Basis Points: Recent Episodes
Kevin Flanagan
As part of WisdomTree’s Investment Strategy group, Kevin serves as Head of Fixed Income Strategy. In this role, he contributes to the asset allocation team, writes fixed income-related content and travels with the sales team, conducting client-facing meetings and providing expertise on WisdomTree’s existing and future bond ETFs. In addition, Kevin works closely with the fixed income team. Prior to joining WisdomTree, Kevin spent 30 years at Morgan Stanley, where he was most recently a Managing Director. He was responsible for tactical and strategic recommendations and created asset allocation models for fixed income securities. He was a contributor to the Morgan Stanley Wealth Management Global Investment Committee, primary author of Morgan Stanley Wealth Management’s monthly and weekly fixed income publications, and collaborated with the firm’s Research and Consulting Group Divisions to build ETF and fund manager asset allocation models. Kevin has an MBA from Pace University’s Lubin Graduate School of Business, and a B.S in Finance from Fairfield University.
Important Information
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This material contains the opinions of the guest(s), which are subject to change, and should not be considered or interpreted as a recommendation to participate in any particular trading strategy, or deemed to be an offer or sale of any investment product, and it should not be relied on as such. There is no guarantee that any strategies discussed will work under all market conditions. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This material should not be relied upon as research or investment advice regarding any security in particular. The user of this information assumes the entire risk of any use made of the information provided herein. Neither WisdomTree nor its affiliates, nor Foreside Fund Services, LLC, or its affiliates provide tax or legal advice. Investors seeking tax or legal advice should consult their tax or legal advisor. Unless expressly stated otherwise, the opinions, interpretations or findings expressed herein do not necessarily represent the views of WisdomTree or any of its affiliates.
With the government shutdown now stretching into its second week, key data releases have been delayed and uncertainty is rising. In this week’s episode of Basis Points, Kevin Flanagan shares how investors should interpret the lack of new economic data, and why the current backdrop differs from shutdowns of the past. Listen now for perspective on rates, risks, and what could come next.
Basis point: 1/100th of 1 percent.
ISM Services PMI: The ISM Services PMI (formerly the ISM Non-Manufacturing Index) provides a detailed look at the economy from a non-manufacturing standpoint.
Purchasing Managers’ Index (PMI): An indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employmentenvironment. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction while 50 indicates no change.
Where should fixed income investors look now that the Fed has resumed rate cuts? In this episode of Basis Points, Kevin Flanagan explains why Treasury Floating Rate Notes continue to stand out as a compelling option in today’s shifting interest rate landscape. Listen now for perspective on positioning portfolios in a lower-rate environment and why flexibility matters more than ever.
Basis point: 1/100th of 1 percent.
Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary
As was widely expected, the Fed implemented a 25-basis-point rate cut at today's FOMC meeting, bringing the new Fed Funds trading range down to 4%–4.25%. This week on Basis Points, Kevin Flanagan explains why the Fed’s next steps may hinge on how job growth evolves and whether inflation keeps creeping above target.
Basis point: 1/100th of 1 percent.
Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary
How low can yields go and what comes next? This week on Basis Points, Kevin Flanagan unpacks the latest jobs report and what it signals for the Fed’s next move. With signs of labor market cooling, Kevin discusses the path ahead for Treasury yields and how a measured rate cut cycle could support a more stable, constructive environment for fixed income investors. Basis point: 1/100th of 1 percent.
What’s really happening inside the Fed? This week on Basis Points, Kevin Flanagan breaks down recent headlines around Chair Powell’s future, board reshuffling, and what it all could mean for upcoming policy decisions. With a rate cut in play, Kevin offers perspective on how the Fed operates, what could shape the next FOMC outcome, and why the data still leads the way.
Basis point: 1/100th of 1 percent.
Following the softer than expected July jobs report, the money and bond markets have fully embraced the narrativethat a Fed rate cut will be coming at the September FOMC meeting. In this episode, Kevin Flanagan gives his thoughts on the Treasury yield curves to watch and where they may be headed in the months ahead.
Basispoint: 1/100th of 1 percent.
Please see the WisdomTreeGlossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary
A surprisingly soft July jobs report – and what appears to be the largest non-COVID downward revision since 1979 – has shifted the Fed conversation. In this week’s episode of Basis Points, Kevin Flanagan breaks down why a September rate cut may now be in play, what to watch in upcoming inflation data, and how investors can position portfolios with short-duration fixed income strategies.
Basis point: 1/100th of 1 percent. Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
At the July FOMC meeting, the Fed left rates unchanged for the fifth straight time, holding firm at 4.25%–4.50%. This week on the Basis Points podcast, Kevin Flanagan explains why mixed data, tariff risks and signs of internal dissent are keeping policy makers cautious on the next move.
Basis point: 1/100th of 1 percent.
Private credit is no longer just for institutions and investors are taking notice. This week on the Basis Points podcast, Kevin Flanagan is joined by Chris Acito, CEO of Gapstow Capital Partners, to unpack what private credit is, why it’s gaining traction and how investors can access it through the WisdomTree Private Credit and Alternative Income Fund (HYIN). Listen now to learn why this asset class is resonating with investors and how it could fit in your portfolio.
Basis Point: 1/100th of a percent.
Wondering what the second half of 2025 could look like for muni bonds? This week on Basis Points, Kevin Flanagan talks with Jeff Burger, Senior Portfolio Manager at Insight Investment, about why recent legislation, aka the “One Big Beautiful Bill”, may be opening up new doors for Muni investors. From market supply to income potential, get the inside scoop on what makes WTMU and WTMY timely fixed income ideas.Basis Points: 1/100th of 1 percent.
The WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY) has a decade under its belt, and a performance edge to show for it. This week on Basis Points, Kevin Flanagan shows how this core bond ETF outpaced the Agg by +1.6% over 10 years, proving its staying power across market cycles. Basis Point: 1/100th of 1 percent. Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
On top of all the geopolitical headlines the money and bond markets have had to contend with of late, there has been another news story which has recently garnered its own fair share of headlines: a new Fed Chair. This week on Basis Points, Kevin Flanagan gives his take on the conjecturing happening related to this possibility.
Basis Point: 1/100th of a percent.
The Fed left rates unchanged for the fourth straight time in arow at the June FOMC meeting, holding the Fed Funds range at 4.25%–4.50%. This week on Basis Points, Kevin Flanagan explains why Powell & Co. remain firmly in “wait and see” mode as tariff risks and mixed macro signals cloud the outlook for future cuts.
Basis Points: 1/100th of 1 percent.
Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
Munis are the only major U.S. fixed income sector delivering negative returns in 2025, down 1.1%. This week on Basis Points, Kevin Flanagan analyzes why this underperformance may actually present a rare value opportunity for muni investors against this backdrop. Basis Points: 1/100th of 1 percent. Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
From the back-and-forth headlines on tariffs to Powell’s cautious Fed messaging, investors face a summer of policy-driven volatility. This week on Basis Points, Kevin Flanagan is joined by Samuel Rines, Macro Strategist of Model Portfolios to unpack the latest developments in tariffs, tax bills and Treasury markets, and explain why staying grounded in fundamentals is more important than ever.
Basis Points: 1/100th of 1 percent.
Please see the WisdomTree Glossary for Definitions of terms: https://www.wisdomtree.com/glossary
The U.S. Treasury market had a volatile week, as Moody’s downgraded the U.S. credit rating and lawmakers advanced a major fiscal policy bill. This week on Basis Points, Kevin Flanagan explains why investor attention has turned to long-duration debt and what it signals about concerns over deficits and debt sustainability.Basis Points: 1/100th of 1 percent. Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
In what investors thought was going to be a nice start to a weekend in May got turned around with a late Friday announcement that Moody’s had just downgraded the U.S. long-term credit rating. This week on Basis Points, Kevin Flanagan provides context for investors and explains why the move was expected, aligns with past ratings, and ultimately won’t shake Treasuries’ global dominance. Basis Points: 1/100th of 1 percent. Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
Volatility in U.S. Treasury yields hasn’t spared any corner of the fixed income market, except one. Kevin Flanagan explains why Treasury Floating Rate Notes (FRNs) offer stability without layering on credit risk, making the case for Treasury-backed solutions like the WisdomTree Floating Rate Treasury Fund.
Basis Point: 1/100th of a percent.
Once again, the Fed decided to keep rates unchanged at today’s FOMC meeting, leaving the Fed Funds trading range at 4.25%–4.50%. This week on Basis Points, Kevin Flanagan explains why resilient job data and tariff-driven noise are keeping Powell & Co. in wait-and-see mode on policy moves.Basis Point: 1/100th of a percent.
Global trade is being redefined through structural tariffs and new alliances. This week on Basis Points, Kevin Flanagan is joined by WisdomTree Macro Strategist of Model Portfolios, Sam Rines and Head of Equity Strategy, Jeff Weniger to discuss how investors should position for the next phase of global macro realignment. Basis Points: 1/100th of 1 percent. Please see the WisdomTree Glossary for Definitions of terms and indexes: https://www.wisdomtree.com/glossary
April brought heightened volatility to the financial markets, reinforcing the value of an active-passive barbell strategy for fixed income investing. This week on Basis Points, Kevin Flanagan explains how a repositioning in the Bianco Research Fixed Income Index supports a responsive, active core bond strategy in turbulent times.
Basis point: 1/100th of 1 percent.
Bianco Research Fixed-Income Total Return Index: The Bianco Research Fixed Income Total Return Index seeks to outperform a comparable baseline neutral portfolio of fixed income securities.
With interest rates returning to more normalized levels, municipal bond yields are drawing renewed attention—and investors are looking for time-tested strategies to navigate this evolving landscape. This week on Basis Points, Kevin Flanagan is joined by Rick Harper to introduce the WisdomTree Core Laddered Municipal Bond Fund (WTMU) and the WisdomTree High Income Laddered Municipal Bond Fund (WTMY), combining the consistency of laddered bond strategies with the active credit expertise of Insight Investment Management.
Basis point: 1/100th of 1 percent.
Bloomberg Municipal Bond Index: Measures the performance of the Bloomberg U.S. Municipal bond market.
Obligor: refers to a bond issuer who is contractually bound to make all principal repayments and interest payments on outstanding debt.
Uncertainty remains the defining theme as investors await the April 2nd tariff announcement. In the latest episode of Basis Points, Kevin Flanagan is joined by Sam Rines (Macro Strategist at WisdomTree) and they break down how Trump’s trade stance, Powell’s Fed, and interest rate expectations are shaping market dynamics.
