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June, July or Wait. The Anticipation Builds for the Fed

By David O'Malley | May 31, 2016

Janet Yellen kept trading desks fully staffed on Friday, before the holiday weekend. Yellen had stated in a speech that the economy continues to improve and that a rate increase might be warranted.

Strong Like Bull

By Greg Zappin | May 26, 2016

The high yield market has staged a remarkable comeback from its January and early February swoon and is now tracking for its best year since 2012. The question is: what is the durability of the rally and what could derail it?

Waiting for Janet Yellen

By David O'Malley | May 23, 2016

The Federal Reserve (Fed) minutes from the April meeting, released last week, surprised the market with the Fed’s insinuation that a June increase in interest rates may be warranted. The Fed’s more hawkish tone has made two upcoming speeches from Fed President Janet Yellen very important.

Hedge Funds, ETFs and the Risk of Conservative Investments

By Zhiwei Ren | May 19, 2016

Over the last few years, a major trend in money management has been money flowing out of actively managed funds (such as hedge funds) into passive index funds and exchange-traded funds (ETFs).

Corporate Earnings Versus Price-to-Earnings Expansion

By David O'Malley | May 16, 2016

I have been asked many times recently when equity prices will move and in which direction . The equity markets continue to trade sideways in a relatively tight range. My belief is that this is occurring for three main reasons.

Bumps in the Road for Consumer Loan ABS

By Jason Merrill | May 12, 2016

Lending Club’s troubles are a microcosm of the potential pitfalls that await the many banks, investors, and servicers that have rushed into the consumer lending space.

Employment Number Doesn’t Change the Economic Background

By David O'Malley | May 9, 2016

The April employment report was weaker than expected on the job gains side, as 160,000 new jobs were created last month versus an expectation of 200,000. Employment numbers tend to be volatile month to month, and, as a result, I prefer to look at six-month averages to tell a more accurate story of employment trends.

Insurance Technology Investing Heating Up

By Trevor M. Williams | May 5, 2016

As is the case in many other industries, technology is changing the way insurance-related business is done across the product spectrum – medical, property/casualty and life. Continued advances in software and… Read More

Sluggish U.S. Growth, and Status Quo From Central Banks

By David O'Malley | May 2, 2016

Last week the Federal Reserve (Fed) and the Bank of Japan (BOJ) confirmed the current course of monetary policy. The Fed remains data-dependent in the U.S., and the BOJ continues to signal that it has the capacity to further stimulate with monetary policy.

Disclosure Statement

This blog post is for informational use only. The views expressed are those of the author, Dave O’Malley, 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.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.


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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