Executive Summary of Today’s FOMC Announcement The Announcement As expected, no change to the overnight rate or Quantitative Easing Programs The Fed continues to project their next rate hike for 2023 The central bankers specifically remind the market that they will be content to let inflation run above 2% for sometime in order to allow […]
Investors should be braced for a volatile bond market in 2021 as nervousness around inflation tests the resolve of central banks to get the economy motoring, according to one fixed income manager. Brian D’Costa, founding partner at Algonquin Capital, told WP it promises to be an exciting time for fixed income in light of the […]
“You can’t always get what you want But if you try sometimes, you just might find You get what you need.” The Rolling Stones Over the past few months, we’ve asked hundreds of investors and allocators a very simple question: what do you want from your fixed income? Imagine for a moment that interest rates […]
On Friday, Canada’s largest chain of movie theatres brought $250mm of 5y bonds to market with a coupon of 7.5%. This financing should provide a bridge until theatre re-openings, offering Cineplex 12-18 months of operating liquidity. The Backstory. After suffering declining attendance for several years, in December 2019, Cineplex shareholders were offered some salvation when […]
The Great Rate Debate | March 2021
“The only function of economic forecasting is to make astrology look respectable.” John Kenneth Galbraith Who would have thought the market spotlight could shift from Gamestop’s Reddit Army to the mundane world of fixed-income? But with material losses in long-duration bonds and warnings of rising yields, interest rates find themselves at the center of attention […]