Markets heed data, not Fed Speak

Fed stop sign with beatiful clouds and building as a background

US Federal Reserve Chair Jerome Powell has been talking himself hoarse lately. Ever since he failed to push back against the market’s overly ebullient expectations for rate cuts following the December 2023 policy meeting, he has told anyone who’d listen the Fed isn’t ready to declare victory over inflation. His press conference in January this […]

Sun setting on the tightening cycle

A busy month of news pertaining to the liquidity markets ended on a high note when the US Federal Reserve maintained the target fed funds rate at 5.25-5.50% and pushed the probable first rate hike to late spring at the earliest. Degrees of confidence US Federal Reserve Chair Jerome Powell returned to the word “confidence” […]

Where are the best opportunities at the short end of the curve?

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Short Term Investments Committee

Higher for longer

Face on paper money

2024 Outlook

The overlooked appeal of short-dated euro corporate debt

Euro text on a paper money

A comparison between short-dated and longer-dated investment grade euro-denominated corporate debt suggests front-end investors receive a similar yield and spread, without any deterioration in the credit fundamentals, according to our analysis. While it remains imperative to always approach each issuer on a standalone basis, we believe, the short-dated euro corporate universe provides a particularly compelling […]

Insight across the fixed income spectrum

The significant repricing of EMD risk last year provides a pronounced opportunity for attractive forward-looking total returns. Even in an environment where interest rates plateau and dip over the next year, money market funds will continue to offer attractive yields compared to recent history. Federated Hermes real estate debt strategy seeks to deliver a return […]

Not your average credit cycle

Movement of stars in the night sky

Three things we learned: Issuers are preparing for a new normal. Nothing’s written in stone but higher for longer has already profoundly affected credit market fundamentals. Dispersion could be a central theme of 2024. Short-term money markets have not witnessed significant outflows… yet. Expectations are for asset growth to continue into 2024 but will be driven by institutional […]

Up then (marginally) down again

market snapshot

Expert insights on the short end of the curve

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Short Term Investments Committee

High-wire act: Is it possible to quell inflation and to avoid a recession?

US dollar capital markets

market snapshot