Latest Stories

Oil and High Yield Correlations Stay Strong

By Greg Zappin | March 31, 2016

Because of the high correlation with oil prices, it is increasingly difficult to have a call on the attractiveness of the high yield market without a call on oil.

Economy, Employment and Inflation

By David O'Malley | March 28, 2016

As we approach the end of a volatile first quarter, the number one question I have been receiving recently is, “Where do markets and the economy go from here?”

Sharp Reversal in the Market

By Zhiwei Ren | March 24, 2016

Since my last Chart of Week post, the market has staged an impressive comeback. Now, we are basically trading unchanged for the year. As someone who is bearish, I am surprised but not too surprised. This happened twice last year.

Fed Reduces Expectations for Rate Increases

By David O'Malley | March 21, 2016

As anticipated, the Federal Reserve (Fed) reduced expectations for future interest rate increases at its meeting last week. Risk markets rallied on the news. The Fed’s dovish change in tone puts the market in an interesting dilemma.

Corporate Debt Recovers; Is There an Opportunity with CMBS?

By Jen Ripper | March 17, 2016

The S&P 500 and Dow Jones Industrial Average indices have, over the past four weeks, retraced 90% and 88% of the move over the first six weeks of the year, while corporate spreads have not only recouped their losses but have now tightened on a year-to-date basis. Meanwhile, commercial mortgage backed securities (CMBS) cash markets have remained largely unchanged.

The Fed Walks a Fine Line

By Greg Zappin | March 16, 2016

As expected, the Federal Reserve decided to leave short-term interest rates unchanged. The Fed continues to walk a fine line, balancing its various policy objectives while maintaining an adequate level of market confidence.

ECB Cuts Rates; Expect the Fed to Hold Rates This Week

By David O'Malley | March 14, 2016

Last week, the European Central Bank (ECB) increased monetary stimulus. The continued stimulus was widely expected, but the amount exceeded expectations. The Fed meets this week, and I don’t expect them to increase interest rates until June at the earliest.

Can Shifting Electric Supply Power Investment Opportunity?

By Justin Kaplan | March 10, 2016

This week’s chart shows the shift in U.S. electricity generation since 2000. Regardless of which side of the Climate Change debate you come down on, the trends toward cleaner power generation in the U.S. are difficult to question.

U.S. Economy Outperforming Expectations

By David O'Malley | March 7, 2016

The U.S. economic data last week was stronger than expected, and the risk markets continued to perform well. Overall, I thought the data last week was strong and supports 2.5% to 3.0% Gross Domestic Product (GDP).

Is Soaring Student Debt a Factor in Declining Homeownership Rates?

By Jen Ripper | March 3, 2016

Student loan debt has tripled over the past 10 years, reaching $1.2 trillion in the fourth quarter of 2015. Total student loan debt now accounts for 10.2% of total household debt.



Disclosure Statement

The material provided here is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.

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This material is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.  This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

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