TIPZ News and Press, PIMCO Broad U.S. TIPS Index Exchange-Traded Fund From 11/08/21

For the five year five year forward inflation expectations inferred from market rates, there was a 27 bps jump going from 9/23 to 10/15, before retracing back to prior levels at end-October (and subsequently rising again). Kim, Walsh and Wei compare their implied expected inflation ra...

A strengthening greenback is consistent with previous Fed tapering episodes as shrinking Q.E. injections mean fewer dollars swirling around the globe. A rising dollar makes these critical imports more expensive for other countries, suppressing demand while producers ramp supply. A...

Central bank policy makers appear to have a higher tolerance for inflation than in previous cycles, even more so because of QE. It is worth adding a note of caution when looking at breakevens. There is a massive mismatch between the supply of inflation linked bonds and the demand for ...

The recent run higher in the Sharpe ratio for the Global Market Index finally reversed in October. Risk-adjusted performance has slipped, but GMI's rebound in October lifted it to a new record high. GMI is useful as a baseline to begin research on asset allocation and portfolio de...

The long-run risk premium forecast for the Global Market Index (GMI) rebounded in October, edging up to 6.1%, based on revised numbers through last month. The new estimate is calculated in terms of the projected return over the “risk-free” rate, according to a risk-based...

US real estate investment trusts (REITs) and stocks posted the strongest returns for the major asset classes in October - by wide margins. US REITs surged 7.7% last month, reversing September’s sharp decline. The recovery puts American property shares in the lead for 2021 with ...

The sellers have been in control of the bond market. Put volume continues to outshine call volume at key strike prices on the SPY options. Nasdaq 100 index did not fare as well as SPX. For further details see: Options Market Remains Doubtful Of Rally

The economic restart has laid bare a lopsided transition toward low-carbon energy that has amplified a surge in coal and natural gas prices. U.S. stocks rallied to all-time highs on better-than-expected corporate earnings. Oil prices hit multi-year highs. Investors will watch acti...

The gap between the unadjusted and adjusted spreads was 0.44 ppts as of 9/30. Analysts often look at the five year five year forward as an indicator of inflation over the five years five years from now. If one believed in the DKW adjustment (and that adjustment held constant over ...

Economists continue to debate whether the high rates of inflation observed over the last few months are transitory or permanent. Year-on-year inflation was 4.3 percent in August. One way to estimate future inflation is to look at market expectations. Bond traders must consider inflati...