YieldX Resource Center

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May 17

Stew’s Views

Is it Safe? By some measures, the selloff in the US fixed income markets has reached historic proportions.  Whether measuring the return of the Bloomberg Aggregate Index, the High Yield Index or US treasuries, the selloff has been dramatic since the highs of 2020. For context, the current drawdown from highs for the AGG is close to -13%, and for TLT (long duration treasury ETF),…

May 16

Stew’s Views

Have We Reached Peak Inflation?  US CPI Inflation is running at 8.5% year over year, and core CPI (ex. food and energy) registered a 6.5% print in the latest monthly reading.  With the broad-based rise in prices, global central banks have put their focus on price stability, and most of the monetary authorities in the developed and emerging market worlds are in the midst of…

May 9

Stew’s Views

Short Duration High Yield Funds vs. Loans Over the past six months, US leveraged loan funds have outperformed short duration high yield funds by a meaningful amount. The key driver of the relative performance was the lack of duration in the loan cohort.  Most leveraged loans are floating rate, and the index which floats is typically 3- or 6-month Libor, which is soon to be…

May 2

Stew’s Views

Weathering the Volatility Storm There have been very few places to hide from the financial market volatility of the past few quarters. Seeking shelter from the storm has been almost impossible, as every sector of the fixed income market is in the red, and equities have been repricing lower. The tables below highlight the pervasive nature of the down trade. In actuality, diversifiers to riskier…

Apr 25

Stew’s Views: April 25, 2022

May the Fourth Be with You! The Federal Reserve meets next Wednesday, May 4, in what will most likely be the second consecutive meeting during which they decide to raise rates. After slashing rates to 0% at the onset of the pandemic, the central bank has now begun the process of normalizing monetary policy.  What to Expect from the Fed for the Rest of the…

Apr 19

Stew’s Views: April 19, 2022

Add Closed-End Fund Leverage to the Watch List Closed-end funds are unique vehicles.  Unlike exchange traded funds (ETFs) and mutual funds, closed-end funds are exactly what their name says they are – investment vehicles that issue a set amount of shares and are not open to new money unless the fund does a shareholder rights offering or secondary to add more capital to the structure….

Apr 18

Stew’s Views: April 18, 2022

Breaking Down the Fed’s Inflation Playbook Raising rates to tame inflation is a play right out of the economic textbook. As the US CPI inflation rate has moved from below 1% last year to the current 8.5%, the Federal Reserve is being forced to drain liquidity from the system as “too much money is chasing too few goods.”   The Fed is threading a needle—in their…

Apr 13

Addepar Fact Sheet

It’s no secret that the rapid acceleration of digitization in fixed income trading, data, and investments has propelled yield-driven investing forward. Read more on how advisors are looking for ways to optimize their positions all while benefiting from institutional-grade quant technology and analytics.

Apr 11

Stew’s Views: April 11, 2022

Three Things to Watch This Week As we look ahead to this holiday week of Easter and Passover, there is no shortage of events over the coming days to keep investors and savers alert. Volatility across all asset classes has become a hallmark of 2022, as both knowns (central bank rate hikes) and unknowns (Russia/Ukraine) have created what seems like a pendulum — as equities…

Apr 4

Stew’s Views: April 4, 2022

The triple threat in the first quarter—continued Covid lockdowns in China, the Russia invasion of Ukraine, and global central bank tightenings—created a volatile and challenging environment, and risk premiums across asset classes rose accordingly. Read more from YieldX’s Chief Investment Officer, Stewart Russell on how these market challenges can be opportunities.

Mar 22

Stew’s Views: March 22, 2022

Last week was an epic week for markets as the Federal Reserve raised rates for the first time since 2018, we witnessed market supportive comments from Chinese officials and there were talks of a potential ceasefire deal between Ukraine and Russia. Read more from YieldX’s Chief Investment Officer, Stewart Russell on why short duration portfolios make sense in light of recent fed rate rises.

