May 22, 2020—Just one month has passed since West Texas Intermediate (WTI) crude oil, the U.S. benchmark, moved into uncharted territory and closed the day at a shocking -$37.63/barrel, indicating that owners of a “front month” contract (for delivery of oil in the following month) would have to pay a premium to offload it (as opposed to receiving proceeds from the sale, as is customary).
April 2, 2020—In our 2019 Capital Markets Forecast we highlighted myriad risks posed by the increasing amount and deteriorating quality of BBB-rated debt, which sits in the lowest tier of the investment-grade corporate bond market and just one notch above high yield. A decade of low interest rates, thanks to an accommodative Federal Reserve, incentivized companies to increase their level of borrowing, helping the BBB universe grow by more than 300% since 2009.
February 11, 2020 —This is the fourth in a series on the continuing coronavirus outbreak (Coronavirus Concerns: Monitoring the Risks Closely, but Not Reacting in Portfolios Yet, 1/28; Coronavirus update: Hold the Line 2/3; Coronavirus Disruptions—Which Industries Have Been Hurt Most? 2/5).