OPER News and Press, ETF Series Solutions ClearShares Ultra-Short Maturity From 03/15/21

While a steepening yield curve sows the seeds of its own destruction via an ever more attractive roll and carry, especially with forward guidance on the front end, there is always a risk that markets end up questing the commitment to low policy rates. When Mr. Powell says that the Fed...

Jerome Powell has suggested that the Federal Reserve's position will remain resolutely supportive for growth. He will have a tough task convincing markets that inflation risks can be overlooked and rate hikes remain years away. The June FOMC is when the fireworks happen. For...

U.S. and global equities markets are historic speculative bubbles, fueled by runaway monetary inflation and acute monetary disorder. It's my opinion that markets in U.S. stocks, cryptocurrencies, corporate credit and derivatives have evolved into full-fledged manias. The Fed's Z.1 "fl...

One of the interesting things during the period when Treasury yields were rising was that all of the risk assets were compressing against Treasuries. There is virtually no spread in any of the credit indexes that pays the buyer for the credit risk. The spreads are just off historic lo...

10-year U.S. Treasury yield. Where is it headed? Will high-flying tech and momentum stocks fly high again? Is this a short-lived sector rotation from tech into value? For further details see: The Great Tech Rotation. Will High-Flying Tech Fly High Again?

Today the Fed released its estimates of household net worth as of the end of December 2020. Net worth has reached a new record high in nominal, real, and per capita terms. The private sector of the US economy currently has a net worth (total assets minus liabilities) of more than $130...

The stakes are high as we head to 31st March. By then, the positive leeway the Fed gave to US banks on how to treat Treasuries and reserves comes to an end, unless the Fed decides to extend it. We think they will, but not with conviction. If they don't, there are $600 billion of T...

Inflation has been gradually rising since 2Q20, but there will be a step change in March and April with the economy in a very different position to what it was 12 months before. Headline US inflation has risen from 0.2% year-on-year last May to 1.7% today, but it is barely halfway to ...

It should be no surprise that profit-maximizing speculators will seek the best risk-adjusted returns wherever and whenever they might perceive them. While the securities lending side of the financial world can be and most often is pliable, fungible, and, at times, horrifically forgivi...

US Treasury yields have dipped, but we doubt there is significant downside. The 5yr is on a cheapening trend, and there appears to be too much risk-on. We also highlight some technical drivers (US auctions, specialness and front-end debate) as we wind up for the ECB tomorrow again...