Archive for the ‘Monthly Commentary’ Category

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 ...

April 2020 – Monthly Commentary

May 18, 2020  |   Monthly Commentary   |     |   0 Comment

April 2020 We open this monthly commentary with a discussion of the year-to-date performance of our Reserve Cash Management composite.  We manage the underlying portfolios of that composite in a highly conservative fashion and that’s reflected in the performance.  Through April, the total return has been 0.45%, net of fees.  That compares favorably to PIMCO’s MINT, and Blackrock’s NEAR, which are the largest short maturity fixed income ETF’s in the ...

March 2020 – Monthly Commentary

April 24, 2020  |   Monthly Commentary   |     |   0 Comment

March 2020 Since we penned our last monthly update, the unthinkable has come to pass.  The Coronavirus death toll, which just a month ago seemed an abstract concern, has come to cripple the daily activities of the entire world.  Social distancing, face mask demand, shortages of staples such as paper goods, pasta, and flour have become part of our common consciousness.  Our leaders have begun to talk of restarting the ...

February 2020 – Monthly Commentary

April 24, 2020  |   Monthly Commentary   |     |   0 Comment

February 2020 We’re going to start this monthly update by focusing on the positive because there is so little of it in the media lately.  The most notable news was the February employment report which astounded investors with a gain of 273,000 net new workers joining the workforce, 100,000 more than had been forecast.  Moreover, the previous month was revised from 225,000 net new workers to 273,000.  The unemployment rate ...

January 2020 – Monthly Commentary

February 14, 2020  |   Monthly Commentary   |     |   0 Comment

January 2020 The Treasury Department is the agency assigned the responsibility for issuing government debt, among other varied responsibilities.  Since the financial crisis, the Treasury has been tasked with financing the enormous debt burden of the United States.  Initially, criticism of profligate deficit spending was heard from the “Tea Party” politicians, but over the course of the last few years, that criticism has ceased.  In fact, acceptance of the deficit ...

October 2019 – Monthly Commentary

December 05, 2019  |   Monthly Commentary   |     |   0 Comment

October 2019 Last month we wrote of the technical hiccup in the Repo market, the financing mechanism Wall Street utilizes to borrow money to pay for securities.  We identified it as a symptom of too much government borrowing as the U.S. runs wider and wider deficits.    To reiterate, the repo market is a little-followed, but important cog in capital markets.  We also wondered what the government would do about the ...