Mar 17

The Case for High Yield Allocations Whitepaper

Over the past two months, high yield spreads have widened in sympathy with volatile equity markets. And while it’s never wise to catch a falling knife, the dollar cost averaging into high yield portfolios is attractive, warranting a closer look from investors. Check out our latest whitepaper where we make the case for high yield allocations.

Mar 16

Stew’s Views: March 16, 2022

The Federal Reserve is in an uncomfortable place from the so-called misery index, the combination of the unemployment rate and the annual CPI inflation rate. Will the Federal Reserve be able to push rates higher, while at the same time reducing the Federal Reserve balance sheet, without causing a recession? Read more from YieldX’s Chief Investment Officer, Stewart Russell.

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Mar 14

Stew’s Views: March 14, 2022

Commodity prices have made historic moves over the past few weeks, with energy, grains and nickel being the most significant, as boycotts of Russian exports and Ukraine’s inability to distribute their wheat have pushed up prices at the wholesale and retail level. Read more from YieldX’s Chief Investment Officer, Stewart Russell on how the fed is navigating this stagflation economy.

Mar 11

Investment Grade vs High Yield Credit Spreads

The recent widening in investment grade (IG) credit spreads both outright and relative to high yield is meaningful. Given inflation readings at ~7.5% and the Federal Reserve is on the cusp of a rate hike cycle, buying longer dated fixed income might not be an obvious new position exposure. Read more from our Chief Investment Officer, Stewart Russell.

Mar 11

The Electronic Credit Trading Revolution Isn’t Just for Wall Street

As the narrative around the electronic trading revolution in fixed income gathers speed, it’s fair to assume plenty of non-institutional clients are wondering why it really matters to them.  Fixed Income markets have long since felt like a closed group for institutional investors, since nearly all technology advances and considerations have been focused on the biggest brokers and fund managers. While that has been true,…

Mar 10

Gaining Exposure to the Yield Curve with Less Risk and More Reward Whitepaper

There are numerous ways to gain exposure to the short end of the US fixed income market. At YieldX, our tools allow investors to construct portfolios that can have more yield and less risk than other short duration alternatives. In this whitepaper, let’s look at what’s behind the curtain and see how an optimized portfolio of single securities or one of funds can provide investors…

Mar 8

Stew’s Views: March 7, 2022

In the middle of a historic week for humanity, economics, markets and the current world order, war in Europe has quickly been modified to war on Europe. Read more from our Chief Investment Officer, Stewart Russell on how the significant events of the past few days and weeks will have a long-lasting impact on economies and markets. Read the full article here. 

Feb 28

Stew’s Views: February 28, 2022

All eyes are on Russia and Ukraine this week, as Putin’s incursion into the separatist areas in the eastern region of Ukraine has set off alarm bells around the world. Read more from our Chief Investment Officer, Stewart Russell as he shares his thoughts about the first round of sanctions from Europe and US.

Feb 24

Whitepaper: Fight Inflation Without Extending Duration

The rapid acceleration of digitization in fixed income trading, data and investments has propelled yield-driven investing forward, making portfolio insights and personalization must-have capabilities in today’s financial services landscape. Download our whitepaper to learn how YieldX’s range of potential solutions may help you and your firm navigate the current environment.

Feb 23

Stew’s Views: February 22, 2022

The roar of the bond bears is deafening. With annualized US CPI inflation running at 7.5% and nominal long-term government bonds with barely a 2% handle, it is easy to see why the bond market has very few friends. Read more of our Chief Investment Officer, Stew Russell’s thoughts.

Feb 17

Furthering the Fixed Income Revolution: FAQs

Recently, we hosted a webinar exploring the rapid digitization of fixed income trading, data and investments to help advisors understand how they can leverage YieldX technology to build more personalized portfolios at scale.  Ben Hurn, SVP of Channel Business Development, and Tom Bradley, Managing Director and Head of Fixed Income, walked through a demo of the YieldX platform and highlighted a number of use cases…

Feb 14

Stew’s Views: Week of February 14, 2022

Read more from our CIO, Stewart Russell as he covers how last year’s poor performance and the high-profile problems of Chinese developers like Evergrande, emerging market fixed income has become almost a four letter word amongst allocators. That being said, our optimization tools across many yield targeted portfolios currently advocate a small amount of exposure to emerging market high yield credit (EM HY).