Basis Points: 1/100th of 1 percent.
The Fed just hit pause, again, at the March FOMC meeting, keeping rates steady at 4.25%-4.50% amid economic uncertainty. With policymakers in “wait and see” mode, this week on Basis Points, Kevin Flanagan breaks down what’s driving the decision and what it means for fixed income investors.
Basis point: 1/100th of 1 percent.
The bond market can turn on a dime, and 2025 is proving to be no exception. This week on Basis Points, Kevin Flanagan unpacks how tariff uncertainty and federal job cuts are steering the bond market, and what investors should watch next. Basis point: 1/100th of 1 percent.
Bond market volatility has made extending duration an unreliable strategy, with the U.S. Treasury 10-year yield swinging between 3.6% and 5% over the past 18 months. This week on Basis Points, Kevin Flanagan explains why Floating Rate Notes (FRNs) have outperformed longer-duration bonds and how they can help investors navigate interest rate uncertainty.
Barbell: The barbell is an investment strategy applicable primarily to a fixed income portfolio.
Basis point: 1/100th of 1 percent.
Private credit has surged in popularity, but how does it stack up against public credit heading into 2025? This week on Basis Points, Kevin Flanagan leads a discussion with Morgan Stanley’s Vishwanath Tirupattur to break down the competitive landscape, expected returns, and why both markets are carving out distinct roles in investor portfolios.
Basis point: 1/100th of 1 percent.
The U.S. labor market is proving more resilient than expected, with job growth on the rise just months after the Fed’s first rate cut. This week on Basis Points, Kevin Flanagan breaks down why this shift raises the bar for future easing and what it means for fixed income investors.
Basis point:1/100th of 1 percent.
President Trump’s second term has reignited economic policy shifts, including tariffs and executive orders, while Fed Chair Jerome Powell remains cautious on rate cuts. With Treasury yields likely to stay elevated, Kevin Flanagan is joined by Macro Strategist, Sam Rines to discuss why investors should prepare for continued volatility and consider a strategic fixed income approach to navigate the evolving landscape.Basis point: 1/100th of 1 percent.
For the first time since September, the Federal Reserve kept rates unchanged at the January FOMC meeting, holding the Fed Funds target range at 4.25%–4.50%. But is this pause a step toward more rate cuts or the beginning of a more cautious approach? This week on the Basis Points podcast, Kevin Flanagan shares the key takeaways from the January meeting, the Fed’s recalibrated stance and why the definition of a “neutral” rate remains a moving target.
Basis Point: 1/100th of a percent.
U.S. corporate bonds are currently exhibiting historically tight spreads, with investment-grade and high-yield spreads at +80bp and +270bp, respectively, levels not seen since 1998 and 2007. Despite potential headwinds like tight spreads and increased supply, this week on Basis Points, Kevin Flanagan covers why elevated yield levels and supportive macroeconomic conditions suggest a neutral outlook for U.S. corporates in fixed-income portfolios.
Basis point: 1/100th of 1 percent.
For the first time in years, U.S. Treasury yield curves are back in positive territory. This week on the Basis Points podcast, Kevin Flanagan explains how the Fed’s rate cuts and a shifting macro narrative have reshaped the fixed-income landscape and why a flat slope still requires cautious positioning. Basis point: 1/100th of 1 percent. Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now
Could the U.S. Treasury 10-Year yields break the 5% threshold in 2025? This week on Basis Points, Kevin Flanagan explains why a modest U.S. economic outlook, bumpy inflation progress and historical trends suggest a trading range of 4%–5% in 2025.
Basis point: 1/100th of 1 percent.
As expected, the Fed delivered a 25-basis point rate cut at the December FOMC meeting, but what comes next is far from clear. This week on the Basis Points, Kevin Flanagan discusses why future rate moves depend on shifting economic signals and why the Fed’s definition of “neutral” may be evolving.
Basis point: 1/100th of 1 percent.
With U.S. interest rates back to “normal” levels, fixed income investors face a landscape many haven’t seen in years. This week on the Basis Points podcast, Kevin Flanagan is joined by Jim Bianco, President of Bianco Research to cover how blending active and passive bond strategies — now more accessible through ETFs — may help navigate this evolving environment.
Basis point: 1/100th of 1 percent.
Bianco Research Fixed-Income Total Return Index: seeks to outperform a comparable baseline neutral portfolio of fixed income securities.
Treasury Floating Rate Notes provide income without taking on duration risk—a key advantage while the 3-month/10-year Treasury yield curve remains inverted. This week on the Basis Points podcast, Kevin Flanagan explores how the WisdomTree Floating Rate Treasury Fund (USFR) could fit within an active/passive core fixed income portfolio.
Basis point: 1/100th of 1 percent.
Navigating today’s fixed income market is about more than timing—it’s about strategy. This week on the Basis Points podcast, Kevin Flanagan highlights the Bianco Research Fixed Income Total Return Index's recent re-positioning to neutral duration, underscoring how active management adapts to steepening yield curves and credit risks.
Basis Point: 1/100th of a percent
Bianco Research Fixed-Income Total Return Index: The
Bianco Research Fixed Income Total Return Index seeks to outperform a comparable baseline neutral portfolio of fixed income securities.
The U.S. Treasury market reacted sharply to last week’s election and Fed meeting. This week on the Basis Points podcast, Kevin Flanagan unpacks why Treasury yields are likely to stay elevated in the months ahead.
Basis point: 1/100th of 1 percent.
After a bold 50-basis point (bp) cut in September, the Fed dialed down to a 25-bp rate reduction at today’s FOMC meeting. This week on the Basis Points podcast, Kevin Flanagan breaks down how shifting economic data is complicating the path for future rate cuts—and why the Fed might even pause by early 2025 if inflation gets sticky and the labor markets don’t soften as expected.
Basis Point: 1/100th of 1 percent.
A barbell strategy builds a strong foundation for a bond portfolio, but how can investors enhance that? This week on the Basis Points podcast, Kevin Flanagan explains how securitized fixed income could potentially boost investor portfolios with added income from mortgage-backed and asset-backed securities.
Basis point: 1/100th of 1 percent.
The U.S. Treasury market has experienced two significant rallies over the past year, with investors waiting for a validation of declining yields. This week on the Basis Points podcast, Kevin Flanagan discusses the recent UST yield reversal, shifting Fed rate cut expectations, and the potential impact of upcoming economic data on the bond market.
Basis point: 1/100th of 1 percent.
The private credit market may be primed for more attention with the start of the latest rate cut cycle. This week on the Basis Points podcast, Kevin Flanagan is joined by the CEO of Gapstow Capital Partners, Chris Acito to discuss the latest on this growing asset class. They also offer insight into how the WisdomTree Alternative Income Fund, HYIN, can offer strategic exposure for investors and advisors.Basis Point: 1/100th of a percent.Gapstow Liquid Alternative Credit Index (GLACI) : An equal-weighted index that tracks the performance of 35 “Publicly Traded Alternative Credit Vehicles” (PACs) using an objective, rules-based methodologyTo learn more about the different types of products please see our glossary: https://www.wisdomtree.com/glossary
With the Fed “recalibrating” monetary policy towards rate cuts, the uncertainty now shifts to the timing and magnitude of this easing. In the latest Basis Points episode of the Money in Motion series, Kevin Flanagan presents a barbell approach, utilizing our Floating Rate Treasury Fund (USFR) and Yield Enhanced U.S. Aggregate Bond Fund (AGGY).
Basis point: 1/100th of 1 percent.
Barbell: The barbell is an investment strategy applicable primarily to a fixed income portfolio.
After much anticipation, the Fed finally delivered a rate cut at today’s FOMC meeting. This week on the Basis Points podcast, Kevin Flanagan examines the Fed’s data-driven approach, the potential disconnect between market expectations and Fed actions and the crucial role employment data will play in shaping future rate cuts. Basis point: 1/100th of 1 percent.
The UST 2-Year/10-Year yield curve has recently shifted into positive territory, while the UST 3-month/10-Year curve remains deeply inverted. This week on a special episode of the Basis Points podcast, Kevin Flanagan discusses the divergence between the curves, and highlights market expectations on future Fed rate cuts and the potential for a steepening trend ahead.
Basis Point: 1/100th of a percent.
With Labor Day behind us, the focus for money and bond markets shifts to the September FOMC meeting, where Fed Chair Powell has hinted at a rate cut. This week on the Basis Points podcast, Kevin Flanagan explores the implications of the upcoming September FOMC meeting and discusses the Fed’s shift in focus from inflation to labor market data.
Basis point: 1/100th of 1 percent.
With rate cuts now definitively expected by the bond market for the September FOMC meeting, some perspective is in order. In the third installment of the Money in Motion series, Kevin Flanagan discusses the implications of the new rate regime in U.S. Treasury yields and highlights the advantages of floating rate notes in this investment landscape.
Basis Point: 1/100th of a percent
Treasury yield: The return on investment, expressed as a percentage, on the debt obligations of the U.S. government.
Will we experience another case of déjà vu and witness another rally in the U.S. Treasury market? This week on the Basis Points podcast, Kevin Flanagan explains why the Treasury rally needs to be validated. Basis point: 1/100th of 1 percent.
The combination of a dovish Fed Chairman Powell post-FOMC presser and cooling labor market setting provided more fuel for Fed rate cuts. Kevin Flanagan discusses how the debate is no longer centered around the number of potential easing moves for the remainder of 2024, but rather, how large they could possibly be in his Money inMotion series.
Basis point: 1/100th of 1 percent.
At yesterday's FOMC meeting, the Fed kept rates unchanged, marking the eighth consecutive meeting where policymakers decided to take no action on the rate front. Against this backdrop, Kevin Flanagan discusses the possibility of a rate cut in the next FOMC meeting in September.
Basis point: 1/100th of 1 percent.
The news of President Biden dropping out of the presidential race has created a whole new layer of uncertainty into the market backdrop. Amid this volatility, we suggest honing in on an issue with more clarity: Fed rate cuts. In the first Basis Points podcast episode of the 'Money in Motion' series, Kevin Flanagan discusses how investors can strategically navigate rate cuts in their fixed income portfolios using a barbell strategy.
Basis Point: 1/100th of a percent.
Lately, a hot topic in the investment space has been the timing of when the UST curve could 'un'invert. This week on the Basis Points podcast, Kevin Flanagan covers the dynamics behind yield curve movements, including the timing and factors that could cause the yield curve to move out of negative territory.
