HTAB News and Press, Hartford Schroders Tax-Aware Bond From 03/13/23

2023-03-13 15:35:00 ET Summary One of the themes I’ve been discussing lately is how inflation risk has been evolving into credit risk. The banking bust we’re seeing now was sown during COVID. The COVID boom was the inevitable blow off top of the prior 10-year bull ma...

Summary The prospect of higher U.S. interest rates continues to loom large over the markets. The US is in the late stage of the economic cycle. What to expect in a late-stage economy. The prospect of higher U.S. interest rates continues to loom large over the marke...

Summary Market divergence between bulls and bears in 2023. Are markets listening to what central banks are saying about interest rates? Why perception may be worse than reality when it comes to market sentiment. There appear to be widely differing views on what 202...

Summary The Fed’s interest rate and liquidity tools are blunt instruments, particularly in a service-oriented economy. If inflation indeed moderates from here, it is likely that interest rate volatility moderates alongside it. Monetary policy has created the asset-on/asset-of...

Summary 1 or more years of additional interest-rate duration in ‘23 vs. ‘22, to be grown over time: As central banks slow, or pause, their tightening cycles, in sympathy with slowing economic growth and inflation. 6% to 6.5% of portfolio carry potential (including anticipa...

Summary As the stock market went up the first two days of the week, more shares transacted at rising prices. A leading retail-oriented broker indicated their clients have been buying mostly corporate/municipal bonds and commodities, while selling declining US government bonds. The t...

Summary Why are bonds taking a big hit? As the rate hike cycle moves closer to the end, could a generational opportunity in fixed income be emerging? How do long term capital market expectations look? Are GICs recommended? Rising interest rates have inflicted m...

Summary While it’s been a tough year, the Federal Reserve has done investors an enormous favor in terms of the attractiveness of a wide swath of fixed-income asset classes that today look a lot more attractive than a year ago. Jay Powell and the FOMC did raise the Fed funds rate ...

Summary The average spread between the 10-year Treasury and the 30-year mortgage rate has averaged 1.7% since 1990 and now stands at 2.9%. Small and mid-cap stocks continue to look better technically than US large cap. The Russell 2000, S&P 600 and S&P 400 (midcap) index E...

Summary Almost half of the option contracts being traded on the S&P 500, to the tune of $300 billion of notional each day, have one-day expiries or less. Across all listed ETFs and indices, an astounding $1 trillion of notional value in put options (bets that an index or ETF w...