Basis Points

After much anticipation, the Fed finally delivered a rate cut at today’s FOMC meeting. This week on the Basis Points podcast, Kevin Flanagan examines the Fed’s data-driven approach, the potential disconnect between market expectations and Fed actions and the crucial role employment data will play in shaping future rate cuts. Basis point: 1/100th of 1 percent.

The UST 2-Year/10-Year yield curve has recently shifted into positive territory, while the UST 3-month/10-Year curve remains deeply inverted. This week on a special episode of the Basis Points podcast, Kevin Flanagan discusses the divergence between the curves, and highlights market expectations on future Fed rate cuts and the potential for a steepening trend ahead. Basis Point: 1/100th of a perce...

With Labor Day behind us, the focus for money and bond markets shifts to the September FOMC meeting, where Fed Chair Powell has hinted at a rate cut. This week on the Basis Points podcast, Kevin Flanagan explores the implications of the upcoming September FOMC meeting and discusses the Fed’s shift in focus from inflation to labor market data. Basis point: 1/100th of 1 percent.

With rate cuts now definitively expected by the bond market for the September FOMC meeting, some perspective is in order. In the third installment of the Money in Motion series, Kevin Flanagan discusses the implications of the new rate regime in U.S. Treasury yields and highlights the advantages of floating rate notes in this investment landscape. Basis Point: 1/100th of a percent Treasury yield:...

Will we experience another case of déjà vu and witness another rally in the U.S. Treasury market? This week on the Basis Points podcast, Kevin Flanagan explains why the Treasury rally needs to be validated. Basis point: 1/100th of 1 percent.

The combination of a dovish Fed Chairman Powell post-FOMC presser and cooling labor market setting provided more fuel for Fed rate cuts. Kevin Flanagan discusses how the debate is no longer centered around the number of potential easing moves for the remainder of 2024, but rather, how large they could possibly be in his Money in Motion series. Basis point: 1/100th of 1 percent.

At yesterday's FOMC meeting, the Fed kept rates unchanged, marking the eighth consecutive meeting where policymakers decided to take no action on the rate front. Against this backdrop, Kevin Flanagan discusses the possibility of a rate cut in the next FOMC meeting in September. Basis point: 1/100th of 1 percent.

The news of President Biden dropping out of the presidential race has created a whole new layer of uncertainty into the market backdrop. Amid this volatility, we suggest honing in on an issue with more clarity: Fed rate cuts. In the first Basis Points podcast episode of the 'Money in Motion' series, Kevin Flanagan discusses how investors can strategically navigate rate cuts in their fixed...

Lately, a hot topic in the investment space has been the timing of when the UST curve could 'un'invert. This week on the Basis Points podcast, Kevin Flanagan covers the dynamics behind yield curve movements, including the timing and factors that could cause the yield curve to move out of negative territory. Basis Point: 1/100th of a percent.

It has been two years since the Treasury yield curve moved into negative territory and the U.S. economy has yet to move into recession territory. This week on the Basis Points podcast, Kevin Flanagan explores the relationship between inverted yield curves and recessions and discusses the current state of the labor market and its impact on the economy. Basis Point: 1/100th of a percent.

At today's FOMC meeting the Fed kept rates unchanged, marking the seventh consecutive FOMC meeting where the policymakers decided to take no action on the rate front. With half of the FOMC meetings for the year in the books, this week on the Basis Points podcast, Kevin Flanagan discusses the possibilities for the latter part of 2024. Basis Point: 1/100th of a percent.

Against the backdrop of a new rate regime in the fixed income landscape, investors have been trying to determine where to allocate funds. Kevin Flanagan dives into key trends within U.S. Credit and why investors should consider this sector of fixed income. Basis point: 1/100th of 1 percent. Treasury yield: The return on investment, expressed as a percentage, on the debt obligations of the U.S. gov...

Fed policy has been the primary force driving the money and bond markets for the past few years. This week on the Basis Points podcast, Kevin Flanagan discusses how the Fed's data dependency has led to volatility in the bond market. Basis point: 1/100th of 1 percent. Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, s...

