U.S. Credit Update – February 8, 2021

Industrials Starting to Lose Their Edge Auto Demand Takes a Step Back The Rent Narrative May Get Messy Bank Loans, Munis and TIPS on the March Total Return & Issuance Recap View PDF

Weekly Inflation Roundup: Right-Side Tail is Beginning to Show Up

The blue wave has ignited a jump in nominal Treasury yields, while real yields refuse to follow along. The Federal Reserve’s new AIT framework suggests dovish policy will persist in the face of rising inflation (if it really happens). TIPS breakevens have already produced record high Sharpe ratios, but have room to run according to risk assets.

U.S. Credit Update – January 4, 2021

Summary Travel, Energy and Materials Dominated Q4 Excess Returns Credit, Equity Divergence in the Energy Sector The Automotive Industry Looks for a Fast Start to 2021 Regional Banks in Focus Total Return & Issuance Recap View PDF

TIPS are the Surprising Star of 2020

U.S. 10-year TIPS look poised to become the shining star of 2020 with a Sharpe ratio of 1.26. In fact, TIPS have not taken the top spot according to Sharpe ratios since 2002.