IVOL News and Press, Quadratic Interest Rate Volatility and Inflation Hedge From 04/11/23

2023-04-11 12:43:15 ET Summary TIPS have struggled over the past year despite a high level of inflation. The chief cause of underperformance - a rise in real yields - is now a tailwind for the bonds and why we find them attractive. With current and trailing-twelve month yields...

2023-04-10 11:30:00 ET Summary We upped our overweight of inflation-linked bonds in March to quickly take advantage of the market pricing lower inflation - our new playbook in action. Bond yields rose after data showed a still-tight U.S. labor market. We think that keeps inflation...

2023-04-07 11:12:40 ET Summary The IVOL ETF holds a position in the SCHP ETF plus a portfolio of OTC yield curve steepener options. The IVOL ETF benefits when TIPS bonds increase in value or if the yield curve steepens. As the drumbeats to a U.S. recession increase, traders ar...

2023-04-03 11:20:00 ET Summary We see the U.S. policy push for leadership in clean tech and Europe’s fast-developing response creating near-term and strategic investment opportunities. Risk assets rallied amid stabilizing sentiment toward banks. Yet the disconnect between s...

Summary Canadian inflation is decelerating, but jobs and spending remain strong. The full impact of interest rates hikes may not be felt yet. TD Asset Management's Alexandra Gorewicz says there may be a case to hold rates for now. Strong economic data has some inve...

Summary The IVOL ETF holds a position in the SCHP ETF plus a portfolio of yield curve steepener options. The IVOL ETF benefits when TIPS bonds increase in value or if the yield curve steepens. As the Fed continues to raise short-term interest rates and invert the yield curve, IVOL w...

Summary The Quadratic Deflation ETF is a fixed-income fund that seeks to benefit from lower growth, deflation, and lower or negative long-term interest rates. Most of the vehicle is invested in the Vanguard Long-Term Treasury ETF, while a small portion is composed of bought options on t...

Summary While price inflation appears to be easing some, the data indicates it is far from whipped. At this point, you can spin the price inflation data either way. It is reasonable to think that price inflation will continue to cool. The bigger problem is that this “high...

Summary Last week’s Federal Reserve meeting provided reinforcement for those anticipating slower rate hikes and a more stable bond market next year. Chair Jerome Powell seems to lean toward downshifting to 25-basis-point increases. Investors could see slower rate hikes from h...

Summary Demand destruction is weighing on prices globally as financial conditions tighten. The good news is that headline CPI is set to follow crude lower in 2023. This Wednesday, any dovish nods out of the FOMC could spark a year-end relief rally in risk markets. Demand d...