Category: Whitepapers

 3/30/2020  The long-awaited Coronavirus Aid, Relief and Economic Security (CARES) Act was passed, totaling $2.2 trillion in its final form. Despite hopes for passage mid-week, the final bill was delayed due to opposition about some components from politicians on both the far right and far left, as well as operational…

 3/30/2020  By buying large amounts of some debt (treasuries and agency mortgages, primarily, but also targeted purchases in other segments), the Fed has agreed to become a natural source of promised or actual demand where there otherwise might not be any. This can help stem the tide of possible price…

   3/23/2020  These are difficult times, not only from an economic and investment standpoint, but a community one as well. This societal strains and uncertainty over depth and time-frame of the current pandemic add to the volatility in financial assets. Keep in mind, though, as we’ve mentioned in prior notes, that…

 3/16/2020  In short, it’s about messaging and credit markets. While lowering interest rates by a percent to zero at this stage may not make a marginal difference to consumer and corporate borrowers on a day-to-day level, it does allow for a further easing in financial conditions. Such accommodation could theoretically…

 3/12/2020  Negative sentiment concerning the coronavirus has been relentless, which has been spurred by media coverage and a variety of governmental actions to combat the contagion’s spread. Most recently, these have included the President’s temporary ban on incoming flights from Europe (which appeared to be a catalyst for today’s -7%…

 3/9/2020  There has been debate among Wall Street economists about last week’s cut, as the unconventional action (and its magnitude) seemed to both soothe and incite concern in financial markets. The new lower rates may help boost borrowing and ease the penalty for taking on debt, while also spurring questions…

 3/9/2020  As if markets hadn’t produced enough volatility already in recent weeks, this morning’s initial drop of -7% triggered stock exchange circuit breakers—a computer system intended to temporarily stop trading activity, with the purpose of stopping a free fall in prices that can be exacerbated by algorithmic trading. What changed?…

 3/2/2020  Considering the difficulties in precise real-time measurement, as well as determining the transmission mechanisms of the virus, the potential impact is still difficult to predict. Updates have been coming out on a daily basis in recent weeks, although the virus itself has been circulating since last November. The uncertainty…

 2/25/2020  Financial markets have been especially hard-hit today, with reports of new coronavirus (COVID-19) cases appearing in South Korea, Italy, and Iran. The uncertainty over transmission and fears of a global pandemic—and resulting slowdown in economic/financial activity—has led to the sharp negative response in risk markets. Of course, there is…

 2/4/2020  The spread of the new coronavirus has taken over the headlines and hijacked market sentiment in recent weeks. Thus far, through available medical data, it appears that while the virus appears more contagious than the similar SARS epidemic in 2003, it is less lethal. The fatality rate for the…