The Capital Building

Tax Reform and Long Corporate Bond Supply

Plan sponsors will likely have to rethink LDI implementation in the new tax regime. 

Graph in Magnifying Glass

Concentration Risk in Long Duration Portfolios

Our analysis reveals that manager diversification does not necessarily insulate corporate plan sponsors from issuer concentration risk.

Stock Market in Newspaper

Equity Markets Correct

It may take some time for the markets to find their bottom.

Equity Markets Correct

February 12, 2018

It may take some time for the markets to find their bottom. However, our recession indicators are not rising, our cycle indicators are not flashing warnings and our realtime activity indicators say this is a technical selling correction that will exhaust itself.

Read More

Senior Loan 2018 Outlook

January 25, 2018

As we enter 2018, the macro environment continues to remain supportive for credit markets generally. However, the prolonged stretch of low volatility has driven yield-hungry investors to overlook potential risks. Against this backdrop, we believe the most significant risk in the loan market resides in CCC and below-rated loans, as any unexpected uptick in volatility skews risk significantly to the downside.

Read More

Capital Market Assumptions for 2018

December 21, 2017

When financial market historians look back at 2017, the year probably will be highlighted for its tightly compressed levels of volatility. Another notable aspect of the year is that, heading into late December, there has not been a single month of negative returns for the S&P 500 index.

Read More

Unconstrained Fixed Income: Perspectives on Duration

November 8, 2017

An unconstrained opportunity set should not equate to unconstrained risk. In this analysis, we explain why clearly defined risk tolerances, not specific return targets, are most important when approaching today's challenging fixed income markets.

Read More

Senior Loans: Committed to a Pure Play, Higher Quality Style

October 19, 2017

The lowest-rated segments of the loan market have driven the recent performance of the index. However, investors seeking to maximize short-term returns by reaching down for yield should proceed with caution - our analysis reveals that there is limited upside to investing in the higher-risk components of the senior loan market.

Read More