Quantitative easing

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2017 Economic and Market Review

By Mark Heppenstall | January 5, 2018

Economic Growth & Inflation The ‘Goldilocks’ U.S. economic recovery has now moved beyond its 100th month with few signs of normal late-cycle imbalances or excesses to derail the current expansion…. Read More

Bond Bull Market Keeps on Running

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?