Tag: yield

The Quixotic Pursuit of Yield

The Quixotic Pursuit of Yield

High Yield bond issuance has benefited greatly from the near zero interest rate environment. The Federal Reserve has played an increasingly larger role in the capital markets since 2009 with its extreme low interest rate and expansionary monetary policies. Q2'20 High Yield bond issuance of $125.4 billion was up 88% sequentially from $66.7 billion in … Continue reading The Quixotic Pursuit of Yield

The Next Recession Will Prove Different for U.S. Equity Markets

The Next Recession Will Prove Different for U.S. Equity Markets

A recession is defined as an economic period where GDP declines for two consecutive quarters. We believe the next recessionary period will be different as a result of artificially low interest rates. The United States' proclivity to print money and maintain artificially low interest rates makes it difficult for institutional investors to find yield. Gone … Continue reading The Next Recession Will Prove Different for U.S. Equity Markets