While the bearish bond trade currently has a lot of momentum, we continue to think that Treasury yields are close to a cyclical peak and will be lower on a 6-12 month horizon.
In this special report, we discuss whether the economic conditions necessary for a stronger yen (and higher JGB yields) will materialize over the next 12-to-18 months.
Investors are wondering about the risk of a US government shutdown as the September 30 deadline draws near. Would a shutdown be a significant negative catalyst for the stock market? While there is a high risk of a government…
BCA Research's US Bond Strategy service recommends a cautious allocation to high-yield munis, but the team still prefers the sector over high-yield corporate bonds. Along with junk-rated corporate bonds, high-yield munis…
Japanese real GDP grew at an annualized pace of 6% year-on-year in Q2. Reading the tea leaves from the release, public investment rose by 5% quarter-on-quarter annualized, while residential investment jumped by a whopping 7.7%.…
The selloff in US Treasuries has accelerated in recent weeks and the 10-year US Treasury yield is quickly approaching the cyclical peak of 4.25% that was set last October. While momentum is certainly on the side of the bond bears…
High-Yield municipal bonds have performed well in recent years, but valuations are now stretched. We recommend an underweight allocation, though we prefer high-yield munis over high-yield corporate bonds.
Inspired by a client’s questions, we examine the rationale behind the implementation of the trailing stop governing our near-term asset allocation recommendations.