What's in the news: Over the past few months the U.S. Treasury 10 year yield has risen slightly over 100 basis points from it’s July trough [1]. Still too low in our opinion for income oriented investors. In a recent Wall Street Journal Article, Jeff Brown posed the following question, “What if you could earn 6% or 7% in a security that is safer... Read more »
CIP Quips
Gearing Up for Trumponomics
Published on Jan 3, 2017
What's in the news: Market indices are hitting all-time highs in the euphoria of a post-election Trump victory. However, talk of infrastructure spending, tax cuts and other fiscal stimulus plans, like deregulation, have also caused a sell-off in the bond market as concerns over inflation and interest rate hikes have mimicked the same euphoria.... Read more »
Putting the Income in Fixed Income
Published on Dec 13, 2016
What’s in the News… Callan Institute recently published research focusing on how institutional investors can achieve a 7.5% return while minimizing risk. Using an optimizing tool to find this efficient frontier, with the asset mix based on forward-looking capital market projections (which Callan created), the research yielded some interesting... Read more »
Benefits of a Rising Interest Rate
Published on Nov 29, 2016
Did you know… The noise surrounding the impending interest rate hike tends to send quivers through the average investor’s boots. While the details remain uncertain, let’s take a moment to point out some of the positive implications that may come along with an interest rate hike. Higher Returns on Interest Income Rising interest rates would benefit... Read more »
Blackrock’s Bond Chief Gets it
Published on Nov 15, 2016
What’s in the news: In a recent interview Blackrock’s Global Chief Investment Officer of Fixed Income, Rick Rieder, was asked a series of questions surrounding the election, his views on the biggest risks in the bond market, and his thoughts on where to invest. The snippet below caught our eye… Source: Market Insider What are we thinking? As an... Read more »
Yield Curve Anatomy
Published on Nov 1, 2016
Did You Know... The U.S. Treasury Yield Curve is one of the most used charts to explain economic health. Typically the longer end of the curve will show higher yields and as the curve climbs, risk premiums and inflation risk increase. Ergo, the shape of the curve can serve as a good indicator of growth and inflation. When yields on longer term... Read more »
Tax Advantages of Preferred Securities
Published on Oct 18, 2016
Did you know… Many shares of preferred securities produce qualified dividend income which can be taxed at rates ranging between 0% to 20%, which is significantly lower than those of bond tax interest rates that can be taxed at a rate of as high as 39.6%. While much depends on an investors’ tax bracket and when the security was held, preferred... Read more »
Preferreds as Income Enhancers
Published on Sep 27, 2016
Did you know… While they are often referred to as “stocks”, preferred securities are a cross between stocks and bonds, possessing attributes of both. In general, preferreds lack the same potential for capital appreciation as common stocks. However, their relative price stability compared to common stocks, and their ability to generate higher... Read more »
Current Views and Opinions
News and Recognition
- February 2021 Memorial Business Journal: "Financial Market Update: What Will 2021 Bring?" by John Roscoe
- Jason Benowitz Featured in TD Ameritrade Network "On the State of the Economic Recovery"
- "Reddit Mania Overshadows Outstanding Earnings Season for Tech" Jason Benowitz's commentary featured in Bloomberg