EU Crosses Rubicon With Recovery Fund Agreement
On July 21, EU leaders reached agreement on a €750B COVID-19 recovery fund, composed of grants and loans, and settled on a €1.074T budget for the next seven-year period.
July 2020
Will Virus-Linked Risks Overwhelm Small-Cap Equities?
No, we’re optimistic about this diverse collection of companies, and we think investors without dedicated allocations should establish toe-hold positions in developed markets (DM) small-cap equities funded from DM mid- to large-cap peers.
July 2020
Improving Investment Returns: Manager Sizing With Active Risk
By considering the return profile of a manager along with its size in the portfolio, active risk provides additional insight to risk management decisions, helps build better portfolios, and contributes to better governance.
July 2020
Room to Run for Muni Bonds
In this paper, we aim to assess the potential upside and looming risks for munis in the aftermath of the pandemic-induced muni sell-off and subsequent policy-driven rally. Despite the recent volatility, in our view, munis continue to be an attractive alternative to both Treasuries and high-quality corporates for long-term taxable investors.
June 2020
Have Global Equities Bottomed?
Investors should maintain a healthy degree of skepticism about the ability of the global economy and risky assets to manage a V-shaped recovery.
June 2020
Finding Credit Opportunities Amid the Coronavirus Crisis
COVID-19 plunged the global economy into a deep recession triggering concern over a surge in corporate defaults. Recent monetary and fiscal stimulus has allowed a rebound in credit assets ranging from high-yield bonds to highly rated asset-backed securities, but other markets remain dislocated.
June 2020
VantagePoint – The Path Ahead: From a Bear Market to the New Normal
In this edition of VantagePoint, we review the shape of historical recoveries from bear markets and recessions. We believe that both a V-shaped and a disastrous L-shaped economic recovery are unlikely, with a W- or U-shaped economic recovery more probable.
June 2020
Should Investors Avoid China Due to Rising US-China Tensions?
No, we still believe China remains an important exposure for investment portfolios.
May 2020