The Wealth Enterprise Briefing

Higher interest rates have created new opportunities across fixed-income markets, including an area that may deserve renewed attention: municipal bonds.

In a recent episode of The Wealth Enterprise Briefing, WE Family Offices Managing Partner Michael Zeuner and Global Head of Macro Sam Sudame discuss why municipal bonds may offer attractive opportunities for U.S. taxable investors, examining the factors driving higher yields, the strength of municipal credit fundamentals, and the importance of managing interest rate risk.

What's Driving the Opportunity in Municipal Bonds?

Municipal bond yields have risen significantly, reflecting both higher interest rates and increased issuance by state and local governments. According to Sam, tax-equivalent yields on investment-grade municipal bonds have approximately doubled relative to their 10-year average, reaching around 8% at the time of the discussion.

Much of the increased issuance is tied to growing infrastructure and public service needs, including education, healthcare, transportation and utilities. As municipalities take on additional spending responsibilities, greater borrowing has contributed to higher yields.

Importantly, Sam notes that municipal credit fundamentals remain relatively strong. Most states operate under balanced-budget requirements, while rising property values, consumer spending and income tax collections have supported municipal revenues.

Balancing Higher Yields With Interest Rate Risk

While higher yields may offer attractive income and total return potential, municipal bonds are not without risk.

Michael and Sam emphasize the importance of duration, which measures a bond's sensitivity to changes in interest rates. Longer-duration bonds can experience greater price declines when rates rise, making shorter-duration exposure potentially more attractive in the current environment.

They also discuss the fragmented nature of the municipal bond market, which includes approximately 60,000 issuers and more than one million individual bonds. This complexity can create opportunities for experienced investment managers to identify securities offering attractive returns relative to their risks.

For taxable investors, municipal bonds may provide another source of income and diversification within a broader fixed-income portfolio. However, the appropriate allocation depends on individual tax circumstances, portfolio objectives and risk tolerance.

Listen to the full episode of The Wealth Enterprise Briefing to hear where they see opportunities in the municipal bond market and what investors should consider when evaluating this asset class.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

Strong economic growth and rising interest rates pulled financial markets in different directions during the third quarter. Capital spending supported business activity and corporate earnings, but a sharp increase in bond yields pressured valuations and limited stock market gains. Heading into Q4, WE Family Offices' Investment committee sees potential for broader equity participation if interest rates begin to stabilize. 

In this episode of The Wealth Enterprise Briefing focused on the Q4 investment outlook, Managing Partner Michael Zeuner and Senior Investment Manager Sam Sudame discuss the committee's views and their implications for portfolio positioning across equities, fixed income and real assets. 

Could steadier rates support a broader equity rally? 

The third quarter's rise in yields reflected strong demand for capital and a more restrictive Federal Reserve stance. A September rate increase followed Chairman Warsh's hawkish Jackson Hole speech, while geopolitical risks pushed oil prices higher. 

Sam believes the 10-year Treasury yield has approached a level consistent with underlying economic growth and inflation. If yields settle, even at elevated levels, pressure on equity valuations could ease and allow earnings growth to play a larger role in returns. 

Strong earnings growth and lower valuations support the committee's slight overweight to U.S. equities. If rates settle, equal-weight equity strategies, small- and mid-cap stocks could begin to perform better as the rally broadens. The committee continues to favor balance across investment styles, company styles and cyclical and defensive sectors. 

How does the outlook affect bonds and real assets? 

Stabilizing Treasury yields could also reduce pressure on fixed income. The committee maintains its preference for short- to intermediate-duration bonds, with the 10-year Treasury serving as a useful reference point for conditions in the broader bond market. 

In real assets, Michael and Sam cover: 

• Infrastructure: Power generation and data center construction continue to support the committee's overweight position. 
• Commodities: Demand for industrial materials supports an overweight, while Sam expects agricultural commoditites to benefit as El Niño becomes more prominent. 
• Real estate: The committe remains neutral. Valuations appear to have largely bottomed, and prices are beginning to recover, but higher rates continue to pressure capitalization rates. 

Inflation, geopolitical developments and the path of interest rates remain risks to this outlook. The committee expects continued capital spending to support economic growth through the fourth quarter. 

Listen to the full episode for Michael and Sam's in-depth discussion of the fourth-quarter investment outlook. If you would like to talk through how these views relate to your family's portfolio and long-term objectives, we welcome a conversation. 

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

U.S. Treasury yields have climbed sharply, with the 10-year Treasury reaching its highest level in 20 years. The move has raised questions about inflation, Federal Reserve policy and the potential effect of higher borrowing costs across the economy. 

In a recent episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner and Senior Investment Manager Sam Sudame discuss why much of the recent increase has come from higher real yields, reflecting stronger economic growth and a greater demand for capital. 

They discuss: 

·       Why real yields have accounted for most of the recent rise in Treasury rates. 

·       The relationship between economic growth, capital spending and inflation. 

·       How Federal Reserve policy affects short-term rates. 

·       Why fiscal concerns matter more for longer-term Treasury yields. 

·       The effect of rapidly rising yields on equity valuations and long-duration bonds. 

