Bank Failures Shine Light On Interest Rate Risks
“We want to make sure that the troubles that exist at one bank don’t create contagion to others that are sound.” — Treasury Secretary Janet YellenSource: The Wall Street Journal, March 12, 2023 Financial markets reacted turbulently to the collapse of Silicon Valley Bank (SVB) on March 10, 2023, followed two days later by the […]
Rising Rates Join Long List of Housing Dilemmas
In this environment, prospective homebuyers, renters who must renew a lease, or anyone looking for a new place to live could find themselves between a rock and a hard place. Homebuyers braving the hot U.S. housing market have run headlong into a striking transition. The average interest rate for a 30-year fixed mortgage jumped from […]
Managing Bond Risks When Interest Rates Rise
Rising interest rates should not affect the return on a bond you hold to maturity, but may affect the price of a bond you want to sell on the secondary market before it reaches maturity. Mutual funds, ETFs, and UITs are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before […]
What Do Rising Interest Rates Mean For Your Money?
Although rising interest rates make it more expensive for consumers and businesses to borrow, retirees and others who seek income could benefit from higher yields on savings accounts and CDs. On March 16, 2022, the Federal Open Market Committee (FOMC) of the Federal Reserve raised the benchmark federal funds rate by 0.25% to a target […]
Inflation: What’s Next?
IMPORTANT DISCLOSURES Dightman Capital does not provide tax or legal recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be […]
The Fed Pivots to Fight Inflation
On December 15, 2021, the Federal Open Market Committee (FOMC) of the Federal Reserve System made a significant shift in monetary policy in response to rising inflation. The Committee accelerated the reduction of its bond-buying program in order to tighten the money supply and projected three increases in the benchmark federal funds rate in 2022, […]
Rising Inflation: Where Will It Go from Here?
Though all economists expect inflation numbers to rise in the near term, there are different views on the potential long-term effects. In March 2021, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6%, the largest one-month increase since August 2012. Over the previous 12 months, the increase was 2.6%, the highest year-over-year inflation […]
Fed Forecast: Low Rates Ahead
Two Important Fed Policy Shifts. What you need to know. IMPORTANT DISCLOSURES Dightman Capital does not provide tax or legal recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a […]
Reopening The Economy
This commentary touches on the following subjects.: Reopening the Economy C19 Infections, Hospitalizations, Deaths Vaccine Development Monetary Policy and Fiscal Stimulus The Bifurcated Stock Market It has been 84 days since the U.S. stock market started the C19 market sell-off. During that time a great deal of new information has come forth to help us […]
REPO Market Update
Back in September the market received a warning from the REPO market where interest rates unexpectedly spiked higher. Before describing what may be interfering with REPO market operations, I want to point out that signals from the bond market, while important, generally represent a time horizon of a year or more. Unlike other technical, fundamental, […]
