With Fed rate hikes in full swing, a handful of economists calling the inflation top, and some investors already betting on rate cuts in 2023, fixed income investors may be tempted to wager on a bond rally and take on more duration in their portfolios. Duration is a...
Two weeks ago we wrote about how the liquidity of an ETF cannot simply be measured in the same way we evaluate a stock’s liquidity, even though they have similar trading characteristics. The interrelated factors driving an ETF’s liquidity are: 1) the flexible supply...
Since ETFs trade like stocks on an exchange, a common misconception is that the liquidity of an ETF can be assessed similarly to how a stock’s liquidity is evaluated. Using common stock liquidity gauges like average daily volume, shares outstanding, order book depth,...
Successful investing in high yield bonds requires great market timing, an appetite for equity-like risk, and a good deal of luck. These three characteristics are the exact opposite of what late-career and in-retirement investors want when they employ bond strategies....
The minutes from the FOMC’s meeting on May 3rd and 4th paint an optimistic tone, and project the Committee’s confidence that its shift to “neutral” conditions will be enough to prevail in its objective of bringing down inflation back towards the 2% long-term target....
Build CIO, Matt Dines, CFA, was a guest on the Gaining Perspective podcast, discussing his three takeaways from the Fed rate hike announced in March 2022. Episode summary: As expected, on March 16, the Fed signaled its intention to hike the Fed Funds rate by 25bps. My...
