The Factor-Based Investing Channel

Income Investing for a Rising Rate Environment

Advisors face two problems in today’s market: how to find yield in a low interest rate environment and how to protect against rising rates. Join experts from XA Investments and Octagon Credit Investors and learn ways to position clients’ portfolios to take advantage of rising rates. We’ll discuss the benefits of floating-rate loans and collateralized loan obligations (CLOs) and how best to access them.

Participants will learn about:

  • Rising Rates and Floating-Rate Credit—Floating-rate credit will fare better than traditional fixed income when interest rates rise.
  • Accessing Institutional Alternative Credit Strategies—Learn what to look for in these alternative investment opportunities and the importance of an experienced manager.
  • CLO Debt and Equity Investments—See the portfolio benefits of CLOs by understanding their historical performance, current yields and correlations to traditional asset classes.

More Market Turbulence: Risks Are Rising

Yesterday, we had another breakdown in the stock market. Major indices dropped for the third day out of four, and they were down this morning. Once again, we are getting close to the long-term trend line, the 200-day moving average, which is where I personally start to pay attention.

Dangerous Yield Curves Ahead?

There’s new rumblings about an inverting yield curve ahead. Is it time to panic? Time to stick our heads in the sand? Or time to think sensibly?

Second Quarter Hedge-Fund Strategy Outlook: K2 Advisors

In their second-quarter (Q2) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams share their views on why investors should not fear the return of market volatility—and why it may unlock opportunities for active managers. We believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.

The Most Important Detail From the Flash PMI Report is About Inflation

Among yesterday’s data releases was the widely followed ‘flash’ PMI report produced by Markit, which showed that the Manufacturing PMI increased to the highest level since the 4th quarter of 2014. Unlike the final report, which gets published on the first day of the month, the advanced report lacks details on specific components.

Strategic Income Outlook

Written in 1606, Shakespeare’s words are just as relevant today. Tweets and eye-catching headlines dominate the news cycle and many conversations, but when you parse them for impactful content, you realize it’s mostly just white noise.

How Washington Will Spend Your Taxes in 2018

Today we’re going to look at how Washington spends our tax dollars. Specifically, we’ll look at a new report which shows how the federal government spends the income tax paid by the average family – and how they spend even more than what’s collected to create massive budget deficits year after year after year.

America’s Weak Case Against China

The US Trade Representative appears to have made an ironclad case against China in the so-called Section 301 report issued on March 22. But the report – now widely viewed as evidence justifying the Trump administration's recent tariffs and other punitive measures against China – is wide of the mark in several key areas.

Mr. Market Grasps the Esoteric

We are reminded of Ben Graham’s Mr. Market analogy. In his analogy, the stock market is like having a business partner (Mr. Market) who offers to either buy or sell his half of the business to you, based on how the business is doing.

Equity Investment Outlook

During the first quarter of 2018, the stock market, as measured by the S&P 500 Index, had a total return of minus 0.8%. Despite the roughly flat performance for the quarter, volatility spiked to levels not seen in several years.

Yes. It's a Bubble. So What?

With sky-high valuations in the US stock market, and what we believe is a tech bubble that has dangerous implications for other areas of the market, we suggest four actions investors can take now to avoid the inevitable bursting of the bubble, and which will likely benefit their portfolios’ long-term performance potential.

Don’t Fear the Yield Curve Reaper

The yield curve has flattened significantly recently and has elicited headlines of impending doom, heightened recession risk and investor consternation…is the worry overdone?

Home Price Surge Continues in February, Led by Western States

With today's release of the February S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index were up 0.83% month over month. The seasonally adjusted national index year-over-year change has hovered between 4.2% and 6.3% for the last two-plus years. Today's S&P/Case-Shiller National Home Price Index (nominal) reached another new high.

FHFA House Price Index: Up 0.6% in February

The Federal Housing Finance Agency (FHFA) has released its U.S. House Price Index (HPI) for February. U.S. house prices were up 0.6 percent on a seasonally adjusted nominal basis from the previous month. Year-over-year the index is up 7.2% (nonseasonally adjusted). Seasonally adjusted, the index is up 5.29% year-over-year.

Health Savings Accounts: The Intersection of Retirement and Health Care

The increasing costs of health insurance borne by employees and employers alike has spawned a variety of plans and strategies to help manage the expenses. Among these are health savings accounts (HSAs), which first came onto the scene in 2003.