Fixed Income Weekly – 11/16/16
Searching for ways to better understand the fixed income space or looking for actionable ideals in this asset class? Bespoke’s Fixed Income Weekly provides an update on rates and credit every Wednesday. We start off with a fresh piece of analysis driven by what’s in the headlines or driving the market in a given week. We then provide charts of how US Treasury futures and rates are trading, before moving on to a summary of recent fixed income ETF performance, short-term interest rates including money market funds, and a trade idea. We summarize changes and recent developments for a variety of yield curves (UST, bund, Eurodollar, US breakeven inflation and Bespoke’s Global Yield Curve) before finishing with a review of recent UST yield curve changes, spread changes for major credit products and international bonds, and 1 year return profiles for a cross section of the fixed income world.
In this week’s note, we discuss some opportunities that massive UST curve steepening and the dislocation post-election have created.
Our Fixed Income Weekly helps investors stay on top of fixed income markets and gain new perspective on the developments in interest rates. You can sign up for a Bespoke research trial below to see this week’s report and everything else Bespoke publishes free for the next two weeks!
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Homebuilder Sentiment Stable
The monthly report on homebuilder sentiment from the NAHB is always a favorite of ours because it provides one of the earliest reads of the health of the residential real estate market for the month that it is reported in. This morning’s report on sentiment for the month of November was unchanged at 63, which is right inline with expectations. This report was also notable given the fact that it was the third straight month where the overall reading was 63 or above, which hasn’t happened since 2005.
The table to the right breaks down this month’s report by category and region. As shown, there wasn’t much in the way of big moves. Present sales was unchanged, Future Sales dropped slightly, and Traffic saw a small increase. In terms of the regional breakdown, every region but the South increased with the largest gain coming out West. Below, we show the trends of sentiment for each region over time. While sentiment in the South and West has been moving sideways, we have been seeing strength in previously lagging regions like the Northeast and Midwest.
Bespokecast Episode 2 — Liz Ann Sonders — Now Available on iTunes, GooglePlay, Stitcher and More
We’re happy to announce that episode 2 of Bespokecast is now available to the general public via the various podcast platforms.
In our newest conversation on Bespokecast, we speak with markets savant Liz Ann Sonders. From her early days as a guest on Lou Rukeyser’s Wall Street Week to her current role as Chief Investment Strategist for Charles Schwab, Liz Ann has developed a wide following in the industry throughout her impressive career. Our wide-ranging conversation with Liz Ann covers a number of topics including her career, the changes in financial markets media coverage we’ve seen in recent years, shifts in investment strategy between passive and active management, the current state of the global economy, and changes in the market landscape following the US Presidential election. It was great to get a chance to talk to Liz Ann, and we hope you enjoy the discussion!
Each new episode of our podcast will feature a special guest to talk markets with, and Bespoke subscribers receive access one week before it’s made available to the general public. If you’d like to try out a Bespoke subscription in order to gain access to these podcasts a week in advance, you can start a two-week free trial to check out our product. To listen to episode 2 or subscribe to the podcast via iTunes, GooglePlay, OvercastFM, or Stitcher, please click below.
Dynamic Upgrades/Downgrades: 11/16/16
The Closer 11/15/16 – Microcap Pile-On, Wages Wild
Looking for deeper insight on global markets and economics? In tonight’s Closer sent to Bespoke Institutional clients, we review where most buying has been focused during the recent explosive rally in equity markets. We also take a look at good economic news that came today in the form of the Atlanta Fed’s Wage Growth Tracker.
The Closer is one of our most popular reports, and you can see it and everything else Bespoke publishes by starting a no-obligation 14-day free trial to our research!
ETF Trends: US Indices & Styles – 11/15/16
Biotechs and banks have led the rally out of the election but small caps are arguably more impressive with various flavors of S&P 600 and Russell 2000 indices flying and even the micro caps getting in on the action in a big way. Infrastructure plays (PKB, SLX, FXR) have also performed well. On the losing side of the equation Mexico and the rest of EM continue to grind lower while gold and the bond market also underperform dramatically.
Bespoke provides Bespoke Premium and Bespoke Institutional members with a daily ETF Trends report that highlights proprietary trend and timing scores for more than 200 widely followed ETFs across all asset classes. If you’re an ETF investor, this daily report is perfect. Sign up below to access today’s ETF Trends report.
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