Despite the ongoing effort of the Federal Reserve to manipulate bond prices higher, the market experienced a mild bear market in January. For the month, the price of the benchmark 30-year Treasury note fell more than 4% as investors reallocated money out of bonds and into stocks. The selling was disproportionately focused on maturities of […]
“It’s been a one-way street for a long time,” says Michael Kastner, principal at Halyard Asset Management. “This time last year it was a lot easier to buy investment grade bonds, but now rates are very low. You don’t need to see rates rise that much in order to erode a small coupon.” Investors face […]
“The Street has less appetite for bonds, and when ETFs need to sell, there is potential for an ugly reversal,” says Michael Kastner, a principal at Halyard Investment Management. “As rates move higher we will start to see investment managers sell lower-quality paper.” Fears grow over investment-grade debt
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As 2012 came to a conclusion, Congress continued to bicker over the details of the fiscal cliff settlement. With across-the-board tax hikes and spending cuts looming and the Republican Party weakened by Speaker of the House Boehner’s failed “plan B” bluff, a compromise was reached on the last day of the year. As it stands, […]
“Investors are over-optimistic on earnings and we think the debt and fiscal issues could come back to bite the market hard,” said Michael Kastner, principal at Halyard Asset Management. Billions pumped into global equities
At first glance, economic and market activity in November was much as it has been throughout the year. The economy continued to add jobs at a modest rate, and at a pace that isn’t meeting the growth target of the Federal Reserve. Retail sales bounced back from the weaker level witnessed in October, as the […]
As we have mentioned in the past, Bond ETFs can be a less efficient way to access the fixed income market. For the month of December, the largest Municipal Bond ETF has fallen 2.4% MTD compared to a 73bp decline for the market as a whole (as measured by the Barclay’s Municipal Index). The ETF […]
“The fiscal cliff does matter and markets should be worried,” says Michael Kastner, principal at Halyard Asset Management. Brace for a game of chicken on fiscal cliff Login Required
MICHAEL KASTNER, PARTNER, HALYARD ASSET MANAGEMENT, WHITE PLAINS, NEW YORK “I’m kind of surprised. It’s hard to figure out with what’s going on with Sandy. The market was looking for something very different. Overall it’s good to see. The payroll number is very encouraging. The bond players are not buying it though because the long […]