Basis Point: 1/100th of a percent.
It has been two years since the Treasury yield curve moved into negative territory and the U.S. economy has yet to move into recession territory. This week on the Basis Points podcast, Kevin Flanagan explores the relationship between inverted yield curves and recessions and discusses the current state of the labor market and its impact on the economy.
Basis Point: 1/100th of a percent.
At today's FOMC meeting the Fed kept rates unchanged, marking the seventh consecutive FOMC meeting where the policymakers decided to take no action on the rate front. With half of the FOMC meetings for the year in the books, this week on the Basis Points podcast, Kevin Flanagan discusses the possibilities for the latter part of 2024.
Basis Point: 1/100th of a percent.
Against the backdrop of a new rate regime in the fixed income landscape, investors have been trying to determine where to allocate funds. Kevin Flanagan dives into key trends within U.S. Credit and why investors should consider this sector of fixed income.
Basis point: 1/100th of 1 percent.
Treasury yield: The return on investment, expressed as a percentage, on the debt obligations of the U.S. government.
Fed policy has been the primary force driving the money and bond markets for the past few years. This week on the Basis Points podcast, Kevin Flanagan discusses how the Fed's data dependency has led to volatility in the bond market.
Basis point: 1/100th of 1 percent.
Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.
As we entered this year, all eyes were on the Federal Reserve’s rate-cutting trajectory. The question wasn’t “if” but “when” and “by how much.” However, recent developments have turned the narrative on its head. This week on the Basis Points podcast, Kevin Flanagan discusses this shift and the effect on the markets.
Basis Point: 1/100th of a percent.
At today's FOMC meeting, the Fed kept rates unchanged, marking the sixth consecutive time the policymakers decided to take no action on the rate front. This week on the Basis Points podcast, Kevin Flanagan looks ahead for what investors could expect for the remaining meetings this year.Basis Points: 1/100th of a percent.
Following last week’s “hotter” than expected CPI release, the sole focus for the money and bond markets was to, yet again, dial back their Fed rate cut expectations. Ahead of the May FOMC meeting, this week on the Basis Points podcast, Kevin Flanagan dives into an aspect of Fed policy decision-making that has been flying under the radar: the balance sheet. Basis point: 1/100th of 1 percent.Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.Federal Open Market Committee (FOMC): The branch of the Federal Reserve Board that determines the direction of monetary policy.Tapering: A shift in monetary policy by which the Federal Reserve would begin decreasing the amount of bonds it purchases.
The first three months and change of 2024 has brought with it a rather noteworthy shift in bond market sentiment. With Fed policy decision-making remaining data dependent for the foreseeable future, this week on the Basis Points podcast Kevin Flanagan discusses why investors should consider utilizing the time-tested barbell strategy to navigate not only the current setting, but more importantly, what potentially lies ahead.
Basis Point: 1/100th of a percent
Bloomberg Aggregate Bond Index : The Bloomberg Aggregate Bond Index or "the Agg" is a broad-based fixed-income index used by bond traders and the managers of mutual funds and exchange-traded funds (ETFs) as a benchmark to measure their relative performance.
As the inflation marathon enters the homestretch, the last mile might not be about to get more difficult. This week on the Basis Points podcast, Kevin Flanagan discusses why the journey to the Federal Reserve’s target might not be as smooth as anticipated, and what this could mean for rate cuts and the bond market’s response.
Basis point: 1/100th of 1 percent.
Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.
Personal Consumption Expenditure (PCE) Price Index: measure of price changes in consumer goods and services in the U.S. economy.
At today’s FOMC meeting, the Fed did what was widely expected yet again and kept the Fed Funds target unchanged. This week on the Basis Points podcast, Kevin Flanagan discusses the Fed’s balancing act between hopeful markets and the reality of economic indicators and what it means for the future of U.S. Treasuries.Basis point: 1/100th of 1 percent.
With income back in fixed income, uncertainty around the bond markets and a new rate regime in play, one strategy (and two new ETFs) can help you prepare for a range of rate scenarios. This week on the Basis Points podcast, Kevin Flanagan is joined by WisdomTree CIO of Fixed Income & Model Portfolios Rick Harper to discuss laddered treasury solutions — the time-tested approach behind our Suite of Treasury ETFs.
Basis Point: 1/100th of a percent.
With rate cuts now being the primary focus of the markets, the conversation has revolved around when such a move could occur and what the path would ultimately look like. This week on the Basis Points podcast, Kevin Flanagan discusses the rate cutting cycle that occurred in 1995/1996 and how it parallels the current market environment.
Basis Point: 1/100th of a percent.
The U.S. economy and inflation have surprised the bond market in 2024, reversing the rally of 2023. This week on the Basis Points podcast, Kevin Flanagan explores the implications of this on the UST 10-year yield and the Fed’s rate policy.
Basis point: 1/100th of 1 percent.
2024 marks ten years since the issuance of U.S. Treasury (UST) floating rate notes (FRNs) and the launch of our Floating Rate Treasury Fund (USFR). This week on the Basis Points podcast, Kevin Flanagan discusses how USFR seeks to offer a solution for the current and prospective interest rate landscape.
Important Information:
Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available at https://www.wisdomtree.com/investments
Basis point: 1/100th of 1 percent.
Treasury floating Rate Notes: a debt instrument with a variable interest rate. The interest rate for an FRN is tied to a benchmark rate. Benchmarks include the U.S. Treasury note rate, the Federal Reserve funds rate—known as the Fed funds rate—the London Interbank Offered Rate (LIBOR), or the prime rate.
Bloomberg US Aggregate Total Return Index: a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.
Yields are high and profit margins have held up well despite rising cost pressures. How will that affect U.S. Credit? What are the drivers behind this growth? And where is the market headed? This week on the Basis Points podcast, Kevin Flanagan leads a discussion with Morgan Stanley’s Vishwas Patkar on what makes U.S. credit potentially attractive to investors and advisors, and the trends that will shape it over the next year.
Basis Point: 1/100th of a percent.
Is the U.S. Treasury market experiencing a "Groundhog Day"? This week on the Basis Points podcast, Kevin Flanagan reflects on this time last year when the bond market was anticipating a recession and counting on weak jobs data to confirm it as we enter a similar narrative heading into 2024.
Basis Point: 1/100th of a percent.
Today marked the first FOMC meeting of 2024, and as widely expected, the Fed kept the Fed Funds target unchanged. We believe rate cuts are coming, but they do not appear to be imminent just yet. This week on the Basis Points podcast, Kevin Flanagan provides his insights on the Fed’s timing for rate cuts in 2024 and analyzes factors that will affect monetary policy in 2024.
Basis Points: 1/100th of a percent.
An interesting development occurred last week: Fed 'pushback'. This week on the Basis Points podcast, Kevin Flanagan discusses what this means and what investors should be considering regarding how to play this pivot in monetary policy.
Basis point: 1/100th of 1 percent.
The money and bond markets appear to be ‘doubling down’ on their optimistic expectations for Fed rate cuts this year, leaving investors to continue to be faced with elevated volatility. This week on the Basis Points podcast, Kevin Flanagan reviews the latest U.S. Treasury yields and discusses how investors can play defense against this backdrop.
Basis point: 1/100th of 1 percent.
This year was a roller coaster for fixed income. What's in store for investors in 2024? This week on the Basis Points podcast, Kevin Flanagan provides a 2023 recap and outlines some key themes for the new year.
Basis Point: 1/100th of a percent.
While the Fed didn't cut rates at the December policy meeting, we believe they will be coming in 2024. This week on the Basis Points podcast, Kevin Flanagan highlights two WisdomTree funds that can help bond investors navigate the investment landscape that may be lying ahead.
Basis point: 1/100th of 1 percent.
At today’s FOMC meeting, the Fed did what was widely expected and kept interest rates unchanged. This week on the Basis Points podcast, Kevin Flanagan provides his insights on the disconnect between the Fed and market expectations, as well as the impact on fixed income investors.
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What action will the Fed take next and where is the market headed? In this special episode of the Basis Points podcast, Kevin Flanagan is joined by Matt Hornbach Global Head of Macro Strategy at Morgan Stanley. During the episode, the speakers offer their insights and perspectives on Morgan Stanley’s 2024 Outlook for the bond market titled Land of Confusion. They also discuss the market’s expectations given the current decline in Treasury yields and uncertainty regarding interest rates.
Basis point: 1/100th of 1 percent.
Federal Open Market Committee (FOMC): The branch of the Federal Reserve Board that determines the direction of monetary policy.
Yield: The income return on an investment. Refers to the interest or dividends received from a security that is typically expressed annually as a percentage of the market or face value.
One of the more noteworthy developments in the financial markets of late has been the plunge in U.S. Treasury (UST) yields. This week on the Basis Points podcast, Kevin Flanagan reviews the implications and provides some monetary policy outlook for 2024.
Basis point: 1/100th of 1 percent.
Federal funds rate: The rate that banks that are members of the Federal Reserve system charge on overnight loans to one another. The Federal Open Market Committee sets this rate. Also referred to as the “policy rate” of the U.S. Federal Reserve.
Treasury yield: The return on investment, expressed as a percentage, on the debt obligations of the U.S. government.
We believe investors are being faced with a new rate regime as we get ready to enter 2024. This week on the Basis Points podcast, Kevin Flanagan surveys the state of the U.S. Treasury (UST) market and outlines how investors can prepare.
Basis Point: 1/100th of a percent.
As we approach the end of 2023, investors may want to take stock of their fixed income portfolio and consider how to position for the new year. This week on the Basis Points podcast, Kevin Flanagan discusses tax-loss harvesting and how to implement a barbell strategy with a few of our fixed income ETFs.
Basis point: 1/100th of 1 percent.
Duration: A measure of a bond’s sensitivity to changes in interest rates. The weighted average accounts for the various durations of the bonds purchased as well as the proportion of the total government bond portfolio that they make up.
One takeaway from the November FOMC meeting is that tighter financial conditions are now a key monetary policy input. This week on the Basis Points podcast, Kevin Flanagan analyzes the Chicago Fed National Financial Conditions Index to gauge the current state of the markets.Basis Point: 1/100th of a percent.
At today’s FOMC meeting, the Fed voted to keep interest rates unchanged. As a result, the trading range remains at 5.25%–5.50%, a more than 20-year high watermark. This week on the Basis Points podcast, Kevin Flanagan analyzes the impact of the rise in Treasury yields, the ongoing quantitative tightening and the new rate regime on fixed income investors.
