Tax Efficient Fixed Income

Market Review and Outlook: 1st Quarter 2014

April 16, 2014

The first quarter of 2014 was good for many fixed-income investors. Bonds across the yield curve delivered positive returns, with longer dated bonds outperforming shorter ones. Economic data, such as job creation and GDP growth, came in below expectations; interest rates declined and the yield curve flattened. Investors were particularly disappointed by the economy’s inability […]

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Market Review and Outlook 4th Quarter 2013

January 23, 2014

The year 2013 opened with considerable uncertainty, yet concluded with the highest degree of market confidence in the US economy that we have seen in some time. Rising interest rates were mostly offset by the income generated by intermediate high grade bond portfolios, with total returns essentially flat or modestly down this year. However, this […]

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Market Review and Outlook 3rd Quarter 2013

October 23, 2013

The discouraging headlines of the summer of 2013, including the Detroit bankruptcy, financial instability in Puerto Rico, possible tapering of quantitative easing, and slow economic growth, could lead one to conclude that the bond market was having a difficult time. The reality, however, was a quarter of positive returns. During the 3rd quarter, the Barclays […]

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Market Review and Outlook 2nd Quarter 2013

July 24, 2013

The second quarter of 2013 was one of mixed economic data. The good news was that the economy showed signs of strength that we believe are likely to be sustainable. On the other hand, interest rates rose across the yield curve with the greatest impact on longer maturities. Our portfolios were not unaffected by the […]

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Bond Investing in a Low Interest Rate Environment

July 03, 2013

The investing environment of the past few years has been the most challenging that US bond managers have experienced in decades. Rates approached historic lows and then continued to ratchet still lower over the past three years. The search for value has evolved into an exercise requiring considerable patience, perception, and analysis. In recent months, […]

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Market Review and Outlook 1st Quarter 2013

April 22, 2013

The first quarter of 2013 might best be described as one of cautious optimism for U.S. investors as the U.S. consumer took more tentative steps towards increased confidence. This stance was reinforced by slow and steady job creation and some positive news from the housing market, although the potential for housing headwinds remains in the […]

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Market Review and Outlook 3rd Quarter 2012

October 19, 2012

Demand for municipal bonds continued to outpace supply over the past three months. This technical pressure, along with increased concerns about global economic weakness and greater confidence in municipal credit quality, pushed municipal yields to near historic lows. As a result, the Barclays Capital 5 Year Municipal Index generated returns of 1.36% for the quarter, […]

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Market Review and Outlook 2nd Quarter 2012

July 17, 2012

Demand for high-quality municipal bonds remained steady throughout the 2nd quarter, despite a significant increase in supply. While total new issuance is up sharply from last year, net supply is actually lower given that refinancings accounted for a significant portion of these new deals as issuers took advantage of historically low yields and strong demand. […]

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Market Review and Outlook 1st Quarter 2012

April 23, 2012

Mixed economic data, concerns about Europe, and supply-demand dynamics continued to drive the municipal bond market’s performance during the first quarter of 2012.  Although rates moved only modestly upward from year-end to March 31st, the volatility within the quarter was far more dramatic as 10-year AAA municipal yields surged over 60 basis points from January […]

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Market Review and Outlook 4th Quarter 2011

October 18, 2011

The municipal market entered 2011 with significant headwinds as many skeptics anticipated, and in some cases publicly predicted, widespread defaults throughout the sector.  The municipal bond market responded to these exaggerated concerns by turning in a stellar year.  Limited supply, increased demand, and an absence of widespread defaults helped drive the market.

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