Feb 7

Stew’s Views: Week of February 7, 2022

Read more from our CIO, Stewart Russell as the Winter Olympics began in Beijing, and not without geopolitical drama. In this volatile market environment for equities and fixed income, and public and private assets, we thought a current look at the asset market medal stand made sense—our optimization models point toward relative value in a variety of niches in the income universe.

Feb 4

Webinar: Surviving in Times of Inflation

Listen in on our webinar which covers the current high inflationary environment that is creating urgency for investors to put cash reserves to work–which traditionally means investing in bank accounts, money market funds and other short-term, low-yield investments. See how YieldX has created proprietary financial technology that allows users to create optimized portfolios that target yield or income level while minimizing risk and expenses.

Jan 31

Stew’s Views: Week of January 31, 2022

This week our CIO, Stewart Russell, highlights how the Federal Reserve (“Fed”) meeting was much more eventful and newsworthy than expected—and mostly because of what was not said. The usual post-meeting statement had no surprises, and indicated the central bank was comfortable with raising rates soon and stopping their quantitative easing in the first quarter.

Jan 31

Optimizer Bond Product Overview

See how YieldX’s Optimizer deploys proprietary optimization algorithms to identify opportunities within existing fixed income portfolios to improve the portfolio’s overall yield or reduce the portfolio’s volatility.

Jan 24

Stew’s Views: Week of January 24, 2022

This week, our CIO, Stewart Russell covers how the Fed meeting (January 25 and 26) has the potential to validate market pricing, or potentially (and unlikely) pivot from their recent hawkishness. US equity and fixed income markets have experienced indigestion since the “Fed” made their intentions clear in the latter part of 2021.

Jan 21

Optimizer Fund Product Overview

See how YieldX’s Optimizer deploys proprietary optimization algorithms to identify opportunities within existing fixed income portfolios to improve the portfolio’s overall yield or reduce the portfolio’s volatility.

Jan 12

Webinar: Furthering the Fixed Income Revolution

Watch our webinar to see how YieldX’s technology and investment management solutions eliminate those barriers by empowering financial services firms of all types and sizes to expand their fixed income product offerings, broaden their customer base, drive revenue and improve investor outcomes.

Jan 10

Monthly Commentary: January 2022

Times are changing, but fear not! Like many investors, we are wary of duration risk, and do not think investors are getting paid to own government bonds in a time when technical and fundamentals are weighing against the market support. Little to no yield with lots of duration risk is not a bet we want to make. Read more from our CIO, Stewart Russell.

Jan 7

Quant Risk Overview

See how our Quantitative Research team have developed a comprehensive approach to risk and portfolio optimization as part of our “No Quant” offering. We do that work so you don’t have to. We also ensure the application settings are aligned with each client’s needs. As part of onboarding, here are some of the trade-offs worth considering.

Jan 4

Whitepaper: Reflate Savings to Combat Inflation

Download our whitepaper to learn how YieldX’s Income Portfolio as a Service® (“InPaaS”) tool is designed to help investors reduce the risks and offset costs of living in today’s inflationary environment.

Dec 16

Monthly Commentary: December 2021

Inflation is high and rising, as excessively loose monetary and fiscal policies have combined to create an environment of “too much money chasing too few goods.” Given the political backdrop in the United States, and the dual mandate of the Federal Reserve of full employment and price stability, we think higher than desired inflation will be with us for some time to come. Read more…

Dec 12

Whitepaper: The World of “No Quant” Investing

See how by layering a comprehensive, modular quant-engine on the backend, YieldX offers a revolutionary “no quant” portfolio construction and optimization experience empowering all users, regardless of experience level, to maximize their outcomes, run complex scenario analyses with a single click and personalize their portfolios quickly and efficiently.