Basis point: 1/100th of 1 percent.
We believe investors are being faced with a new rate regime as we get ready to enter 2024. This week on the Basis Points podcast, Kevin Flanagan surveys the state of the U.S. Treasury (UST) market and outlines how investors can prepare.
Basis Point: 1/100th of a percent.
The U.S. economy has been resilient despite the inverted yield curves, but is it too early to celebrate? This week on the Basis Points podcast, Kevin Flanagan discusses how the recent surge in UST 10-yr yield has changed the shape of the curves and what it means for the future of the economy.
Basis point: 1/100th of 1 percent.
Halloween season is now upon us and if you look at recent price action within the U.S. Treasury (UST) market, it looks as if the ‘spooks’ have already started. This week on the Basis Points podcast, Kevin Flanagan discusses why this is happening and how investors can position their bond portfolios as the U.S. Treasury market 10-year yield hits a 16-year high.
Basis point: 1/100th of 1 percent.
Barbell: The barbell is an investment strategy applicable primarily to a fixed income portfolio.
The Fed left the interest rates unchanged at today’s FOMCmeeting, keeping the trading range at 5.25% –5.50%. Could the markets still see another rate hike in 2023? This week on the Basis Points podcast, Kevin Flanagan discusses the possibility of another rate hike as we move into Q4 and head toward 2024.
Basis point: 1/100th of 1 percent.
One of the more surprising outcomes so far this year is that markets have yet to see a recession. This week on the Basis Points podcast, Kevin Flanagan examines two indicators of economic growth, GDI and GDP, and discusses what to anticipate in Q3 and the rest of 2023.
Basis Point: 1/100th of 1 percent.
While the Fed has emphasized that future policy decisions would be based on the “totality” of upcoming economic data, make no mistake, employment reports go to the front of the line. As the September FOMC meeting approaches, Kevin Flanagan analyzes the latest jobs numbers on this week’s episode of the Basis Points podcast.
Basis point: 1/100th of 1 percent.
While Powell didn’t offer up any groundbreaking headlinesin his Jackson Hole speech last week, the overarching message from the chair still resounds loud and clear: rates will be “higher for longer.” This week on the Basis Points podcast, Kevin Flanagan aims to answer the question, how high and how long?
Basis point: 1/100th of 1 percent.
For those looking for a summer respite for the bond market in August…think again. This week on the Basis Points podcast, Kevin Flanagan gets into the root causes of the recent increase in the 10-Year yield and whether it is reasonable to expect a reversal any time soon.
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How does the U.S. budget deficit affect the Treasury market and the economy? This week on the Basis Points podcast, Kevin Flanagan covers the recent developments on the deficit, the U.S. government’s long-term rating downgrade, and the funding challenges.
Basis Point: 1/100th of a percent.
Throughout the course of the current Fed rate hike cycle and attendant increase in the U.S. Treasury (UST) 10-year yield, investors periodically ask: is it time to go long duration? This week on the Basis Points podcast, Kevin Flanagan explains why it’s better to be late rather than early to the duration party against this backdrop.
Basis Point: 1/100th of 1 percent.
The Federal Reserve voted to raise rates by another quarter point at today’s FOMC meeting. This pushes the fed funds target range to the highest level since early 2001. This week on the Basis Points podcast, Kevin Flanagan discusses the outcome of today’s meeting and what to expect for the remainder of the year from the Fed.
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Is 2022 the year not to be named? After what was arguably the worst year on record, we believed this year could be a positive one for bond investors. This week on the Basis Points podcast, Kevin Flanagan takes a look back and ahead at key economic indicators to provide a first half report card for the fixed income markets and what investors might expect in the second half of the year.
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Following the June FOMC meeting where Fed hit pause, speculation began to intensify about what the policymakers next move could be. This week on the Basis Points podcast, Kevin Flanagan delves into the recent Fed developments and if the Fed is really going to pause rate hikes for the summer.
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As the Federal Reserve's "hawkish pause" dominates headlines, investors are left wondering when the long-anticipated recession will be coming. During this week’s episode of the Basis Points podcast, Kevin Flanagan is joined by Head of Credit Strategy, Sri Sankaran of Morgan Stanley to discuss the current dynamics in the high yield bond, credit default and leverage loan markets.
Basis Point: 1/100th of a percent.
Throughout this Fed rate hike cycle, there always seemed to be some sort of disconnect between what the policymakers were saying and what the money and bond markets were thinking. Recently, 'don't fight the Fed' seems to be the current sentiment. This week on the Basis Points podcast, Kevin Flanagan discusses the shift.
Basis Point: 1/100th of a percent.
For the first time since the Fed began raising rates in March of last year, the voting members did not implement a rate increase at the recent June FOMC meeting. This week on the Basis Points podcast, Kevin Flanagan discusses U.S. monetary policy implications, including investor expectations for the remainder of the year as Powell & Co. take a pause from rate action.
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With the debt saga still ongoing, sometimes looking at current headlines juxtaposed with historical events can provide some useful context. This week on the Basis Points podcast, Kevin Flanagan covers what investors can learn from the 2011 credit rating downgrade.
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The money and bond markets find themselves in an interesting spot on the calendar, nestled right in between the May and June FOMC meetings. This week on the Basis Points podcast, Kevin Flanagan discusses the latest Fedspeak and if it could translate to a skip, a pause, or even a cut.Basis Point: 1/100th of 1 percent.
It’s been roughly two months now operating in a post-Silicon Valley Bank (SVB) World and the markets are still feeling its impact. This week on the Basis Points podcast, Kevin Flanagan discusses a very important arena where developments have seemingly flown under the radar of late: the funding markets.
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How concerned should investors be about the pending debt ceiling debate? This week on the Basis Points podcast, Kevin Flanagan reviews past debt ceiling sagas, discusses what investors should focus on and looks at possible outcomes.
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In what was a widely expected outcome, the Fed raised interest rates by another quarter point today, elevating the Fed Funds trading range to its highest level since 2007. Now what? This week on the Basis Points podcast, Kevin Flanagan discusses what to expect from Powell & Co. next and what to anticipate for the investment landscape in the months ahead.
Basis Point: 1/100th of 1 percent.
Do you remember when inverted Treasury Yield Curves were all the rage? This week on the Basis Points podcast, Kevin Flanagan reflects on the year that was and covers the state of the inverted treasury yield curves along with its predictive value on recession fears today. Listen now as Kevin discusses what’s at play in the Treasury market for investors, including, among other things, the 2- and 10-year gauges.Basis Point: 1/100th of 1 percent.
After a slew of second-tier data points last week, the market was feeling uneasy about the economy's health, but the March jobs report could provide some breathing room for investors. This week on the Basis Points podcast, Kevin Flanagan discusses the impact of the latest economic data on the treasury market and potential recession risks. Listen now as Kevin dives deeper into the intersection of economic indicators and fixed income investing.
Basis Point: 1/100th of 1 percent.
This week on the Basis Points podcast, Kevin Flanagan discusses a new dynamic in the U.S. Treasury market ignited by the recent banking crisis. Listen now to hear Kevin’s insights regarding elevated volatility, unusual trading and key yield activities over the last month.
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This week on the Basis Points podcast, Kevin Flanagan discusses the Fed’s actions following the Silicon Valley Bank collapse. During the episode, Kevin covers the regional and international impact of the collapse and provides a silver lining as the markets continue to grapple with the aftereffects.
Basis Point: 1/100th of 1 percent.
For the second meeting in a row, the Fed implemented a 25 basis point rate hike, bringing the new fed funds trading range to 4.75% - 5%. The question on everyone’s mind now is whether the Fed continues on their rate hike mission, or is a pause, or even a rate cut in the near future. During this week’s episode of the Basis Points podcast, Kevin Flanagan discusses the Fed’s attempt to thread the needle given this newfound level of uncertainty.
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Last week was eventful for the bond markets. During this week’s episode of the Basis Points podcast, Kevin Flanagan reviews the latest developments against the current backdrop.
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While inflation appears to have peaked last summer, unfortunately for the Fed, and by extension the bond market, the future road may not be as much of a one-way street to the downside as we saw during the autumn months. During this week's episode of the Basis Points podcast, Kevin Flanagan covers the latest Consumer Price Index data and explains why the Fed will continue to operate under the assumption it ‘has more work to do’ in fighting inflation.
Basis Point: 1/100th of 1 percent.
For the first six weeks of 2023, volatility in the money and bond markets took center stage, with a full year’s rally occurring in only about one month’s timeframe. However, over the past two weeks, UST yields have completely reversed course. During this week’s episode of the Basis Points podcast, Kevin Flanagan discusses the dramatic shift in the market’s narrative.
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What happens when the Fed raises rates by 450 basis points in under a year? The answer: inverted yield curves. This week on the Basis Points podcast, Kevin Flanagan discusses the two most closely watched yield curve gauges, what they mean and why they are important.
Basis Points: 1/100th of 1 percent.
After the January FOMC meeting, the U.S. Treasury (UST) market has now arrived at another milestone. UST floating rate notes are now the highest-yielding Treasury security at 4.85%. This week on the Basis Points podcast, Kevin Flanagan discusses where the markets could go from here, and how our Floating Rate Treasury Fund (USFR) offers investors a means of investing in this space.
Basis point: 1/100th of 1 percent.
At today’s FOMC meeting, the Federal Reserve downshifted its pace of rate hikes, this time lowering the “speed limit” to 25 basis points (bps), down from December’s 50 bps increase. This week on the Basis Points podcast, Kevin Flanagan outlines what this means for the economy and inflation and what to expect from the Fed going forward.
Basis point: 1/100th of 1 percent.
So far in 2023, the topic of a possible default has been a 'hot-button' topic. This week on the Basis Points podcast, Kevin Flanagan discusses high yield securities and highlights our U.S. High Yield Corporate Bond Fund (WFHY) as a potential solution.
Basis Points: 1/100th of 1 percent.
While the dual mantras of “don’t fight the Fed” and “don’t fight the tape” continue to battle it out, this week on the Basis Points podcast, Kevin Flanagan discusses one aspect of monetary policy decision-making that is getting short shrift: financial conditions. Listen now as Kevin covers the latest updates impacting the money and bond markets and contemplates timing for the next potential rate hike vs. rate cut.
