◀ The Principal Blog

Posts from the ‘Portfolio Management’ category

Fixed Income Liquidity Concerns? You Bet – You Can’t Sit the Fence Given the “Money in Motion”



The effect of shrinking investment banks’ balance sheet on the liquidity of U.S. fixed income markets has been broadly discussed for the past several years. Events such as the high yield outflow this past July and August has been one of the main reasons why the Federal Reserve (Fed) has tossed…

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Will the Real Inflation Hawks Please Stand Up?



The Federal Reserve started buying mortgage-backed securities and Treasurys right after the financial crisis.  After six years and three rounds of quantitative easing (QE), the Fed’s balance sheet has ballooned to US$4.5 trillion dollars. A lot of prominent economists and academics feared this…

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