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Sep 26, 2022
The U.S. Federal Reserve's (Fed) policy setting committee boosted its benchmark rate (fed funds rate) by 75 basis points (bps) or 0.75% on Wednesday, September 21st. That was the third consecutive increase of such magnitude, and it brought the target range for the federal funds rate to 3.0% - 3.25%, the highest level since before the 2008 financial crisis. In the days leading up to the Fed meeting, the benchmark 10-year U.S. Treasury yield climbed past 3.5%, its highest level since 2011, while the 2-year U.S. Treasury yield which is more sensitive to Fed policy actions hit its highest level since 2007, topping 4.0%.
The Fed has been...
There is no doubt that financial markets and the world at large, have been experiencing unprecedented times in the past few years. Financial markets have been affected in recent times by a multitude of factors including a global pandemic, war, and rising inflation. Many of us as investors...
Jun 27, 2022
On Wednesday June 14th the U.S. central bank (Federal Reserve aka the “Fed”) delivered its biggest rate hike since 1994. The Fed increased its benchmark rate by 75 basis points (bps) or 0.75%. The drastic action by the Fed was however not surprising. Many financial market participants...
Jun 20, 2022
You may be wondering how an interest rate could be negative. So, let's take a brief look at "negative interest rates". Firstly, what are they? As the name suggests, the rate is literally negative, i.e., it is below zero. In essence, this means that it costs you to keep your money at the...
Jun 13, 2022
If you think a barbell is just a tool for building muscles, think again. Barbell also refers to a strategy that bond investors can exercise (pun intended) to protect their portfolios from the effects of interest rates and potentially improve their returns.
The barbell strategy, when...
Jun 06, 2022
Rising interest rates have caused bond prices to decrease and bond yields to increase. Consequently, investors are faced with the decision of investing in longer dated bonds or shorter dated bonds which will mature soon and can be reinvested at higher rates. The global bond market may...
May 30, 2022
Earlier this month, Heritage Petroleum (Formerly known as Trinidad Petroleum Holdings Limited “TPHLTT”) announced it would offer to repurchase its 9.75% 2026 bond from investors at a price of 102.563 on May 12th 2022 (or 107.563 for investors responding and agreeing to the tender by May 10...
May 23, 2022
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