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As we begin 2023, most economic and macro outlooks seem to all be on the same page. This week on the Basis Points podcast, Kevin Flanagan discusses how these outlooks might change given the current market backdrop.
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While the outcome of the December FOMC meeting did not offer any big surprises, the U.S. Treasury market’s response has left some feeling a little perplexed. During this week’s episode of the Basis Points podcast, Kevin Flanagan covers the market's response and what it means as we head into the new year.
Basis Point: 1/100th of 1 percent.
The Fed delivered another outsized rate hike at today’s FOMC meeting, but this time it was ‘only’ by 50 basis points. As a result, the Fed Funds trading range will end 2022 and begin the new year at 4.25%–4.50%. This week on the Basis Points podcast, Kevin Flanagan discusses what this means for the markets and what to expect from the Fed going into 2023.
Basis Point: 1/100th of 1 percent.
This week on the Basis Points podcast, Kevin Flanagan is joined by Chris Acito, CEO of Gapstow Capital Partners. Listen as they recap what went on in fixed income in 2022 and how 2023 might be different. This is the first in a series of episodes on this subject.
Basis Point: 1/100th of 1 percent.
In 2023, we expect to see a continuing theme of Fed-induced volatility. This week on the Basis Points podcast, Kevin Flanagan covers how investors can take advantage of ‘income being back in fixed income’ while potentially removing the heightened volatility quotient with a U.S. Treasury floating rate note strategy.
Basis Point: 1/100th of 1 percent.
With the money and bond markets preoccupied with inflation, the chance of a recession and Fed rate hikes, the state of the U.S. government’s finances has not received much attention. This week on the Basis Points podcast, Kevin Flanagan “pulls back the curtain” and provides some insights on this front.
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November has gotten off to an inauspicious start for the money and bond markets. Against this backdrop, during this week’s episode of the Basis Points podcast, Kevin Flanagan discusses the likelihood of Powell & Co. raising the terminal rate for Fed Funds to the 5% threshold.
Basis Point: 1/100th of 1 percent.
The Fed delivered another outsized rate increase at today’s FOMC meeting, raising interest rates again by 75 basis points to a new range of 3.75%–4%. This week on the Basis Points podcast, Kevin Flanagan outlines what this means for the markets and discusses what to expect from the Fed going into 2023.
Basis Point: 1/100th of 1 percent.
The Fed delivered another outsized rate increase at today’s FOMC meeting, raising interest rates again by 75 basis points to a new range of 3.75%–4%. This week on the Basis Points podcast, Kevin Flanagan outlines what this means for the markets and discusses what to expect from the Fed going into 2023.
Basis Point: 1/100th of 1 percent.
This week on the Basis Points podcast, Kevin Flanagan is joined by Morgan Stanley’s Global Head of Macro Strategy, Matthew Hornbach. During the episode, they cover the impacts of the rising 31 trillion-dollar national debt, possible outcomes for the next Fed meeting and key economic indicators for inflation, including: rate hikes, labor markets, U.S. Treasury Yields and more.
Basis Point: 1/100th of a percent.
This week on the Basis Points podcast, Kevin Flanagan discusses the Fed's inflation fighting strategy and the chatter about a “pivot” shifts gears as the hotter-than-expected September CPI report effectively eliminates the possibility of a Powell pivot in the near future.
Given the evolving regulatory environment, this week on the Basis Points podcast, Kevin Flanagan explores the related risks and trends against a volatile market backdrop.
Basis Point: 1/100th of 1 percent.
Given the evolving regulatory environment, this week on the Basis Points podcast, Kevin Flanagan explores the related risks and trends against a volatile market backdrop.
Basis Point: 1/100th of 1 percent.
This week on the Basis Points podcast, Kevin Flanagan takes listeners down memory lane to define the framework of a recession and how it compares with where the US economy has been, where it is and where we believe it might be headed.
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This week on the Basis Points podcast, Kevin Flanagan is joined by WisdomTree thought leaders Jeff Weniger, Nitesh Shah and Aneeka Gupta to cover a compelling blend of global research and analysis regarding the recent dramatic shift in monetary policy by just about every central bank in the developed world, including:
- The latest economic and investing developments in emerging and developed markets.
- A macroeconomic outlook.
- Market preparedness and engagement.
Basis Point: 1/100th of 1 percent.
At today’s FOMC meeting, the Fed raised the Fed Funds target by 75 basis points. This week on the Basis Points podcast, Kevin Flanagan discusses the driving factors behind this decision and what we might expect from the Fed in the future.
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This week on the Basis Points podcast, Kevin Flanagan recaps the Fed’s latest messaging on inflation and rising rates, their impact on the money and bond markets and turns to the latest jobs report for answers.
We’ll say it again, there is income back in fixed income! This week on the Basis Points podcast, Kevin Flanagan reviews developments in the high yield market. And he focuses in on how considering a quality screen in your allocation approach could be beneficial.
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High Yield Market Cap is proxied by the Bloomberg Barclays U.S. Corporate High Yield Index.
The benchmark Agg is the U.S. Aggregate Bond Index.
Will the Fed hold‘em, fold‘em or stay? This week on the Basis Points podcast, Kevin Flanagan weighs in on the latest debate in the money and bond markets, and contemplates the future landscape regarding interest rate hikes. During the episode, Kevin deals out notable perspectives and possible approaches to consider under the current environment and discusses shorter duration profiles in a fixed income portfolio to help mitigate risk against the current backdrop. Listen now to find out whether we think the Fed is bluffing.
This week on the Basis Points podcast, Kevin Flanagan provides perspective on the latest labor market data as policy officials continue pushing back against the recession narrative and gear up for the Jackson Hole Conference taking place later this month.
What a week for the money and bond markets. This week on the Basis Points podcast, Kevin Flanagan continues his discussion on the sticky topic of inflation and breaks down the impact of the latest monetary policies on bond yields as it relates to the volatile market backdrop. Listen now to learn more about potential solutions for positioning your fixed income portfolio today.
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At this week’s FOMC meeting, the Fed made history with another 75-point rate hike. This week on the Basis Points podcast, Kevin Flanagan discusses how the latest regulatory updates and developments affect the Fixed Income sector to help equip investors and advisors as talks of a possible recession continue.
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What type of rate hike are we going to see at next week's July FOMC meeting? This week on the Basis Points podcast, Kevin Flanagan weighs in on the buzz around recession talk and what the yield curve could look like in the near term.
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Is income coming back into Fixed Income? This week on the Basis Points podcast, Kevin Flanagan discusses how the dynamic duo of inflation and fed policy are affecting the Fixed Income landscape and how it might be something to consider as recession chatter continues.
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Yield to worst: The rate of return generated assuming a bond is redeemed by the issuer on the least desirable date for the investor.
Are the markets looking for recession clues in the right or the wrong places? This week on the Basis Points podcast, Kevin Flanagan discusses the leading economic indicators of a recession, as well as where investors and advisors can turn to for a silver lining.
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The first half of 2022 is now in the books, and the Treasury 10-year yield continues to make headlines in the bond market. This week on the Basis Points podcast, Kevin Flanagan covers where the treasury yield might be headed next to help investors feel updated and informed on the latest market updates and developments.
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Fibonacci retracement: A technical analysis tool displaying percentage lines which look at support and resistance levels, potentially signaling short-term price/yield reversals. The concept of retracement suggests that after a period of market movement, prices/yields can retrace a portion of their prior pattern before returning to their original trend.
All eyes on today’s Fed decision – now what? This week on the Basis Points podcast, Kevin Flanagan covers the impact of this week’s FOMC meeting announcement to raise interest rates by 75 basis points, for the first time since 1994, and what that means for the money and bond markets.
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As market uncertainty persists, investors and advisors are left to wonder what’s next? This week on the Basis Points podcast, Kevin Flanagan leads a discussion with Morgan Stanley’s Global Head of Macro Strategy, Matthew Hornbach to discuss their key takeaways from the first half of 2022 and the many forces set to impact the road ahead.
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With the mix of high inflation and rising interest rates, should investors and advisors consider repositioning their bond portfolios? This week on the Basis Points podcast, Kevin Flanagan delivers timely and actionable ideas to help investors and advisors navigate ever-changing market conditions including the use of WisdomTree’s Barbell strategy as a helpful tool that aims to provide investors with a core strategic solution.
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With rates up and bond prices down, is there room for potential opportunity in the alternative credit sector? This week on the Basis Points podcast, Kevin Flanagan speaks with Chris Acito, Chief Executive Officer of Gapstow to discuss the impact of rising rates on traditional fixed income investments, alternative credit and more.
To learn more about the standardized performance of the WisdomTree Alternative Income Fund (HYIN) please visit: https://www.wisdomtree.com/etfs/alternative/hyin
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Has the sell-off in bond markets taken its course? This week on the Basis Points podcast, Kevin Flanagan covers the Fed potentially raising rates two if not three more times between now and year-end and what that means for fixed income investors.
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At today’s Fed meeting, for the first time since May 2000, the Fed announced a 50 point rate hike. This week on the Basis Points podcast, Kevin Flanagan discusses the impact of the meeting results on the fixed income markets going forward.
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This week on the Basis Points podcast, Kevin Flanagan is joined by George Goncalves, Head of U.S. Macro Strategy at MUFG Securities. They discuss global interest rates, possible outcomes for the next Fed meeting, and the impact of Quantitative Tightening.
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This week on the Basis Points podcast, Kevin Flanagan is joined by Roberto Perli, Head of Global Policy at Piper Sandler and former senior staff member at the Fed to provide insights on what might be on the policymakers’ minds when it comes to rate hikes as inflation continues to run hot.
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What is all the buzz about a potential economic recession? This week on the Basis Points podcast, Kevin Flanagan discusses inverted treasury yields, while interest rates continue their journey higher, and what that means as talks of a possible recession start to heat up.
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This week on the Basis Points podcast, Kevin Flanagan discusses a few key takeaways following the March FOMC meeting, focusing on where we believe treasury yields are headed.
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Now that the first hike has been announced, Kevin Flanagan discusses what the rate hike cycle looks like going forward. And up until Russia's invasion of Ukraine, it appeared as if this rate hike episode would be kind of straightforward.
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This week on the Basis Points podcast, Kevin Flanagan lays out the runway for next week’s fed meeting while analyzing the latest on the employment sector as we anticipate our policymakers will act as a catalyst for slower growth.