·       Why growth may support small-cap stocks, industrial commodities and commercial real estate. 

·       The pressure higher rates can place on homebuilding and gold. 

·       When borrowing costs could become high enough to slow economic activity. 

Higher rates do not necessarily signal economic weakness. Their effect depends in part on what is causing them to rise and how quickly the increase occurs. If you would like to discuss the role of interest-rate risk in your portfolio, we welcome a conversation. 

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

Emerging market debt has long carried a reputation for sharp swings, political uncertainty and sovereign defaults. Yet over the past year and a half, the asset class has outperformed U.S. Treasuries, high-yield corporate bonds and the broader U.S. bond market, even as geopolitical risks have increased. 

In a recent episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner and Senior Investment Manager Sam Sudame examine what may be behind that performance and what it could mean for fixed-income investors. 

They talk through: 

• Stronger fiscal and monetary policies across emerging markets. 
• Lower debt-to-GDP ratios than in many developed countries. 
• The role of inflation targeting, central bank independence and foreign exchange reserves. 
• Yields about 200 basis points above developed-market government bonds
• The political and economic risks that remain. 
• Why active management is vital in this market. 
• Where emerging debt may fit within a diversified income portfolio. 

Emerging market debt is not appropriate for every investor, but recent changes in policy credibility and fiscal discipline warrant a closer look. If you would like to discuss the role of global fixed income in your portfolio, we welcome a conversation. 

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

Long-dated U.S. Treasury yields recently reached levels not seen in nearly 20 years, drawing renewed attention to federal debt, fiscal deficits and the direction of interest rates. While the Treasury has signaled plans to buy back more long-term bonds in an effort to ease yields, questions remain about how much influence those purchases can have over time. 

In the latest episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner and Senior Investment Manager Sam Sudame examine the forces behind the move in long-term yields and what they may mean for investors. 

They discuss:

• Why $40 trillion in federal debt has brought greater scrutiny to the 30-year Treasury market
• Why Treasury efforts to lower long-term yields may have limited staying power
• How capital needs in the U.S., Europe and Japan are increasing demand for money and pushing real yields higher
• How fiscal concerns can affect both the dollar and the term premium on long-dated Treasuries
• What higher long-term rates may mean for duration, gold and international assets in a diversified portfolio

Michael and Sam separate the constructive signals of capital investment and economic growth from the concerns reflected in the long end of the Treasury curve. If you have any questions about how interest rates, currency movements and international markets may affect your portfolio, please reach out to us. 

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

How can clearly defined family values help guide decision-making and support wealth across generations?

According to Mel Lagomasino, CEO and Managing Partner at WE Family Offices, making family values explicit can help family members understand what drives their decisions, find common ground and address differences before they create conflict.

In this episode of Inside the Family Office, Mel continues her conversation with fellow Managing Partner, Michael Zeuner, building on their earlier discussion about the characteristics shared by families that successfully sustain wealth across generations.

The conversation focuses on the first of three areas Mel identified: family values. They discuss why values matter, how families can make them explicit and how those values ultimately shape decisions about investments, distributions and the management of family wealth.

They Make Family Values Explicit

Individuals who create significant wealth often have a clear set of values that helped shape their success, whether those values center on hard work, entrepreneurship, stewardship or other principles. But those values are not necessarily shared in the same way by subsequent generations.

As decision-making moves from one generation to the next, differences can emerge among siblings and other family members. Making values explicit gives families a way to understand those differences and identify the principles they share.

Rather than assuming everyone sees wealth and responsibility in the same way, families can use these conversations to establish a common framework for making decisions together.

Values Shape Wealth Decisions

Family values are not simply statements of what matters to a family. They can directly influence how wealth is managed.

For example, one family member may prioritize long-term growth for future generations, while another may place greater importance on current cash flow. Differences in lifestyle expectations can also influence how family members think about distributions.

Making these priorities clear helps families understand why decisions may differ and provides a framework for establishing investment and distribution policies that reflect the family's shared values and objectives.

Differences Don't Have to Divide a Family

Not every family member will share the same values or objectives, and making those differences explicit can help determine when shared decision-making makes sense.

Mel and Michael discuss situations where significant differences among siblings may make separate decision-making more constructive than forcing family members to remain aligned around investments, cash flow or other assets.

Separating assets does not have to mean separating the family. When differences are acknowledged rather than suppressed, family members may be able to pursue different financial objectives while maintaining their personal relationships and family connections.

Why Values Matter to Long-Term Sustainability

As wealth passes from one generation to the next, families must make decisions that reflect different experiences, priorities and expectations. Making values explicit gives family members a shared language for discussing those differences and understanding the decisions that follow.

For families working toward long-term wealth sustainability, the goal is not to eliminate differences, but to understand them. Identifying areas of common ground and creating structures can allow family members to make thoughtful decisions together or separately when appropriate.

Key Takeaways

Making family values explicit can help families:

• Create a shared framework for decision-making
• Connect investment and distribution policies to family priorities
• Recognize differences in values before they create ongoing tension

Understanding and articulating family values is a foundational part of building structures that can support both long-term wealth sustainability and family harmony.

