Asset Management | Page 2 of 8

Blue Horseshoe Loves 75bp

The leak to the Wall Street Journal was on Monday ahead of the June FOMC was on the money. The FOMC hiked the funds rate by 75 basis points

Backdraft

The prevailing bias on short term interest rates ahead of the June FOMC meeting tonight clearly has a hawkish skew. Of course, only a “10 ye

The Evisceration Phase

A key element of our process is to assess whether a price episode is an emotional overreaction or a genuine response to a shift in fundament

Hail Storm

An important question investors should always ask is; “what is your quarrel with price?” From our perch, the reaction to the US data on Frid

Like a Wrecking Ball

The impulsive rally in the US dollar over the past year has once again highlighted its role as a wrecking ball for risk assets. To be fair,

On the Brink of Demand Destruction

An observation we made late last year prior to the conflict in Ukraine was that the arithmetic of energy was fairly straightforward. Resourc

Mr. Justified

From our perch, Friday’s US employment report didn’t really change perceptions on the state of the US economy. While there was some evidence

Don't Say The Quiet Part Out Loud

Earlier this year the monthly US employment report was significant as a key input for the Fed’s reaction function and short term interest ra

Taming the Hurricane

It is an obvious point, but volatility is a derivative of price itself. From our perch, there has been a notable moderation in bond and swap

The Flightless Bird

Something that caught our eye this week was the policy action by the Reserve Bank of New Zealand to hike the official cash rate by 50 basis

Where Credit's Due

One of the troubling elements of the recent episode has been the sustained widening in credit spreads (the credit risk premium). Of course,

It's Never a Straight Line

From our perch, the prevailing bias has become rather pessimistic on risk assets. That observation is evident in a range of sentiment and po

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