Archive for August, 2013

July 2013 Monthly Commentary

August 14, 2013  |   Monthly Commentary   |     |   0 Comment

Longer term interest rates rose in July as the yield curve continued to steepen, albeit at a slower pace than witnessed in May and June.  For the period, the yield-to-maturity of the 10-year note rose 10 basis points to finish the month at 2.58%.  The ETF related spread widening that occurred in June and was described in the last monthly update began to reverse, but the improvement has been inconsistent.  High quality investment-grade corporate bonds ...

Financial Times – 8/7/13

August 14, 2013  |   Financial Times   |     |   0 Comment

Michael Kastner, principal at Halyard Asset Management says there is a risk that bond yields rise further as economic growth for the second quarter and the July jobs number is revised upwards. “It looks like the economy has underlying strength and as an investor you have to respect the bond selling we saw in May and June when the taper was introduced by the Fed.” Mr. Kastner says caution over Treasuries is warranted, in spite of much ...

Financial Times – 7/30/13

August 14, 2013  |   Financial Times   |     |   0 Comment

Michael Kastner, managing principal at Halyard Asset Management, says he is hedging the duration risk in his portfolios from owning longer-dated corporate bonds with interest rate futures. “We are adding exposure across all sectors and see investment grade clawing back some ground on junk,” he says. Investors bet on junk bonds to outperform

Municipal Bonds – Value in a Risky Interest Rate Environment!

August 01, 2013  |   Uncategorized   |     |   0 Comment

Municipal Bonds – Value in a Risky Interest Rate Environment! •    Municipal Bonds Attractive Relative to US Treasury Notes -  Again •    Increase in yield to maturity a welcome development….But the rate is still low! •    Targeting AA rated paper as investors sold good bonds into a bad market •    Implementing interest rate hedges to offset higher rates Many investors are smarting from shockingly negative returns in bond funds, including ETFs and closed end funds.  Thus far, in 2013, longer ...