Bonds

Latest Stories

Treasury Auctions and Inflation Data

By David O'Malley | August 7, 2017

Last week’s employment data confirmed the strength of the jobs market with 209,000 new jobs added during July versus an expected 180,000. The unemployment rate fell to a cyclical low of 4.3% while hourly earnings increased by 0.3% to a 2.5% year-over-year rate.

Tax Reform, the Fed and April Employment Data Remain in Focus for the Markets

By David O'Malley | May 1, 2017

Last week we saw the straw outline for the Trump administration’s tax reform proposal. The initial proposal is light on details and will likely be the opening bid in negotiations. It is too early to tell if bipartisan tax reform can be accomplished or if the budget reconciliation process will be used to make temporary reforms.

Geopolitical Risks Upset Markets

By David O'Malley | April 17, 2017

Geopolitical issues took center stage last week as stocks fell again and Treasury bond yields dropped to their lowest level in 2017, as tensions surrounding North Korea and with Russia over the U.S. attack in Syria had market participants worried about the impact of the Trump administration’s domestic agenda.

Are Leveraged Loans Becoming a Crowded Trade?

By Scott Ellis | March 30, 2017

Corporations have a variety of different options when it comes to raising outside capital. In the most basic form, they can issue equity or debt. When corporations elect to raise debt, they can issue it on a secured or unsecured basis and with fixed or floating rates. It is up to the management teams to choose the best option for the company at that time and to preserve its options for the future.

Stocks Pull Back on Trump Administration Policy Concerns

By David O'Malley | March 27, 2017

Last week was highlighted by the Republicans’ failure to repeal and replace the Affordable Care Act (ACA). The policy setback was not well received by stocks, as the U.S. markets suffered both its worst day and week in 2017.

Fed Takes a Dovish Tone While Raising Rates

By David O'Malley | March 20, 2017

As expected, the Federal Reserve (Fed) raised the Federal Funds rate by 25 basis points (bps) last week. The increase came with a dovish tone regarding the pace of future increases, and sent risk markets soaring and treasury yields lower following the announcement.

Is the Fed Behind the Curve with Interest Rate Increases?

By David O'Malley | March 13, 2017

Last week’s strong employment report makes it almost certain the Federal Reserve (Fed) will increase interest rates by 25 basis points (bps) at its meeting this Wednesday. The February employment report showed strong gains in job creation. Non-farm payrolls increased by 235,000 for the month, which was stronger than the expected 200,000 increase and surpassed the average increase of 180,000 for the past six months. As a result, the unemployment rate decreased by 0.1% to 4.7%.

High Yield Retailers Send Distress Signal

By Greg Zappin | March 2, 2017

The high yield market continues to be a strong relative and absolute performer, up about 2.5% year-to-date (YTD) following a greater than 18% total return in 2016. Virtually all sectors have generated positive excess returns this year, except one: retail. The J.P. Morgan U.S. High Yield Index has tightened 28 basis points (bps), while the retail sub-index has widened 100 bps YTD. Often it pays to be a contrarian and add to sectors that are out of favor and have materially underperformed. However, the situation in retail is neither cyclical nor supply driven.

Capital Market Outlook for 2017

By Mark Heppenstall | January 20, 2017

Nearly eight years into one of the most unloved bull markets ever for U.S. equities and credit, the rally now appears ready for “extra innings.” Despite increasingly full valuations and an earnings recession for U.S. companies during a recent five-quarter stretch, proposed economic policies under the Trump administration will be supportive of domestic economic growth and corporate profits.

Tax Exempt Municipals: Buckle Up for Volatility in 2017

By James Faunce | January 12, 2017

The tax exempt municipal market is poised to confront many challenges in 2017. The market will need to adjust to a new environment in terms of policy, governance, rates and volatility. The November 2016 election results have highlighted the real possibility of change and the tax exempt municipal market reacted with heightened volatility in the weeks following the election.



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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