Despite late-cycle concerns after a decade of continuous growth, U.S. commercial real estate (CRE) appeared on track to extend positive performance through 2020. CRE benefited from a strong macroeconomic backdrop with low odds of recession and stable fundamentals while heading … Read More
During the first quarter, U.S. rates broadly rallied across most tenors. The two-year Treasury yield fell 132 basis points (bps) to 25 bps while the 10-year Treasury yield fell 125 bps to 67 bps as of March 31. Concurrently, credit … Read More
The onset of the COVID-19 pandemic earlier this year unleashed a worldwide public health crisis not experienced since the Spanish flu of 1918. Economic lockdowns ordered to slow the spread of the virus triggered an economic calamity in the U.S. … Read More
What is mortgage forbearance and how do borrowers request forbearance?
Mortgage forbearance is an agreement between the borrower and the mortgage servicer to
temporarily suspend mortgage payments for a period of time. Missed payments are not forgiven
and the borrower must make those … Read More
The COVID-19 pandemic is taking its toll on the global economy as countries shut down activity at a historic pace. The impact is hard to quantify a priori but will no doubt leave a large dent in its wake. Governments … Read More
Corporate-debt investors have never received this little yield for taking additional duration risk.
At this point, few superlatives are left to describe how historically expensive the bond market looks. The 30-year Treasury yield is just a few months removed from an … Read More
If 2018, as dubbed by Jeffrey Gundlach, was a “don’t lose money year,” 2019 can rightly be characterized as the opposite with a broad rally in risk assets globally. Coming off the elevated volatility in the last few trading days … Read More
Heading into 2020, we believe securitized products appear attractive relative to U.S. Treasuries (UST) and corporate credit. After a year of strong performance from investment grade corporate credit, which returned 13.80%, as measured by the Bloomberg Barclays U.S. Credit Index, … Read More
By way of metaphor, consider the smart phone. When smart phones were introduced, they brought together pre-existing technologies. Rather than inventing the cellular telephone, the calculator, the digital music player, the digital camera, e-mail or GPS navigation, smart phones packaged … Read More
The yield is the sum of the equivalent Treasury yield plus the spread over that Treasury yield. The yield on the asset class is near all-time lows, hovering below 3 per cent. The rate component is simply the nominal government … Read More