U.S. inflation is at its highest level in four decades and making investors nervous. In episode #11, we discuss the mechanics of a commonly known inflation hedge, Treasury Inflation-Protected Securities, or TIPS, and analyze how these fixed income instruments perform in inflationary environments relative to alternative hedges.

In this episode, Merganser’s CIO, Andy Smock, reviews the impact of inflation on fixed income portfolios. He unpacks possible reasons for what’s driving recent price increases, and why interest rates are moving in the opposite direction. We end by discussing how the team at Merganser is shifting portfolios to insulate against these possible risks. 

In this episode, Portfolio Manager and Chief ESG officer, Jennifer Wynn, discusses Merganser’s ESG initiatives broadly at the firm and within the investment process. Deputy CIO and Portfolio Manager, Dave Fishman, explains the state of structured products as it relates to recent issuance patterns across sub-sectors.

We are now over a year into the pandemic. Are banks well positioned? In episode 8, we compare The Great Lockdown versus The Great Financial Crisis of 2008 from a banking perspective.

Risk assets continue to notch gains courtesy of investors’ optimism that COVID-19 vaccines will be an accelerant to growth next year. In episode 7, members of the Merganser Investment Team parse various economic indicators in an effort to uncover clues about the health of consumer spending and US business 

In Episode 6, Peter Kaplan, Head of Structured Products at Merganser shares his perspective on the ABS market and the outlook for performance and liquidity in the most recent market cycle.

In Episode 5, David Fishman, Deputy CIO speaks with a retail industry expert to understand how the current pandemic has accelerated certain trends and outlines why investors should be paying attention.

Recent data is showing some signs of stabilization, however, COVID-19 case resurgence combined with lofty risk asset prices leaves us more circumspect about certain areas of the market. 

Following a risk-on second quarter, we pause to reflect on fixed income valuations, the state of the economy and the impact of recent stimulus measures

Financial market performance and economic fundamentals were at odds in Q2 2020. Markets rallied hard despite continued deterioration in the underling fundamental data, both at the company level and in the broader economy.  The single most important reason for the divergence was Fed intervention.  Since the last podcast three weeks ago, markets took on a more “risk off” tone in equities and rates while investment grade spreads held in much better.