Cash and Short-Term Funds

The fourth quarter was particularly volatile in fixed income markets, with U.S. government bond yields surging on worries over the rising fiscal deficit and the potential for inflation to reaccelerate.

Investors, many of whom were worried about stock valuations before the election, have much to consider heading into 2025. There seems reason for some exuberance—but a rational exuberance, based upon a plausible foundation of corporate and economic health.

It is sometimes perceived that the Fed’s action changes all interest rates across the yield curve, but that needs to be put in perspective.

New policies could disrupt markets, but high starting yields and strong demand for income should provide ballast.

With all eyes focused on the White House, investors must decide what the incoming President’s policies will mean for markets and how to position accordingly. Ahead of the inauguration, we asked our portfolio managers what they think should be front of mind.

The calendar page has turned, and that means we have the opportunity to get 2025 off to a good start.

European bond markets are climbing a mountain of worry. Despite the risks, history suggests a positive outcome.

Continued volatility, falling yields, and other expectations for the year ahead, plus seven strategies to take advantage.

We prefer equities over fixed income, in particular U.S. equities as the outlook for the U.S. economy is solid and promising.

As the year comes to a close, we revisit some of the key market themes and moves for 2024 and the year ahead.

On Friday December 6th, the U.S. stock market pushed to the most extreme level of valuation in U.S. history

Short-term bond exchange-traded funds (ETFs) can provide yield seekers with a viable alternative to money market funds.

How a diversified liquidity strategy might help time-strapped corporate treasurers reduce vulnerabilities and improve adaptability in uncertain markets while maintaining access to cash.

Portfolio managers and market strategists from Payden & Rygel review the opportunities and risks ahead for four bond market sectors: high yield, emerging markets, global bonds and low duration securities.

Dan Suzuki analyzes current and historical trends in investors' stock, bond, and cash holdings to assess whether this "cash on the sidelines" narrative could be a valid catalyst for pushing the stock market to new highs.

Assets in money market funds reached an all-time high of $7 trillion this past month. Now that rates are moving lower, money market yields may not be as attractive to many investors and assets may gradually leave money funds.

A couple of weeks ago, we wrote about how the deficit had come back into focus for the U.S. financial markets.

We launched QuantStreet a little over three years ago, and our first accounts went live as of December 2021.

In the weeks surrounding the US election, US bond yields climbed sharply, reflecting speculation that President-elect Trump’s policies could lead to higher inflation and a widening federal deficit.

The inverse correlation between bonds and stocks has returned, broadening potential for risk-adjusted returns in multi-asset portfolios.

We seek to capitalize on today’s attractive yields while staying mindful of economic and market uncertainties.

Your fixed income strategy does not necessarily need to be adjusted based on every personnel or environmental change.

Recent insights from Natixis Investment Managers breaks down a few fixed income risks that investors may not be aware of.

Investors have been married to their money market funds for the better part of the last two years.

Here we are, another calendar quarter down with one more to go in 2024, and investors have yet to see a “hard landing” emerge.

Volatile interest rates have spurred investment capital into motion. Clients often ask where they should allocate on the yield curve.

The FOMC lowered the Fed Funds rate by 50 basis points at their September meeting. This was the first cut in over four years and the start of what is expected to be a multi-year easing cycle.

The tendency to blindly follow these rules has led investors towards prematurely de-risking and over-estimating the likelihood of recession.

Fed easing cycles and lowered target interest rates impact various economic sectors, such as mortgages, consumer credit and cash investments.

One of most dangerous habits of a speculative crowd is the tendency to use unconditional averages and unconditional probabilities regardless of how extreme market conditions have become. This is like stepping into a house with two rooms, one with the temperature at 0 degrees and one at 140 degrees, and expecting a temperature of 70 either way.

Turbulent market conditions can make anyone nervous. Here's what investors should know about dealing with them.

Cash strategies may seem safe, but inflation can bite into returns. Instead, investors can try to outperform inflation with equities.

Everything I’ve learned and experienced in 50+ years of watching the economy tells me not to expect a soft landing. But maybe that’s because I’ve never actually seen one.

As the Fed shifts its stance, investors must now weigh the broader economic implications.

After the Fed's 50-basis-point rate cut, big banks kick off earnings season amid fears that lower rates could hurt the net-interest income that propelled growth the last two years.

We are currently in the “everything market.” It doesn’t matter what you have probably invested in; it is currently increasing in value. However, it isn’t likely for the reasons you think. A recent Marketwatch interview with the always bullish Jim Paulson got his reasoning for the rally.

We expect bond yields to trend gradually lower—but it may be a bumpy ride. These seven strategies may help investors take advantage.

We believe municipal bonds currently offer a compelling balance of risk and reward for investors in higher tax brackets.

While agency mortgage-backed securities offer compelling valuations, not every mortgage is created equally.

The last two years brought challenges for investors across all walks of life, but particularly for retirees.

Fixed income strategy and opportunities have remained relatively unchanged over the past few months. However, the much-talked-about monetary policy change has commenced.

On September 18, the Federal Reserve cut the Federal funds rate, as expected, announcing at the same time that the Fed will continue to reduce its balance sheet. In my view, both of these decisions were appropriate. The Fed reduced short-term rates by 50 basis points, which was consistent with economic conditions that remain near the threshold of recession.

Since mid-2022, when the Federal Reserve was in the midst of its aggressive hiking cycle, investors piled over $1.6 trillion into money market funds, which include Treasury bills.

As GMO celebrates its 30th anniversary managing emerging debt this year, we offer our comprehensive guide to emerging debt markets. Given the tumultuous recent events – a global pandemic, defaults, repricing of interest rates, relentless strength in the U.S. dollar – we’ll focus on the Why as a starting point. Then we’ll dive into the proliferating How, covering strategies and vehicles.

With the decision on Wednesday to lower interest rates (for the first time since March of 2020) by a substantial 50 basis points (bps), rather than the 25 bps cut we typically see at the beginning of an easing cycle, the Fed is showing confidence that the disinflation trend will continue.

The yield curve measures the difference between short-term, intermediate-term, and long-term Treasury yields.

Regardless of which administration takes power after an election, a balanced portfolio has made strong gains in the years immediately after.

On the back of recent cooling in economic growth, an uptick in unemployment, and moderating inflation, the Federal Reserve (Fed) looks set to begin its rate-cutting cycle at its September meeting.

We are entering a time I think will include a deep crisis. We are going to need each other. We really do need to “find our tribe.”

We often write about the opportunity for fixed income investors to lock in relatively attractive long-term rates. And we would argue that investment consultants and financial advisors have no more important charge than to convince their clients to take advantage of this while they still can.

When we’re viewing markets, it’s not surprising sentiment shifts quickly if we don’t instantly see the anticipated results. Market pundits quickly point fingers and determine the Fed, economists, and participants are wrong. Reactions can be powerful in number and sway momentum for stocks and/or bonds.

As tax season draws nearer, advisors and investors increasingly look to their portfolio to optimize exposures for taxation purposes.

Elevated budget deficits imply growing US Treasury issuance. Receding demand from central banks could leave more price-sensitive buyers to pick up the slack. Who are the buyers of US government debt, and how is the market responding? In part two of our series, let’s examine Treasury market supply and demand.

The KraneShares Sustainable Ultra Short Duration Index ETF (KCSH) offers low risk income investing with notable yields and diversification.

The flexibility offered through individual bonds translates well for tailoring individual financial goals and needs.

Hastily, investors have turned their worry about inflation into worry about a recession. The catalyst was Friday’s unexpectedly disappointing unemployment number.