Dashboard

Yield and portfolio information to help public funds investment officials manage portfolios, monitor markets and benchmark portfolio performance of local government investment pools (LGIPs) and short term portfolios.

Money Market Yields

Fed Easing is No Longer a Central Theme for investors as Possible Fed Tightening Gains Attention

Perhaps it’s an old story today but investors have fully washed Fed easing from their thinking and have begun to incorporate the possibility of tightening late this year or early in 2027.  Inflation will not evaporate immediately, even if the Iran war is ended. Capital requirements for artificial intelligence growth will keep the cost of capital–AKA interest rates–high, and the federal deficit overhangs.   Do term investments have value at these levels? Depends on whether you believe Fed tightening is in the wings.

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Insights

Why the Director of National intelligence is Involved in the Federal Agency Market

It may not be immediately apparent, but President Trump’s naming Bill Pulte Interim Director of National Intelligence has implications for the Federal agency market where $450 billion of public funds are invested. Before you dismiss this as crackpot, consider: Pulte is also the head of the Federal Housing Finance Agency and chairman of both Fannie […]

An Update on Credit

In November we wrote about cracks appearing in credit, cautioning investors that emerging risks could expose corporate bonds and commercial paper to losses and drag down returns of portfolios that hold them. Six months later the cracks have not expanded. Nor have they healed. But risk premiums for both investment grade and high yield credit […]

Ya Wanna Bet? The Rising Place of Prediction Markets in Investing

Would you go to a betting parlor to invest?  Before you answer, consider: Betting on predictions and investing have a lot in common.   Investors regularly use the vernacular of betting to describe market activities. We make “bets” on relative value, the future direction of interest rates and the likelihood that an investment we make might […]

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