September 2020 – Monthly Commentary

October 22, 2020  |   Monthly Commentary   |     |   0 Comment

September 2020 The bond market was little changed in September as investors grappled with continued virus uncertainty and traders with school-aged children tried to figure out the logistics of educating their young.  The latter issue made for uneven liquidity during the month which may have factored into the performance of the stock market.  For the month, the S&P 500 was down -3.91% breaking the string of consecutive positive months that ...

August 2020 – Monthly Commentary

September 22, 2020  |   Monthly Commentary   |     |   0 Comment

August 2020 As we close out summer and the final month of the third quarter, the bond market has been relatively stable compared to the bipolar volatility of the stock market.  Earlier this month, stocks suffered an unexpected downdraft after rising steadily from the March low.  Speculation is that a sizeable Asian-based hedge fund had bought call options on a number of the largest tech equities.  To hedge the sale, ...

July 2020 – Monthly Commentary

August 21, 2020  |   Monthly Commentary   |     |   0 Comment

July 2020 This month, as previously announced, Fidelity will close their Prime money market fund after the fund suffered during the illiquidity of the Corona virus-inspired volatility experienced in March of this year.  We speculated that the decision was a business one made out of the preponderance of risk to reputation had the company been forced to support the fund.  However, we viewed the action as a one-off decision, and ...

June 2020 – Monthly Commentary

July 17, 2020  |   Monthly Commentary   |     |   0 Comment

June 2020 In the decades that the Halyard team has been managing the Reserve Cash Management (RCM) strategy we’ve explained that the goal of the RCM is to outperform the money market universe while avoiding the downside risk the universe has demonstrated on occasion.  We endeavor to accomplish that through security selection, believing the mistake of so many investment advisors have made has been to focus investment in the highest ...

May 2020 – Monthly Commentary

June 17, 2020  |   Monthly Commentary   |     |   0 Comment

May 2020 The Reserve Cash Management composite continued to enjoy the benefit of spread tightening in May, generating a total return net of fees of 0.36%.  The characteristics of the composite changed little from the prior month and the average credit rate is A+. The Federal Reserve executed their lender of last resort function brilliantly.  That is until the June 10th post-FOMC press briefing.  Prior to the ...