Archive for March, 2011

1st Quarter 2011 Municipal Bond Highlights

March 31, 2011  |   Monthly Commentary   |     |   0 Comment

1st Quarter 2011 Municipal Bond Highlights • Short maturity yields are low • Long end yields have corrected • Yield curve is historically steep • Credit spreads are attractive Municipal bonds suffered a decline in price after an apocalyptic prognostication from layman during the 4th quarter of 2010. Suggestions that the municipal market faced defaults in excess of $100 billion resulted in a wholesale exodus from the sector. As we mentioned in our last municipal market piece in January, this ...

March 2011

March 31, 2011  |   Monthly Commentary   |     |   0 Comment

Fixed Income Market Recap Given the ongoing positive fundamentals evident throughout the first quarter, we continue to believe that bond market valuations are out of equilibrium given this stage of the economic cycle, and we continue to position the portfolio accordingly. While we expected that the Federal Reserve would have been more proactive in normalizing interest rates, from a performance perspective we’ve been able to keep pace with the Barclays Aggregate Bond Index by actively trading and ...