SUSC News and Press, iShares ESG USD Corporate Bond ETF From 09/20/22

Summary The new regime of macro volatility is playing out with weaker growth, persistent inflation and volatile markets. We stick with our dialed-down risk stance. U.S. stocks slumped and yields surged on a renewed rise in core inflation. We’ve argued inflation will be pers...

Summary As we start the third week of September, with the US Fed’s much-telegraphed rate hike on Wednesday (+.75 with some 30% betting odds of a full percent!), markets are peaked. To date, Canada’s TSX -13% is just a quarter through the price correction experienced ...

Summary Mitigating the impact of inflation might mean cutting interest rate sensitivity by favoring shorter-dated fixed income but also trimming speculative growth exposure in equity portfolios. The market appears to seize on any sign of easing inflation to be bullish, while remai...

Summary The first half of the year saw GDP contract slightly and GDI expand slightly, and I interpret that as little to no growth. The money market futures I follow and the market based models I track all put the peak in rates somewhere between March and June of next year. I d...

Summary Starting today, the US Fed has pledged to run off its balance sheet by $95 billion a month. Fed fund futures predict that US policy rates will move to 3%-3.25% next week and 4.25%-4.5% by early 2023. Bond yields and interest rates should be topping out if a Fed pause c...

Summary Why an economic soft landing for the U.S. economy is becoming less likely. How softer commodity prices could become an economic bright light. Do job losses have to happen to get inflation under control? Of all the U.S. economic reports released monthly, the j...

Summary The main economic data release for the trading week is the US inflation report. The UK economy is in a precarious position and facing a recession. Chinese President Xi is expected to meet with Russian President Putin at the Shanghai Cooperation Organisation summit in U...

Summary Despite a rough first half of 2022, bonds still have an important role to play in your portfolio, offering potential income, diversification, and capital preservation. After adjusting to the Fed’s rate hikes, short-term corporate bonds may now offer potentially high...

Summary Policymakers are recognizing a new macro regime but are ignoring the trade-off between inflation and growth. A resulting recession is bad news for risk assets. Stocks fell last week after hawkish comments by Fed Chair Jerome Powell and data showing another month of jobs ga...

Summary The Inflation Reduction Act (IRA) will direct $739 billion toward various clean energy and healthcare initiatives over the next decade. The corporate alternative minimum tax requires companies of a minimum size to pay a cash tax rate of at least 15%. We expect the IRA ...