As we entered this year, all eyes were on the Federal Reserve’s rate-cutting trajectory. The question wasn’t “if” but “when” and “by how much.” However, recent developments have turned the narrative on its head. This week on the Basis Points podcast, Kevin Flanagan discusses this shift and the effect on the markets. Basis Point: 1/100th of a percent.

At today's FOMC meeting, the Fed kept rates unchanged, marking the sixth consecutive time the policymakers decided to take no action on the rate front. This week on the Basis Points podcast, Kevin Flanagan looks ahead for what investors could expect for the remaining meetings this year. Basis Points: 1/100th of a percent.

Following last week’s “hotter” than expected CPI release, the sole focus for the money and bond markets was to, yet again, dial back their Fed rate cut expectations. Ahead of the May FOMC meeting, this week on the Basis Points podcast, Kevin Flanagan dives into an aspect of Fed policy decision-making that has been flying under the radar: the balance sheet. Basis point: 1/100th of 1 percent. Consum...

The first three months and change of 2024 has brought with it a rather noteworthy shift in bond market sentiment. With Fed policy decision-making remaining data dependent for the foreseeable future, this week on the Basis Points podcast  Kevin Flanagan discusses why investors should consider utilizing the time-tested barbell strategy to navigate not only the current setting, but more importantly,...

As the inflation marathon enters the homestretch, the last mile might not be about to get more difficult. This week on the Basis Points podcast, Kevin Flanagan discusses why the journey to the Federal Reserve’s target might not be as smooth as anticipated, and what this could mean for rate cuts and the bond market’s response. Basis point: 1/100th of 1 percent. Consumer Price Index (CPI): A measure...

At today’s FOMC meeting, the Fed did what was widely expected yet again and kept the Fed Funds target unchanged. This week on the Basis Points podcast, Kevin Flanagan discusses the Fed’s balancing act between hopeful markets and the reality of economic indicators and what it means for the future of U.S. Treasuries. Basis point: 1/100th of 1 percent.

With rate cuts now being the primary focus of the markets, the conversation has revolved around when such a move could occur and what the path would ultimately look like. This week on the Basis Points podcast, Kevin Flanagan discusses the rate cutting cycle that occurred in 1995/1996 and how it parallels the current market environment. Basis Point: 1/100th of a percent.

The U.S. economy and inflation have surprised the bond market in 2024, reversing the rally of 2023. This week on the Basis Points podcast, Kevin Flanagan explores the implications of this on the UST 10-year yield and the Fed’s rate policy.  Basis point: 1/100th of 1 percent. 

2024 marks ten years since the issuance of U.S. Treasury (UST) floating rate notes (FRNs) and the launch of our Floating Rate Treasury Fund (USFR). This week on the Basis Points podcast, Kevin Flanagan discusses how USFR seeks to offer a solution for the current and prospective interest rate landscape. Important Information: Performance is historical and does not guarantee future results. Current...

Yields are high and profit margins have held up well despite rising cost pressures. How will that affect U.S. Credit? What are the drivers behind this growth? And where is the market headed? This week on the Basis Points podcast, Kevin Flanagan leads a discussion with Morgan Stanley’s Vishwas Patkar on what makes U.S. credit potentially attractive to investors and advisors, and the trends that wil...

Is the U.S. Treasury market experiencing a "Groundhog Day"? This week on the Basis Points podcast, Kevin Flanagan reflects on this time last year when the bond market was anticipating a recession and counting on weak jobs data to confirm it as we enter a similar narrative heading into 2024. Basis Point: 1/100th of a percent.

Today marked the first FOMC meeting of 2024, and as widely expected, the Fed kept the Fed Funds target unchanged. We believe rate cuts are coming, but they do not appear to be imminent just yet. This week on the Basis Points podcast, Kevin Flanagan provides his insights on the Fed’s timing for rate cuts in 2024 and analyzes factors that will affect monetary policy in 2024. Basis Points: 1/100th of...