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This week on the Basis Points podcast, Kevin Flanagan takes a trip down memory lane as he examines the yield curve and poses the question, what will the Fed do as this tightening cycle progresses amidst, among other things, the highest inflation setting in 40 years? Listen in as Kevin shares his insights on the unique backdrop the Fed faces leading up to the first rate hike announcement since 2018, including the uncertainty of a Ukraine-Russia conflict.
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With several Fed interest rate hikes expected to begin as early as March, this week on the Basis Points podcast, Kevin Flanagan discusses what history has to show amid rising rates while preparing for ‘lift-off.’
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This week on the Basis Points podcast, Kevin Flanagan speaks with Gapstow Chief Executive Officer, Chris Acito to discuss the impact of rising rates on traditional fixed income investments as well as potential opportunities in the alternative credit sector.
To learn more about the standardized performance of the WisdomTree Alternative Income Fund (HYIN) please visit: www.wisdomtree.com/etfs/alternative/hyin
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Is the Treasury market at risk of losing support from the Fed and global investors? This week on the Basis Points podcast, Kevin Flanagan covers the latest global market trends: higher yields, the impact that the sovereign debt yields could have on the U.S. bond market and preparing one’s portfolio for what’s next.
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European Central Bank (ECB): the central bank responsible for monetary policy of those European Union (EU) member countries which have adopted the euro currency.
Italy Government Bond 10-Year: Generally, a government bond is issued by a national government and is denominated in the country`s own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The yield required by investors to loan funds to governments reflects inflation expectations and the likelihood that the debt will be repaid.
Japanese government bonds (JGBs): bonds issued by the Japanese government and have become a key part of the country's central bank efforts to boost inflation. There are three key types of JGBs—general bonds, Fiscal Investment and Loan Program bonds, and subsidy bonds.
With the money and bond markets still buzzing following Chairman Powell’s ‘hawkish’ show, this week on the Basis Points podcast, Kevin Flanagan shares his outlook while discussing the number of potential rate hikes and where the Fed funds’ target range will land given the current state of the sovereign debt markets.
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This week on the Basis Points podcast, Kevin Flanagan discusses a few key takeaways following the latest Fed meeting, including signals that rate hikes could occur at any future FOMC meetings, moving Kevin’s focus back to the balance sheet and now, it’s all about timing as policymakers work to shrink their balance sheet.
Is it more than a rebalancing act? This week on the Basis Points podcast, Kevin Flanagan focuses on the Fed balance sheet while discussing the rate hike cycles and what is to come for the money and bond markets.
This week on the Basis Points podcast, Kevin Flanagan discusses the more hawkish tilt coming out of the recent Fed meeting and what affect that has on the money and bond markets.
This week on the Basis Points podcast, Kevin Flanagan discusses three rate-hedging investment resolutions for 2022’s rising rates and inflationary environment to ring in the new year.
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This week on the Basis Points podcast, Kevin Flanagan discusses the final FOMC meeting for 2021 and it’s beginning to look a lot like rate hikes may be coming from the Fed next year. Where does that leave fixed income investors for 2022? Tune-in now to hear more.
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This week on the Basis Points podcast, Kevin Flanagan discusses the swaying focus for the money and bond markets on the Fed, inflation and labor market due to recent headlines following the discovery of the new Omicron variant of the coronavirus.
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This week on the Basis Points podcast, Kevin Flanagan talks about the reappointment of Federal Reserve Chairman Jay Powell and the rate outlook in the fixed income space following the Treasury’s initial market response. In other words, Fibonacci’s technical analysis.
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Is the Fed in for a sticky situation? This week on the Basis Points podcast, Kevin Flanagan discusses what ‘transitory’ means specifically related to inflation, bond markets and more before gearing up to take a seat at the holiday table.
This week on the BasisPoints podcast, Kevin Flanagan reflects on the latest Fed meeting as they commence ‘phase two’ of their exit strategy. Tune-in to hear Kevin discuss a wide-range of hot topics including the Fed's plan for a fast taper, rate hikes and more while forecasting its potential market impacts.
With Halloween just a few days away, Kevin Flanagan wonders if the bond market is going to be giving out tricks or treats this year. This week on the Basis Points podcast, it looks like things are getting spooky for treasury yields all across the coupon curve, as it brought absolute levels, in some cases, back to where they were pre-pandemic.
Basis Points: 1/100th of 1 percent.
This week on the Basis Point’s Podcast, Kevin Flanagan takes a trip down memory lane as he remembers the Five-and-Dime stores while discussing the recent action that’s been occurring in the treasury markets, specifically in the 5 and 10-year sectors.
Basis Points: 1/100th of 1 percent.
Is your bond portfolio prepared for the possibility that this time the increase in rates is for real? On this week’s episode of the Basis Points podcast, Kevin Flanagan revisits one of the main themes for fixed income – considering a rate hedge strategy for bond portfolios.
Distributor: Foreside Fund Services, LLC.
Basis Points: 1/100th of 1 percent.
On this week’s episode of the Basis Points podcast, Kevin Flanagan is joined by Mike Barrer, WisdomTree’s Director of Capital Markets, to answer your questions about Fixed Income ETFs. They discuss Mike’s upcoming WisdomTree blog about trading in fixed income ETFs and how they performed at the height of the COVID-19 pandemic in March 2020.
Basis Points: 1/100th of 1 percent.
Bid–ask spread: the difference between the prices quoted for an immediate sale and an immediate purchase for stocks, futures contracts, options, or currency pairs.
Premium discount: a volume discount applied to premiums that acknowledges the administrative cost savings associated with larger premiums.
On this week’s episode of the Basis Point’s podcast, Kevin Flanagan is joined by Jeff Dutra from Voya Financial to discuss the WisdomTree Mortgage Plus Bond Fund (MTGP). The WisdomTree Mortgage Plus Bond Fund operates as an actively managed exchange-traded fund that seeks income and capital appreciation through investments in mortgage-related debt and other securitized debt.
Basis Points: 1/100th of 1 percent.
Distributor: Foreside Fund Services LLC
Another FOMC meeting is in the books as policymakers completed their September convocation, and for those keeping track, that leaves two more Fed meetings this calendar year. On this week’s episode of the Basis Point’s podcast, Kevin Flanagan reveals key insights about FOMC’s possible exit strategy, rate hikes, shifting economic projections, and more.
After a great weekend of enjoying the start of 2021’s football season, Kevin Flanagan uses the sport as an analogy for bonds and fixed income investing. On this week’s episode of the Basis Points podcast, Kevin compares protecting the quarterback on the football field to safeguarding your bond portfolio from rising rates.
Basis Points: 1/100th of 1 percent. Duration: A measure of a bond’s sensitivity to changes in interest rates. The weighted average accounts for the various durations of the bonds purchased as well as the proportion of the total government bond portfolio that they make up.
After looking at the August jobs report, Kevin Flanagan can’t help but feel a bit of déjà vu. On this week’s episode of the Basis Points podcast, Kevin compares the findings in the latest jobs report to the consensus forecast and draws comparisons between the inconsistencies between the forecast and outcomes of April’s jobs report.
Basis point: 1/100th of 1 percent.
One of the most anticipated events of the year for the financial markets is behind us and Kevin Flanagan weighs in on the takeaways. On this week’s episode of the Basis Points Podcast, Kevin looks back on last week’s Jackson Hole speech from Federal Reserve Chairman, Jay Powell.
Another jobs report in the books and things are getting a bit more interesting for the Fed. On this week’s Basis Points Podcast, Kevin Flanagan wonders if the heat is beginning to get turned up on Federal Reserve Chairman Powell.
Basis point: 1/100th of 1 percent.
Federal Reserve Chairman Jerome Powell reiterated his stance that the recent spike in inflation is only transitory – so where does this leave fixed income investors? On this week’s Basis Points Podcast, Kevin Flanagan explores two overarching themes for the second half of this year and into 2022.
On this week’s episode of the Basis Point’s podcast, Kevin Flanagan discusses a variety of reasons for the recent drop in the Treasury 10-year yield.
Basis point: 1/100th of 1 percent.
On this week’s episode of the Basis Point’s podcast, Kevin Flanagan reflects on the first half of the year and provides an outlook on the market and economy as we continue into the second half of 2021.
Basis point: 1/100th of 1 percent.
On this week’s episode of the Basis Point’s podcast, Kevin Flanagan discusses whether investors should be considering Federal Reserve (“Fed”) exit strategy protection for their fixed income portfolio and potential portfolio shifts to consider so there aren’t any Fed surprises lurking out there.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Returns less than one year are not annualized. Visit www.wisdomtree.com/etfs/fixed-income/usfr for the most recent month-end and standardized performance.
Basis point: 1/100th of 1 percent.
On this week’s episode of the Basis Point’s podcast, Kevin Flanagan wonders if liftoff could be pushed up again by the Fed. He further discusses his main takeaways from the Fed meeting and the market’s outlook for the next year.
On this week’s episode of the Basis Point’s podcast, Kevin Flanagan “connects the dots” from yesterday’s Fed meeting. He discusses his main takeaways from the meeting and the Fed’s possible exit strategy from their unprecedented accommodation.
Another week of lower than expected jobs report numbers and Fed Chair Powell breathes a sigh of relief. On this week’s episode, Kevin Flanagan discusses the significance of the buzz around inflation and the impact that may have on upcoming Fed decisions.
Investors received an interesting surprise with discussion of “tapering” in the April FOMC minutes. On this week’s podcast, Kevin Flanagan discusses who is beginning to hint at tapering, who might be next, and what we can expect at the next meeting.
The release of April’s CPI and PPI reports caused a stir in the money and bond markets last week. On this week’s episode, Kevin Flanagan continues his discussion on inflation and addresses the state of the consumer sector of the economy.
On this week’s podcast, Kevin Flanagan is joined by Chris Acito, Chief Executive Officer and Chief Investment Officer of Gapstow Capital Partners. They discuss Alternative Credit, why the time might be right for it, and the newly launched ETF, the WisdomTree Alternative Income Fund (HYIN).
Underlying risk disclosure: Less mature and smaller private companies involve greater risk than well-established and larger publicly traded companies. Investing in debt involves risk that the issuer may default on its payments or declare bankruptcy and debt may not be rated by a credit rating agency.
Digging deeper into the investment opportunities in the Emerging Markets space, Kevin Flanagan and JD Bütikofer of Voya Investment Management discuss why Emerging Markets Corporate Bonds and why now.
At today’s Fed meeting the FOMC members voted to continue a zero- interest rate policy and keep their quantitative ease purchases on auto-pilot. On this week’s podcast, Kevin Flanagan discusses of keeping policy “the same as it ever was” on the fixed income market.
