2 min readFOMC Meeting The Federal Reserve has taken extraordinary steps over the past six weeks to shield the economy from the massive fallout of the virus pandemic, including emergency interest rate cuts, massive bond purchases and the opening of multiple lending facilities to provide liquidity and backstops to the fixed income markets. Following their regularly scheduled…
1 min readWatch the webcast: Click the above webcast link for episode 1 of Market Update. Hosted by Capital Advisors Group’s Head of Trading, Anthony Cucinotta. Topics covered: Recap of Recent Market Events FOMC Rate Cut and Impact U.S. 1 Month Treasury Bill Analysis COVID-19 Impact on Short-term Investors Overview of OAS Adjusted Spreads Overview of FOMC…
2 min readEconomic Shutdown We are only just seeing initial readings on the state of the post-COVID 19 economy and much will unfold in the months ahead. Data released in early April reflects the dismal reality of the large-scale shutdown of the US economic growth engine. Jobless claims have surged to record levels, with more than 22…
1 min readLargest Relief Package in U.S. History Signed On Friday, President Trump signed a $2 trillion stimulus plan following a 96-0 vote in the Senate and strong support in the House. The bill extends aid through direct payments and expanded unemployment insurance to many struggling Americans, provides loans and grants to businesses, supports draining state funds…
2 min readCoronavirus While domestic economic growth began the year on solid footing, the worldwide spread of the coronavirus along with its effects on global supply chains and potential effects on aggregate demand are likely to dominate financial market movements through springtime. U.S. equity markets sank 15% last week in the fastest ever return to correction territory…
2 min readMonetary Policy Report In its semi-annual report to Congress submitted earlier this week, the FOMC stated that “The U.S. economy continued to grow moderately last year and the labor market strengthened further. With these gains, the current expansion entered its 11th year, becoming the longest on record.” The report noted that inflation remains below the…
5 min readThe coronavirus has been the major event in the global economy so far this year. With more than 40,000 confirmed cases globally as of 2/10/2020, it has already surpassed prior flu pandemics. It has resulted in the effective quarantining of the city of Hubei, along with severe travel restrictions in and around mainland China. There…
4 min readThe 2019 mid-September liquidity squeeze in overnight repo markets was perhaps the single most noteworthy event in the cash markets last year. As we noted at the time, the event posed major questions about the post-crisis banking regime and its impact on banks’ ability to lend out reserves. It also asked important questions of the…
2 min readFOMC Holds Rates Steady The Federal Reserve met last week to review monetary policy for the first time this year and to no one’s surprise, the FOMC left the overnight lending rate unchanged at the 1.50% to 1.75% range. The Fed remains in a wait-and-see mode where interest rates are concerned, saying it “judges that…
2 min readStrong Year for the Markets After trending down on Tuesday morning, markets reversed course and closed the year on a high note. While they were off their December all-time highs, the S&P 500 and Nasdaq posted their best yearly performances since 2013, rising 28.9% and 35.2%, respectively, while the DJIA had its best year since…