID-19 cases was decelerating—which thankfully i

Among developed markets, we maintain our preference for US equities over international, but the bout of strong performance for the MSCI EAFE Index relative to the S&P 500 Index in late May through early June and the latest weakness in the US doll

Stocks have shaken off the 5.9% S&P 500 Index drop last Thursday by gaining three days in a row before yesterday’s modest weakness. While researching and reading this week, three charts stood out that tell us quite a good deal about how inv

The market focuses on today and trends in the road ahead, and here in the middle of June, it’s seeing some green shoots in the road to recovery. These green shoots are timely economic data that continues to provide insight into the US economic

Stocks staged perhaps the strongest rally in history—a more than 44% gain for the S&P 500 Index from March 23 through June 8—before pulling back about 6% late last week. With so much economic healing ahead of us and a still-uncertain

“Stocks take an escalator up, but an elevator down.” — Old investment axiom

The saying above sure happened yesterday. In the end, the S&P 500 Index fell 5.9% for the worst day since March 16 and the first three-day

US equities continued to gain ground in May, with the S&P 500 Index advancing an additional 4.5%. However, Treasury yields have been remarkably stable since the equity markets bottomed on March 23, with the 10-year Treasury yield trading in just