The momentum appears to be in place for continued robust economic recovery for the remainder of 2021. On this week’s podcast, Kevin Flanagan highlights this recovery with a breakdown of the latest economic numbers.
The absolute level of rates remains historically low, which leaves investors searching for yield. Kevin Flanagan explains why investors searching for income should consider complementing their fixed income portfolio with an emerging markets corporate debt strategy.
The first quarter of 2021 is now in the books, and the rising Treasury 10-Year yield continues to make headlines in the bond market. On this week’s podcast, Kevin Flanagan seeks to answer the question on many investors’ minds: Where is it headed next?
Can Treasury yields rise even if the Federal Reserve doesn’t raise rates? The 2021 experience has shown investors that they certainly can. Kevin Flanagan discusses.
On this week’s podcast Kevin Flanagan discusses the rise in the UST 10-year yield and what this could potentially mean for the bond market.
One of the biggest stories in bond-land thus far in 2021 has been the spike in the U.S. Treasury 10-year yield. On this week’s podcast, Kevin Flanagan discusses one element that has been overlooked: the size of Treasury auctions.
Last week’s spike in the U.S. Treasury 10-year yield was a not-so-subtle reminder that rate-hedging remains an active consideration for the bond market investment landscape. On this week’s podcast, Kevin Flanagan discusses potential solutions for investors seeking to apply rate-hedged strategies within their fixed income portfolio.
Inflation expectations have been noticeably on the rise thus far in 2021. On this week’s podcast, Kevin Flanagan is joined by Scott Welch, WisdomTree’s Chief Investment Officer, Model Portfolios, to discuss one potential approach for preparing for inflation: commodities.
Interest rates around the globe are either outright negative, or in the case of the U.S., they remain at historically low levels. On this week’s podcast, Kevin Flanagan discusses how investors can search for yield in the current market environment.
Not all market participants are convinced yet that inflation might make a comeback, but don’t tell that to the bond market. On this week's podcast, Kevin Flanagan explains why fixed income investors should consider preparing their portfolios for a by-product of inflation: higher interest rates.
Given the unfortunate second wave of the COVID-19 pandemic, it’s easy to focus solely on what the negative impact could potentially mean for the U.S. economy. However, on this week’s podcast, Kevin Flanagan discusses one sector of the U.S. economy that has been able to outperform expectations: manufacturing.
With monetary policy seemingly on autopilot, fixed income investors have instead placed their focus on fiscal policy. On this week’s podcast, Kevin Flanagan discusses how the Fed has now taken a backseat in bond-land from an official policy perspective.
Following last week’s movements of the U.S. 10-Year Treasury yield, the ‘Reflation Trade’ theme has taken center stage in bond-land. Against this backdrop, Kevin Flanagan provides potential solutions for investors to consider for their fixed income portfolios.
Is there potential for the UST 10-Year yield to move higher? On this week’s podcast, Kevin Flanagan discusses this possibility along with the possible return of the reflation trade.
We believe there will be three key themes for fixed income investors to focus on in the new year. On this week’s podcast, Kevin Flanagan discusses these themes and potential solutions for them in the fixed income universe.
With the final FOMC meeting for this year now in the books, Kevin Flanagan shifts attention to what 2021 could bring from the Fed.
The final jobs report of 2020 was released last week. On this week’s podcast, Kevin Flanagan explains that while the actual data was not outright “bad,” he believes the November employment report falls into the category that some negative signs are beginning to emerge.
With the second wave of COVID-19 dominating headlines again, it’s natural to wonder what the economic impact may be this time around as compared to Q2. On this week’s podcast, Kevin Flanagan takes a step back to see where the economy stands as we enter the final month of 2020.
While we believe there is potential for the 10-year Treasury yields to move higher, it will still remain low from a historical perspective. Against this backdrop, Kevin Flanagan provides bond investors with a solution to seek for income without incurring too much risk.
On this week’s podcast, Kevin Flanagan, WisdomTree’s Head of Fixed Income Strategy, gets back to market fundamentals and discusses the latest economic data from the October jobs report.
With Election Day over, there’s another force in Washington, DC, to be ever mindful of in bond land: the Federal Reserve. On this week’s podcast, Kevin Flanagan discusses monetary policy, the one common denominator regardless of the election outcome.
The pandemic and related economic shutdowns required unprecedented fiscal action, but even before 2020, expanding U.S. budget deficits had become the norm. With fiscal year 2020 now officially in the books, Kevin Flanagan discusses how things fared.
One potential outcome following the upcoming election is a “blue wave,” which could lead to slowed economic growth. On this week’s podcast, Kevin Flanagan explains how fixed income investors can prepare for such an outcome.
One potential outcome of the 2020 Election is a Democrat sweep, or the “blue wave,” whereby the presidency and both houses of Congress would be controlled by the Democratic Party. On this week’s podcast, Kevin Flanagan provides a solution for investors seeking to prepare their fixed income portfolio for the possibility of the “blue wave.”
Last Friday was the final jobs report before the 2020 election. On this week’s podcast, Kevin Flanagan provides fixed income investors with a quick rundown of the key takeaways from the report.
While March seems like a long time ago, the repercussions of perhaps the worst two-week period in the U.S. high-yield (HY) arena is now showing through some five to six months later. Despite this, Kevin Flanagan makes the case there is relative value in the U.S. HY market, as long as you screen for quality.
After the end of 2019, the U.S. economy went straight into negative territory, as the pandemic-related shutdowns produced unprecedented contractions in activity. Most market participants have been of the mindset that the economy would not return to pre-pandemic levels until the end of 2021. On this week’s podcast, Kevin Flanagan discusses whether the economy can recover sooner than expected.
The Federal Reserve released its new policy framework late last month in connection with Chair Powell’s Jackson Hole speech, so, unsurprisingly, the September FOMC meeting did not generate any fresh headlines. But there is one key question following today’s Fed meeting that Kevin Flanagan seeks to answer: how will the Fed actually implement this new approach?
The headlines surrounding the August Employment Situation report seemed to focus on the moderating pace of new hiring activity. On this week’s podcast, Kevin Flanagan explains why he believes the more notable story was the sizeable drop in the unemployment rate and the impact on the fixed income market.
At last week’s Jackson Hole conference, Chairman Powell announced a noteworthy shift in how monetary policy is now going to be delivered. On this week’s podcast, Kevin Flanagan explains the Fed’s decision to let the economy run “hot, hot, hot” to achieve its average inflation goal over time.
Chairman Powell is scheduled to take center stage at the annual Jackson Hole conference. The focus will be on what, if any, adjustments can be expected with respect to inflation targets and the Fed’s balance sheet. Kevin Flanagan discusses the possible outcomes on this week’s podcast.
As we continue to be bombarded with headlines and news stories on a 24-7 basis, sometimes it is difficult to know what to focus on in terms of economic numbers. On this week’s podcast, Kevin Flanagan discusses which reports investors should look to as economic indicators in the current investment landscape.
As we enter mid-August and the end of summer, Kevin Flanagan takes a step back and provides an analysis on the current state of affairs in the fixed income arena.
When the pandemic began to shut down global economies earlier this year, there were dire forecasts for what it would mean for economic activity. Unfortunately, the prognostications proved to be accurate, and Q2 produced record-breaking contractions in GDP in both the U.S. and eurozone. On this week’s podcast, Kevin Flanagan attempts to answer the natural question: What comes next?
The Federal Reserve’s current easing cycle began exactly a year ago. One year later, there is a zero interest rate policy with a revamped quantitative easing policy to ward off another potential financial crisis. On this week’s podcast, Kevin Flanagan explains why, against this backdrop, it should come as no surprise the Fed decided to take a bit of a summer vacation at this July FOMC gathering.
The focus of money and bond markets has been on the 3-month LIBOR–OIS spread. On this week's podcast, Kevin Flanagan discusses the latest moves in the fixed income space and why we may not be out of the woods yet.
The economy is two for two in terms of a better-than-expected U.S. jobs reports. Just like last month, the June numbers exceeded expectations. Kevin Flanagan discusses.
When following rate trends here in the U.S., it’s easy to focus only on domestic factors. On this week’s podcast, Kevin Flanagan discusses some interesting developments overseas that have been largely ignored in market commentary, encouraging investors to start thinking globally.
While an interest rate-hedging angle for bond portfolio is not top of mind for investors right now, maybe it should be. On this week’s podcast, Kevin Flanagan explains why the time to consider rate protection is when rates are low.
As investors sort through the aftermath of the recent bond market turmoil, there have been questions around potential value and income opportunities in the fixed income space. On this week’s podcast, Kevin Flanagan explains why he has high hopes for the U.S. high-yield corporate bond sector.
It came as no surprise that the Federal Reserve left monetary policy right where it is at the June FOMC meeting. Kevin Flanagan discusses how fixed income investors should position their portfolios.
There has been an increasing amount of chatter regarding whether the Federal Reserve would consider pushing the Fed Funds rate into negative territory. On this week’s podcast, Kevin Flanagan discusses this possibility and its impact on the economy.
So far in 2020, fixed income ETF inflows have been greater than flows into U.S. equities, commodities or currency. On this week’s podcast, Kevin Flanagan discusses this noteworthy feat.
All eyes were on Friday’s jobs report to see just how bad it really was. As expected, it was bad, the worst report of our lifetime, as a matter of fact. On this week’s podcast, Kevin Flanagan provides a quick rundown of the numbers and outlines what to expect next.
Recently, it has been argued the Fed’s balance sheet altered the historical relationship between inverted yield curves and recessions. Given the Fed’s recent quantitative easing program, Kevin Flanagan makes the argument that the curve’s predictive value may have been permanently altered.
Unlike other Federal Reserve related news since the beginning of March, the April FOMC meeting did not provide any groundbreaking headlines. That being said, the Fed continued to make it abundantly clear they stand “at the ready,” should the need arise. Kevin Flanagan discusses.
With the alphabet soup of facilities that have all been announced by the Fed over the last month, Kevin Flanagan narrows down the scope and focuses in on the programs that involve the financial markets more directly. In other words, the Fed is going bond buying.
Over the last month, the combination of U.S. monetary and fiscal support has not only come at breakneck speed, but perhaps more importantly, at almost unimaginable amounts just a few months ago. On this week’s podcast, Kevin Flanagan provides a solution for fixed income investors that might be feeling a bit dazed and confused.
