Quantitative easing

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America’s Bond Market is Crushing It

By Penn Mutual Asset Management | November 3, 2017

Penn Mutual Asset Management CIO Mark Heppenstall outlines the potential risks to the long-running bond bull market in his latest contribution for The Hill. While the bond bull market remains… Read More

Fundamentals Rule the Day

By Greg Zappin | October 12, 2017

The daily record highs in the equity markets and the relentless grind tighter in the credit markets elicit both feelings of marvel and trepidation. As you can see in the chart above, revenue and EBITDA are growing at strong levels across the companies in the S&P 500. The uneasy feeling in the fixed income market comes from the disparity between valuations at or near their post crisis tights versus the constant barrage of negative news outside of Wall Street – North Korean war talk, devastating hurricanes and fires, mass shooting in Las Vegas, and dysfunction in Washington. For most high-yield investors, waiting for the big pullback by sitting in cash is not an option, as the active manager gets compensated to take risk and outperform an index. It’s easy to get distracted in this type of market. When I sift through all the noise, I have found the best way to construct a credit portfolio is to rely on business fundamentals as a guiding light.

Mortgage Opportunities After Quantitative Easing?

By Jen Ripper | September 28, 2017

Nearly ten years ago, the Federal Reserve (Fed) embarked upon what became known as quantitative easing as a way to combat the financial crisis of 2008. With the Fed Funds rate near zero percent, the Fed announced it would purchase U.S. Treasury notes and mortgage-backed securities. After three rounds of quantitative easing, the Fed ended its purchases in late 2014. During that time, the Fed has purchased nearly $1.78 trillion of agency mortgage-backed securities (MBS).

Disappointing Employment Report Clouds Economic Picture

By David O'Malley | April 10, 2017

Last week’s March employment data release disappointed market expectations as the economy added 98,000 jobs–about 100,000 less than estimates and the average gains experienced over the last six months. Average hourly earnings remained stable at a 2.7% year-over-year gain. On the positive side, the unemployment rate fell by 0.2% to 4.5% in March, which is the lowest rate since 2007.

Are Mergers and Acquisitions Driving Corporate Issuance?

By James Faunce | April 28, 2016

Corporate mergers and acquisitions (M&A) continue to be a significant driver of the investment grade corporate bond market new issue calendar. As shown in today’s chart, M&A activity made up almost 35% of non-financial issuance in 2015, making it an all-time record total supply year. 2016 is on a similar pace.

Penn Mutual Asset Management’s Economic and Market Review for 2015

By Mark Heppenstall | January 20, 2016

The U.S. economy has been one the few bright spots across the globe, as most other developed and emerging market economies performed below expectations.

Equity Market Still Likes Monetary Stimulus

By David O'Malley | October 26, 2015

Despite weak economic data and mediocre earnings, stocks have rallied sharply on expected additional monetary stimulus from the European Central Bank (ECB).

Has Quantitative Easing Led to Increased Risk for the Current Market?

By Zhiwei Ren | September 24, 2015

We have all seen the benefit of Quantitative Easing (QE) when it was coming in: It reduces market volatility and makes holding financial assets much more rewarding. What will happen to the market when QE starts to come out?

The Potential Impact of Greece, Puerto Rico and China on Investments

By Mark Heppenstall | July 9, 2015

What effect might the debt crises in Greece and Puerto Rico, and the downturn in the Chinese stock market, have on investments globally?

The Case for Adding Inflation Protection to a 60/40 Portfolio

By Zhiwei Ren | June 18, 2015

Currently, the Fed’s major concern is not inflation but disinflation. As a result, assets that tend to outperform during inflationary environments are all trading at historically attractive levels.



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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