Inflation Roundup – Outlook for Rents Heating Up

TIPS breakevens have come a long way since the pandemic, generating rockstar risk-adjusted returns. The outlook continues to look bright for inflation expectations thanks to supply chain disruptions and a likely rebound in rents.

Investor Flows – The Risk-On Trade That Refuses to Die

Large cap equities were back in vogue last week, driven by primarily higher beta sectors including energy, financials, materials, and technology. Defensive sectors including consumer staples, real estate, and utilities saw modest outflows as investors’ risk-on bias continues into May.

Inflation Roundup: Rent-Related Searches are Heating Up

US 10-year TIPS breakevens have widened to fair value estimates derived from risk assets. Further upside will require rising rents and wage growth. Most importantly, rent-related searches are surging thanks to vaccines and fiscal stimulus, suggesting OER YOY will soon rebound.

U.S. Credit Update – April 5, 2021

Sector Performance Recap Industry Total Returns and Spread Performance Credit Market Conditions Scorecard Reported Data and Real-Time Indicators The Auto Industry Will be Challenged to Keep Up Issuance Recap View PDF View the PDF

Investor Flows – The ‘Risk-On’ Mantra Continues

Investors maintain strong risk-on flows led by mid and large caps of both the domestic and global variety. Nearly 88 cents of every dollar of in-flows have been directed into equities, the most since October 2018. Non-cyclicals and now thematic funds remain out of favor.