June 13, 2019

Could a Fed Rate Cut Be Bearish?

The next Federal Reserve Open Market Committee meeting is set for June 19, 2019. Based on the Bloomberg World Interest Rate Probability screen (WIRP), markets are pricing in a 20% chance for a rate cut next week, an 84% chance in July, and a more than 94% chance of a rate cut in September. Bloomberg WIRP as of 6.12.2019 Beware […]
January 12, 2016
Raising Rates Into Defaults

Raising Rates Into Defaults

We have been stating for the past six months that risk almost always starts at the “fringe” and works its way to the quality.  The troubles in the energy patch are not isolated. The defaults will eventually work their way across multiple industry groups, as the excess in credit begins to reset. Defaults on speculative debt are nothing new. However, there is […]
May 30, 2013
smart money

The Smart Money

Smart Money There are a number of structural reasons why we call movements in the High Yield Bond asset class the “Smart Money”.  A key reason is liquidity. High Yield Bonds are much less liquid than stocks. Bonds are still traded over the counter, dealer to dealer based on a wide variety of inputs such as inventory, credit risk and […]
March 28, 2013

Here We Go Again

As we approach the end of the first quarter, stocks have once again delivered strong first quarter performance while negative headlines from Europe are reemerging. Is the stage is set for another April/May decline? Here is what we are watching at Anchor Capital. The Dow Jones Industrial Average is reaching new all time highs and media channels are counting down […]