As written in last month’s update, we feared the Chinese monetary authorities risked losing investor confidence due to their manipulation of the capital markets. That fear came to pass in August and it wasn’t limited solely to the Chinese market. With investors grappling with whether the Federal Reserve would raise overnight rates in September, price […]
Michael Kastner, principal at Halyard Asset Management, investigates the impact that prohibiting companies from buying their own equity shares would have on the markets Private Asset Management Magazine – August 2015.
July 2015 The capital markets continued to demonstrate heightened volatility as investor appetite for risk vacillated between insatiable and intolerant. Given the surprisingly hawkish tone of the July Federal Open Market Committee statement, we were surprised that the news took a back seat to the plunge in Chinese stocks. The Chinese stock market had been […]
The bond market was under selling pressure for most of June as the economic data released during the month was unequivocally positive. On the back of that, stock prices soared and interest rates drifted higher. Reacting to the upturn in economic activity, Fed Chair Yellen, at the post Open Market Committee meeting, said that the […]
Economic activity continued to accelerate in May, as the weather finally stabilized and recession concerns abated. Despite the improvement, the bond market was mixed, with credit spreads generally wider, especially in the municipal bond market. The continued acceleration in economic activity was underscored by the robust jobs report released on June 5th. Hours after the […]
For most of the month, bonds traded at the high end of the price range as investors continued to fret that the muted Q1 economic activity might be the start of a trend rather than simply weather related. However, in the last few days of the month, those concerns abated with decidedly improved economic activity. […]
The Fixed Income markets were hampered by weakness in the municipal bond market, as bonds issued by Illinois and Chicago came under selling pressure due to pre-mayoral election jitters and by the seasonal uptick in new issue supply. The concern was that Mayor Rham Emanuel was at risk of losing to the Cook County Commissioner, […]
“The bond market still thinks the Fed is bluffing,’’ said Michael Kastner, managing principal at Halyard Asset Management. Inflation expectations set to ease Fed fears
February 2015 In a polar opposite of the scorching rally witnessed in January, 30-year bond yields soared last month, rising 50 basis points in the first three weeks before settling 43 bps higher. The change in the bullish tone of the market was entirely attributable to the employment report. Naysayers had been ignoring the robust […]
January 2015 The ad hoc monetary policy of the Global Central Banks and their “beggar thy neighbor” currency policies turned downright bizarre in January resulting in a sharp and unexpected rally in bond prices. On the morning of January 14th, the Swiss National Bank (SNB) shocked the capital markets by abandoning its exchange peg against […]