IVOL News and Press, Quadratic Interest Rate Volatility and Inflation Hedge From 07/26/21

The Dow Jones Industrial Average was down nearly 1000 points at the low Monday and closed down 725, a loss of a little over 2%. The S&P 500 did a little better but closed down 1.5%. The markets rose through the rest of the week and ended on a high note. So, you got your chance to ...

When Paul Volcker fought inflation, the way he did it was letting interest rates go higher than the inflation rate. It can take years for inflation to show up, or go away, after a Fed policy change. Having interest rates below the inflation rate is once again encouraging inflation...

Fortunately, the current year has been a bit kinder to prognosticators than the previous one. The bull market that began in 2009 didn’t end when the coronavirus panic pushed the S&P 500 down 34 percent from its previous high. The post-Covid rally, and particularly the fasci...

Reverse repurchase agreements remove funds from the overnight lending market, thereby preventing banks from using these funds to support a drawing down of reserves by marginal expansion of credit. Credit expansion may produce inflation. To the extent that accumulation of reserves prev...

Since last November’s vaccine news, financial markets have been "hanging ten" on a swell of cyclical, value and small-cap stocks, and rising Treasury yields. Crosswinds started to grow in the second quarter, however, as economic and inflation data ran hot: rising yields stalled...

We view China's monetary policy loosening as unlikely to derail a focus on quality growth in the medium term, supporting our views on Chinese assets. U.S. consumer price index (CPI) rose more than expected in June amid the restart dynamics. China’s economy grew slightly slower ...

Strategas Managing Director and Head of Fixed Income Research Tom Tzitzouris breaks down the recent action in the bond market. He hits on the hotter-than-expected inflation data, the Fed’s actions, and his outlook for interest rates. He also discusses another headwind appro...

Consumer prices increased 5.4% in June from a year earlier, as measured by CPI, which was the biggest monthly gain since August 2008. PPI jumped 7.3% on a year-over-year basis, which was a new record. One would normally expect the yields on bonds to rise in tandem, if not exceed these...

While the economic growth rate is slowing, that is not a contraction or a recession. If that was the case, you’d see junk bonds selling off too, and that just isn’t the case - at least not yet. Our investment process puts a lot of emphasis on rates of change, whether mac...

designer491/iStock via Getty Images With investors warry about rising inflation levels, it’s no surprise that Treasury inflation protection exchange traded funds are at 52-week highs. The annual inflation rate in the United States once again picked up steam in June of 2021 to 5.4%, up ...