Sage is an independent investment management firm headquartered in Austin, Texas, that serves the institutional and private client marketplace with traditional fixed income asset management, responsible investing portfolios, global tactical ETF strategies and liability-driven investment solutions. *Sage does not approve or endorse any third-party communications on this site.
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Congratulations to our own Greg Cobb, Director of Insurance Solutions, for his appointment to the faculty of the International Center for Captive Insurance Education (ICCIE)!
We extend a *huge* thank you to our extraordinary faculty members! Come see for yourself how exceptional they are -- register for an ICCIE course today: https://lnkd.in/ejQQ9R_W
Later this month, Sage’s Thomas Urano will join industry experts to examine and discuss the current investment landscape. Hosted by Bloomberg, the discussion will provide key insights into strategies for enhancing investment performance in a shifting, competitive market. Learn more about this event: https://lnkd.in/gbdw8YVC
Sage’s Thomas Urano speaks with MarketWatch about the Fed’s rate cut and its impact on the market outlook amid inflation concerns. Read more: https://lnkd.in/dyVqKJDT
The FOMC initiated its long-awaited policy action with an outsized 50 basis point cut at its September meeting. However, bond yields rose across the yield curve following the FOMC decision and Powell’s comments. The FOMC committee was divided as to what the federal funds rate would be by year-end, as seen in the accompanying dot plot. Coupled with Chair Powell’s reluctance to commit to a more aggressive rate path during his remarks, this injects uncertainty into the notion that the FOMC will continue to cut rates aggressively in the face of non-recessionary economic data, which could result in interest rates remaining at these levels or higher over the coming weeks. Read more: https://lnkd.in/gWeh-aBB
A large population increase in Texas over the last several years has increased demand for new K-12 school buildings. As a result, bond authorization approvals for local Independent School Districts (ISDs) have surged 560% over the past 10 years. In general, spreads on Texas bonds are higher than other AAA states due to the lack of a natural buyer base in the State of Texas, given that the state does not impose an income tax on residents. The increased bond supply has caused spreads on PSF bonds to more than double recently, a summertime trend that we have observed during prior years as well. Read more: https://lnkd.in/gANbQEGR
From Sage’s 𝘛𝘩𝘦 𝘋𝘢𝘴𝘩 𝘧𝘳𝘰𝘮 𝘊𝘢𝘴𝘩 "With the Federal Reserve signaling a shift toward rate cuts . . . returns on cash and money market instruments will likely decline, making it an opportune time to consider extending duration into longer-term investments that could offer more stable returns in the coming environment. . . . The following shows the performance of T-Bills versus longer-maturity bonds during different Fed cycles over the past 32 years. During Federal Reserve rate-cutting and 'on hold' cycles, longer-duration bonds typically perform better than cash investments." Read more: https://lnkd.in/gi6gWMac