Sep 20, 2019 | Insights
The rate on overnight repo surged on Monday, 9/16 and remained elevated through the week causing the federal funds rate to rise above the higher end of the Fed’s target range. This spooked market participants as short-term rates were a harbinger for worsening...
Aug 15, 2019 | Insights
Weakening sentiment as evidenced by global central banks’ dovish and the recent inversion in the 2s10s curve is likely to force the Fed’s hand to cut interest rates by another 25 bps in September.
Jun 26, 2019 | Insights
Due largely to recent LIBOR manipulation scandals, regulators in the US are set to phase LIBOR out by the end of 2021 and replace it with the Secured Overnight Financing Rate (SOFR), pressuring market participants to quickly understand and adopt SOFR (refer to our...
Jun 13, 2019 | Insights
Unlike senior unsecured corporate bonds, ABS transactions are structured so senior tranches are able to maintain AAA ratings even if there is material deterioration in fundamentals.
May 15, 2019 | Insights
The Fed’s positioning still leaves room for a pivot back to hawkish, but the window may have already closed for additional hikes as traders are now predicting a greater than 75% chance for a rate cut by the end of the year.
Feb 14, 2019 | Insights
Sentiment for risks assets has vastly improved as fear of a recession induced by monetary policy missteps eased considerably with the Fed explicitly stating during its January meeting that it will remain patient not only in interest rate hikes but also in balance...