If you'd like to discuss how these principles apply to your family's wealth management and governance structure, please be in touch.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

The scale of capital investment flowing into AI infrastructure has no recent precedent in absolute dollar terms. Yet when measured as a percentage of GDP, the current spending cycle sits at 1.5%, well below the peaks seen during past industrial booms like the railroad era or the telecom build-out. Understanding where this cycle fits in historical context, and whether current market volatility reflects genuine risk or the discomfort of absorbing massive earnings growth, matters for how investors think about AI exposure today.

In the latest episode of The Wealth Enterprise Briefing, Michael Zeuner and Sam Sudame look deeper into the AI capital spending boom, examining both the real earnings growth backing the rally and the structural questions about whether this level of investment can sustain returns.

They cover:

• How $1 trillion in hyperscaler spending (up from $250 billion in just three years) is reshaping markets and volatility.
• Why Samsung's 1100% profit jump actually validates the stock moves, hype or not.
• Whether money is really just rotating in circles within the AI sector.
• What railroads and the telecom boom teach us about where this cycle goes next.
• When free cash flow bounces back, and why 2028 might be the key year.
• Whether 80% sales growth proves companies are converting potential into paying customers.
• How this boom could reshape margins and productivity across the entire economy.

If you're thinking through how this AI capital cycle fits into your overall portfolio strategy or have questions about positioning through this period of volatility, we'd welcome a conversation.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

The term "reflationary growth" describes an environment where economic growth is solid and inflation, while still above the Fed's target, is stable and well-supported by the underlying fundamentals. It is also, by the firm's assessment, the environment we are in today.

In the latest episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner and Senior Investment Manager Sam Sudame examine what that means in practice, how the current period differs from the two distinct economic environments that preceded it, and what the data actually shows about whether reflationary growth conditions remain intact.

They talk through:

• How the economic period from 2010 to 2020 differed from the stimulus-driven surge that followed, and what distinguishes both from the current environment.
• Why the shape of the U.S. Treasury 2s/10s spread, currently at a positive 40 basis points, matters as a signal of where the economy stands.
• What federal tax receipts, PMIs and the breadth of the U.S. leading economic index are currently indicating.
• Why capital expenditure has become the primary engine of the expansion, and what it means that real CapEx to GDP is above 15%, the highest level in more than 60 years.
• How to square market skepticism around AI-related stocks with semiconductor earnings up 100% in the first half of this year.
• What the weight of data is saying today, and what WE is watching for that would signal a shift.

If you have questions about how WE Family Offices is thinking about the current economic environment and what these conditions could mean for how your portfolio is constructed, please be in touch.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

The first half of 2026 was historic by almost any measure. Markets absorbed a significant energy shock, navigated a stagflationary scare, and still delivered strong returns. The question now is what's underneath that resilience, and whether the conditions that produced it can carry into the second half of the year and beyond.

In the latest episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner and Senior Investment Manager Sam Sudame walk through WE Family Offices' second-half outlook, organized around three themes from the firm's latest asset class highlights.

They discuss:

• Why the investment capex cycle was the primary driver of market resilience in H1, and why that cycle of growth shows no sign of slowing.
• What a shift from a stagflationary to a reflationary environment means for equity markets, and why the broadening of the rally matters as much as the headline return.
• Why earnings growth in 2026 is not just a technology story, with 8 of 11 S&P 500 sectors expected to deliver double-digit growth and small caps delivering their best first half in 35 years.
• Where the speculative pockets in the market are, and why the overall picture on sentiment, liquidity and valuations still reads as fairly neutral.
• Why inflation is the risk Sam is watching most closely, and what a stickier-than-expected inflation environment could mean for the Fed and for rates.
• How to think about fixed income positioning in a world where rate cuts are off the table and duration risk deserves caution.

If you'd like to discuss what the second-half outlook means for your portfolio, please be in touch.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.

Initial public offerings are back in the news. Between the recent SpaceX offering and several high-profile, venture-backed companies preparing to list, investors are paying close attention to the public markets again after a quiet multi-year stretch.

In this episode of The Wealth Enterprise Briefing, Michael Zeuner and Deputy CIO Matt Farrell use the renewed interest in IPOs to explain how venture capital investments progress from early funding through a potential public listing, how risk changes across a company's lifecycle and why long-term success depends on maintaining a disciplined investment program rather than attempting to time the market.

They discuss:

• The actual mechanics of the IPO timeline and what happens during the institutional roadshow
• Why post-listing insider lockups and liquidations can trigger sharp stock drawdowns
• How investment risk changes as companies mature from seed stage to private equity
• What the power law means for fund returns when a single company drives the outcome
• Why periods of limited distributions can tempt investors to pause commitments, even though consistency remains important
• How a consistent annual allocation strategy across different vintages helps avoid missing generational opportunities

For those with existing venture allocations or who may be looking to establish a private investment program, this conversation provides a realistic look at how early-stage assets transition to the public markets.

If you'd like to discuss how venture capital and private market investments fit into your overall portfolio, please contact us.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.