Recently, the overarching question for fixed income investors has been whether current valuations represent a renewed buying opportunity for the U.S. investment-grade and high-yield corporate arena. On this week’s podcast, Kevin Flanagan answers the more pertinent query: what’s in the price?
Both the Fed and the U.S. federal government provided unprecedented responses to the market turmoil last week. The natural question on investors’ minds is whether the time has come to begin positioning their fixed income portfolios for what comes next. On this week’s podcast, Kevin Flanagan explains why one of the most noteworthy items to consider is your interest rate profile.
The current money and bond market environment has afforded investors the opportunity to review their fixed income asset allocations. So, what are fixed income investors to do? Kevin Flanagan discusses.
The Fed has responded yet again, but this time around, the policy makers made sure their message was heard loud and clear around the globe. Kevin Flanagan discusses.
What if a U.S. jobs report came out and nobody cared? This is the case in the current investment universe that we are now confronted with. In what normally would have been considered a bond-market unfriendly number, it ultimately didn’t matter. Kevin Flanagan discusses.
In this week’s podcast, Kevin Flanagan provides another update on the coronavirus from a bond market perspective.
Looking at the U.S. Treasury market’s reaction to the coronavirus news, there was one by-product that captured the lion’s share of the headlines: the yield curve inverts again! Kevin Flanagan discusses what this recent inversion means for the fixed income market.
With impeachment and State of the Union fireworks receding in the background, a fixed income strategist’s dream would be to return the focus to the normal course of business that emanates out of Washington, D.C. In this week’s podcast, Kevin Flanagan discusses the latest economic data, breaking down the 2020 January jobs report.
This year has gotten off to an unusual start in the financial markets. Typically, the focus would be on the Fed and/or economic developments, but unfortunately the coronavirus has taken center stage. In this week’s podcast, Kevin Flanagan offers insights from a bond market perspective, using the SARS outbreak of November 2002 to July 2003 as a comparative event.
Many investors have been wondering about recent downgrade trends in the U.S. investment grade space. Kevin Flanagan discusses.
There are many factors that investors consider when looking for forward guidance on global interest rate trends. In this week’s podcast, Kevin Flanagan discusses why the German bund market is one factor investors should keep their eye on over the next few months.
Last Friday marked the first ‘real’ data day for the bond market with the release of the final jobs report for 2019. In this week’s podcast, Kevin Flanagan discusses how the December 2019 jobs report falls right in line with our 2020 outlook for the U.S. economy.
The end of December brings “the turn” to fixed income investors’ minds. “The turn” represents the period around the final business day of the calendar year when banks need to address their cash needs to get through this crucial funding period. Kevin Flanagan discusses how the Fed will handle year-end funding pressures.
After three consecutive rate cuts, the Fed decided to stay on the sidelines at their final gathering for 2019. Kevin Flanagan discusses the results of today’s FOMC meeting and what fixed income investors should expect from 2020.
Should U.S. Treasury yields be this low, given the current investment landscape? In this week’s podcast, Kevin Flanagan discusses why he believes investors should follow the old adage “Don’t fight the tape.”
While generally 2019 thus far has been a year of falling rates, going forward, the path seems less certain for a host of reasons. Kevin Flanagan discusses.
What a difference a month makes in bond-land. Just when investors thought U.S. Treasury yields were on the verge of moving even lower, a rather visible sell-off ensues. What could have caused such a shift in sentiment? Kevin Flanagan discusses.
With yield curves inverting, trade wars heating up, data on manufacturing softening and the ultimate Federal Reserve change in monetary policy resulting in three rate cuts all occurring simultaneously, it was hard not to succumb to recession fears. The good news is that it looks like the worst of the recession fears may have passed. Kevin Flanagan discusses.
As widely expected, the Federal Reserve once again voted to cut rates at its October FOMC meeting, the third time in 2019. The question that now comes to mind is whether the third time’s a charm. Kevin Flanagan discusses.
Without much fanfare, an interesting development has occurred in the bond market thus far in October: The Treasury yield curve ‘un-inverted’. Does this flash the ‘all clear’ signal for the U.S. economy? Kevin Flanagan discusses.
Reports on inflation have essentially been ‘stealth-like’ and garnered little to no attention. Throughout most of 2019, inflation has had no reason to grab the headlines, should investors be concerned about whether the price is right? Kevin Flanagan discusses.
Before the release of last week’s jobs report, investors were inundated with headlines seemingly suggesting that it wasn’t a matter of ‘if’, but ‘when’ would the U.S. economy enter into a recession. However, there are some economic numbers that imply there is no clear and present danger of a contraction. Kevin Flanagan discusses.
In an interesting turn of events, the big news in Fixed Income has not been the recent rate cut. Instead, the dislocations that were witnessed in the funding markets, and attendant Fed responses, seemed to take center stage. Kevin Flanagan discusses.
As was widely expected, the FOMC voted to reduce the Federal Funds target range by another quarter point following its September policy meeting. Kevin Flanagan discusses whether another cut in December is likely.
The 50th anniversary of the original Woodstock has come and gone, but the August jobs report contained a trend not seen since 1969. Kevin Flanagan discusses.
The calendar has now turned to September, and that means another FOMC meeting is on tap with the results slated for announcement on September 18th. Based on “Fedspeak” surrounding the recent Jackson Hole conference, it appears as if there is some division among the policy makers on what the next step will be. Kevin Flanagan discusses.
The rally in the U.S. Treasury market has created a rather interesting investment backdrop. Recent market events have left investors with some important decisions to make in their fixed income portfolios. Kevin Flanagan discusses.
The last two weeks in the “bond land” have been extraordinary. Kevin Flanagan discusses his perspective on the latest inverted yield curve hysteria.
The tumultuous market events to kick off August have served as a not so subtle reminder that volatility appears here to stay. Certainly, the recent trend has been for rates to be on a descending trajectory, but what if headlines or tweets change course? Kevin Flanagan discusses.
What a week last week was! From the Federal Reserve to President Trump’s tweet stating that more tariffs on China are potentially coming to Friday’s jobs report, Kevin Flanagan breaks it all down.
The Fed has done what was widely expected−it cut the federal funds target range by a quarter-point. And while you could say the Fed is back in data-dependent mode, it appears as if monetary policy is still leaning toward another rate cut this year. Kevin Flanagan discusses.
Through the first six months of the year, the global fixed income markets have certainly put in a surprising performance. However, the odds do not seem to favor this type of performance in 2H 2019. Against this backdrop, Kevin Flanagan offers three solutions for investors to consider as we close out 2019.
One overarching question that many investors ask is, Why is the Fed so intent on cutting rates? If judging solely on low unemployment and an impressive June jobs report, many wouldn’t think we should be having a rate-cut discussion. Kevin Flanagan explains why a July rate cut is still likely.
The much better-than-expected June jobs report has the money and bond markets—and probably the Federal Reserve as well—in a dither. Kevin Flanagan analyzes the data to bring you back to a post-July 4 reality!
When looking at the money and bond markets, they almost seem to be saying to the Federal Reserve (Fed), “Would you please cut rates already?” Against this backdrop, we continue to advocate for a solution designed to help fixed income investors navigate the waters that loom ahead without making a high conviction bet on where rates are headed: the barbell strategy.
After a Federal Reserve meeting like the one last week, it’s always prudent to take a step back and let the dust settle. Kevin Flanagan analyzes the U.S. Treasury (UST) 10-Year yield and poses the question: Where do we go from here?
To watch the money and bond markets of late, there is one development that stands out quite clearly: the Federal Reserve has to cut interest rates. Kevin Flanagan explains why the markets think trade uncertainty plus economic weakness might just equal three rate cuts in the future.
Last week, we heard a narrative regarding the movement in the stock and bond markets—specifically, that the decline in U.S. equities resulted from the drop in the U.S. Treasury 10-Year yield. Typically, the bond market reacts to developments in the stock market, not the other way around. Kevin Flanagan investigates a possible shift in the paradigm.
The current landscape for the fixed income arena can be defined by two key factors: the yield curve and household cash positions. These two forces have placed a premium on short-term government investments in bond-land. Instead of going into products that are fixed in nature, Kevin Flanagan examines why investors should look to floating rate strategies instead.
It’s time for your final in “Curve”ology 101. Does the UST 3-Month/10-Year curve signal an upcoming recession? Kevin Flanagan explains.
While the money and bond markets continue to debate when, not if, the first rate cut is coming, the Fed has already taken its foot off the brake in a rather visible fashion. Kevin Flanagan explains why the U.S. economy should no longer be confronted by Fed headwinds.
It’s hard to say where interest rates are headed in this uncertain landscape. Kevin Flanagan offers fixed income investors a strategic solution designed to help navigate the choppy waters that could potentially loom ahead without making a “high-conviction bet” on where rates are headed.
Certainly, no one can dispute that the shift in the Federal Reserve’s (Fed) monetary policy outlook has been the most noteworthy development that has occurred in the money and bond markets thus far in 2019. So, while the debate for 2019 and 2020 seems to have gravitated to when the Fed will actually cut rates, I offer a different take. What if the FOMC goes on a “policy sabbatical” of sorts, and just leaves well enough alone?
With another April 15 tax date come and gone, Kevin Flanagan asks: How did individual filers make out for the 2019 season versus a year ago?
If bond investors have learned anything this year, it is that the “winds of change” can blow in dramatically different directions regarding monetary policy. Kevin Flanagan discusses how market sentiment has shifted from where we were only four months ago.
It’s all about the data, with the jobs report being front and center. But what happens when the data doesn’t fit into the Treasury market’s narrative? Kevin Flanagan discusses.
After the March Fed meeting, no more rate hikes appeared to be in the offing for 2019, so naturally, the only place to go from there would be rate cuts. Kevin Flanagan analyzes the Treasury yields that look more like the Fed already cut rates but forgot to tell anyone.
The U.S. Treasury yield curve went inverted last week for the 1st time since 2007. Certainly, it is a noteworthy development in bond-land. Kevin Flanagan provides some quick insights on what this means for your fixed income portfolio.
Is the Federal Reserve leaving March by “going out like a lamb?” Kevin Flanagan discusses the outcome of this week’s FOMC meeting.
There’s nothing like a paltry 20,000 gain in total nonfarm payrolls to get market participants talking. That is exactly what happened when the February jobs report was released last week. Kevin Flanagan debates whether this is the beginning of a new, weaker trend or is it merely like ‘stubbing your toe’?