Commentaries
Increasing U.S. Government Debt
Modern Monetary Theory proposes that governments that control their own currency should spend without limitation on programs they deem valuable because they can always create additional currency to pay off debts. Essentially, larger independent governments cannot run out of money and therefore should have little financial constraints regarding elevated spending and debt levels…
Personal Savings Rate
The U.S. Bureau of Economic Analysis (BEA) releases monthly statistics on consumer spending and saving habits per month. The “personal saving rate” is calculated as the ratio of personal saving to disposable personal income. Historically, the saving rate tends to increase during recessions…
Fiscal Support
President Biden announced the third phase of his $6 trillion spending plan, and is asking Congress to approve a $1.8 trillion American Families Plan. This proposal, along with the President’s two previous initiatives, stamp the administration’s view that the federal government should play a large role in the U.S. economy. It is likely that the latest two bills will get scaled back by Congress to the $4 Trillion range.
Steepening Yield Curve
Over the last 7 months the U.S. Treasury yield curve has shifted steeper, with a noticeable amount of change occurring over the last few weeks. Long-term treasury yields are rising while shorter-term..
Post Pandemic and Biden Administration Outlook
Economic growth should come easily as we enter the Biden administration’s first term. The United States willl be coming out of an economic downturn with significant fiscal support and easy monetary policy. We would anticipate a quicker recovery when compared to the recovery following the financial crisis…
Fixed Income Portfolio Strategy: Historic U.S. Stimulus
The United States has implemented historic monetary and fiscal policy during the COVID-19 pandemic. The Federal Reserve has increased their balance sheet holdings from $4 Trillion to over $7 Trillion and Congress has passed trillions of dollars in Stimulus funding. Corporations, businesses, and individuals…
Dividend Yield vs. 10-Year Treasury Yield
The current enviornment has changed the relationship between treasury securities and equities. The 10-year treasury note is currently yielding 0.82%, which is historically…
AHB Bond Market Update: Separately Managed Bond Portfolios
The US government has instituted initiatives to combat the spread of COVID-19. The most significant were several directives requesting the public to distance themselves from others as a means of combating the spread of COVID-19. The Federal Reserve, has engaged in a variety of measures…
SMAs vs. Mutual Funds
There are many differences between SMAs and Mutual Funds, highlighted in these piece are the three biggest advantages to selecting an SMA over a Mutual Fund.
Update On Recent Market Volatility
Capita lmarkets have become more volatile as a result of the global pandemic. The Federal Reserve lowered short term interest rates another 100 basis points to 0% and began a quantitative easing program, purchasing $700 billion of Treasuries…
Coronavirus/COVID-19 by the Numbers
The most recent news on the COVID-19/Coronavirus includes the U.S. Center for Disease Control (CDC) now telling the U.S. to prepare.
Bond Returns vs Inflation
The yield on both U.S. treasuries and Investment Grade corporate bonds have reached the lowest levels experienced in recent years.
Customized SMA’s vs Bond Mutual Funds
Abner, Herrman & Brock (AHB) manages customized Investment-Grade Taxable & Municipal Bond separately managed accounts (SMA’s). We are among the few firms that will truly customize a fixed income portfolio to achieve the client’s objectives.
Tax-Efficient Portfolio Transitions
The recent rise in equity prices over the last few years has left many individuals with sizable unrealized gains…
The Fiduciary Rule
The DOL’s Fiduciary Rule will become effective on June 9, 2017. AHB has solutions to help Advisors adjust to the change.
Importance of Local Municipal Credit Analysis
Local municipalities which rely less on state funding may be stronger than they appear in financially weak states…
Discount Munis and De Minimis
Due to an uptick in interest rates we are seeing municipal bonds trading at a discount. This brings up important taxation concerns – How is the gain taxed, and what effect does the taxation have on liquidity/performance of lower coupon securities…
High Yield Spreads Near Historical Lows
Junk bonds easily outperformed all other categories of fixed income although most of this positive performance in the asset class was due to spread compression…
Premium Bonds as an Investment Choice
Premium Bonds have advantages in today’s interest rate environment, but also have other effects you may not realize. See below to become better informed.
MARKETING COMMENTARIES
Customized SMA’s vs Bond Mutual Funds
Abner, Herrman & Brock (AHB) manages customized Investment-Grade Taxable & Municipal Bond separately managed accounts (SMA’s). We are among the few firms that will truly customize a fixed income portfolio to achieve the client’s objectives.