Archive for June, 2013

ETF’s “Gate” liquidity

June 21, 2013  |   Uncategorized   |     |   0 Comment

Did fixed income ETF’s sing their swan song yesterday?  Maybe not, but after the abysmal performance yesterday, investors must reevaluate the risk and liquidity of an ETF before assuming the product is a cost-effective proxy for a diversified fixed income portfolio.  In the midst of the fixed income rout, ETF sponsors found themselves unable to absorb the selling.  The Financial Times quotes a Citi e-mail in which the trader wrote, “We are unable to take ...

Monthly Commentary – May 2013

June 13, 2013  |   Monthly Commentary   |     |   0 Comment

The normalization of interest rates has begun.  We’ve warned for some time that Fed-engineered interest rate manipulation would result in investor losses once the central bank ended the practice.  May was the beginning of that trend.  Comments made by several members of the Federal Open Market Committee suggesting that the Fed was contemplating “tapering” the pace of their open market bond purchases was enough to panic investors into selling fixed income securities.  For the month, ...

Financial Times – 6/11/13

June 12, 2013  |   Financial Times,In the News   |     |   0 Comment

“No one wants to own Tips and the lack of Fed talk as yields have risen suggests they are letting the market feel its way,” said Michael Kastner, managing principal at Halyard Asset Management. QE worries drive Treasury rates up

Financial Times – 6/7/13

June 12, 2013  |   Financial Times,In the News   |     |   0 Comment

“We are definitely worried that the market is in a cycle where selling of bonds begets more selling,” said Steven Boyd, principal at Halyard Asset Management. The hefty outflows illustrate the anxiety of investors ahead of the May employment report due on Friday. The Federal Reserve has indicated that its suppression of interest rates under quantitative easing depends on the tone of economic data, led by the monthly jobs figures. “‘The jobs report will be a harbinger ...

Financial Times – 5/31/13

June 03, 2013  |   Financial Times,In the News   |     |   0 Comment

“No one likes to see equities close at their low on a Friday as it sets the market up for an ugly open the following week,” said Michael Kastner, managing principal at Halyard Asset Management, adding that short sellers in the Treasury market were closing positions later in the day. Markets whipsaw on Fed uncertainty