Fixed Income
Commentary pieces that cover fixed income economic and financial market topics relevant to financial institutions
Recently, the government reported that Americans have stopped deleveraging, as they took on more new debt than they
paid off, or wrote off, during the third quarter. Consumer borrowings have increased in two of the last three quarters
after falling for 14 consecutive quarters. Something of note may be underway.
The Jackson Hole speech is over. The conventions are over. The campaign will soon be over. I, for one, am starved for some economic candor. It seems that politicians and policymakers can’t bring themselves to speak the truth that we all know to be self evident.
The U.S. Government Response Revisited
This author, for one, is not among those who are highly critical of the numerous actions undertaken by the U.S. Treasury and the Federal Reserve to navigate the financial crisis. While there is plenty of blame to be apportioned regarding pre-2008 failures, including irresponsible corporate leadership, irresponsible financial leverage, irresponsible lending, security underwriting, and investing, and ineffective regulatory oversight, the subsequent actions by the Treasury and the Fed have been highly effective.
Corporate Credit Risk: Attractive Fundamentals and Attractive Valuations
An old adage, “sell in May and go away”, has been especially valid over last three years when corporate spreads tightened in
the first quarter and rapidly widened in the second. Uncertainties related to the health of domestic economy as well as
European sovereign/debt crisis have rightfully been causing negative sentiment toward credit risk. It is these environments that
create opportunities for value driven investors like BBH.
About a year ago, I had the privilege of speaking at an investor conference just after the recently-retired Vice Chairman of the Federal Reserve, Donald Kohn. His topic was a review of the U.S. economy and its prospects ahead.
ABS: Solid Performance and Broadening Opportunity
The market for asset-backed securities (ABS) was born in the 1980s with the securitization by large banks and automotive finance captives of their credit card receivables and automobile loan holdings.
Light At the End of the Tunnel
Evidence continues to mount that the building blocks for a sustainable economic expansion are becoming more durable.
Housing, Mortgage-Backeds, and Banks: Our Strategic Perspective
Housing market pain is still pervasive across American households, but the woes have receded from headlines as the shock of sharp price declines has worn off
My 30-year career in the financial markets has been book-ended by the extremes in monetary policy information dissemination.
Perspectives in a Complex World
The following address was delivered on December 1st, 2011 at the annual BBH Banking holiday dinner. It's been said that all of us in the investment business share a common gene mutation.