How are you modifying your approach to fixed income ? | 27 March 2020

As we build up resilience to handle the major events and swings in the market, we experienced the Fed’s extensive stabilizing efforts this week to fixed income liquidity and the Congressional  approval of the CARES Act that will provide temporary fiscal support for American companies, business owners and consumers.

Advisors are continuing to engage their clients to help communicate a number of these efforts and prepare for the road to recovery. While we’re hearing much of the sentiment is focused on opportunity, there remains uncertainly for many who are approaching or in the midst of their decumulation stage.

We were poised this week to release several alerts around the fixed income markets and we will continue to provide as we see risk and opportunities within the mutual fund and ETF universe.

Let’s commence the Week in Review –

Fed announces purchase program that will provide support for Fixed Income ETFs

We welcomed the emergency liquidity relief from the Federal Reserve to bolster the trading activity in the fixed income markets. While we anticipate that the Fed will be proactive, the maze becomes more complex for creating solutions for the investor community. Our team released some of our timely research to help advisors with investment selection.

Tactical Alert – Fed Will Buy Bond ETFs

As we’ve become accustomed to potential fund closings, the drawdown environment creates greater prevalence and we highlighted here several situations and where better alternatives can be found.

Tactical Alert – Adjusting to ETN and ETF Closures

This is an exceptional time to consider reviewing ETF alternatives fro client scenarios where are potential capital gain/loss opportunities for clients. We’re available to share our work to help uncover potential opportunities that reduce cost and find greater efficiency through available capital.

Breakpoint Alerts

We still have a limited number of investor spots available to our invitation-only Breakpoint Alerts | Forecasts, our risk and regime forecasting that reflects stocks, FX, crypto and ETF movements, to help the active investors stay on top of these rapid market changes and foster investment decisions.  

Please let us know if you are interested.

Alternative resources for your COVID-19 Resource Center

We plan to add new resources each week that we have reviewed which exhibit the environmental and economic impact to the U.S. and global systems.

Our advisor community continues to work at gathering better information to assist with their research process and narrative efforts for this unprecedented period so we always welcome your suggestions.

Posts

Here are the posts most read on Portformer.com:

Question of the Week:

What type of information are you communicating to your clients other than financial or market-related ?

Please share with us via our chatbox at Portformer or reply to this email and the information will remain confidential.

What we’re Reading:

Here is a snapshot of the best articles compiled and read by our team:

Analyzing the CARES Act -From rebate checks to small business relief – A detailed review from Michael Kitces on all aspects  the relief bill.

Serving a Larger Client Base through Wealthtech – Access to a podcast recorded prior to the outbreak that discusses providing better and more personalized advice to investors.

Why Many Bond ETFs Now Trading a Discount – a commentary from one of the best known ETF traders in the industry on fixed income dislocation.

Places that a COVID-19 Recession Could Hit the Hardest – Washington think tank article on those metro areas that could be impacted the most from a recession.

Shelter in Credit – A research article from GMO on the risks in today’s high yield markets.

The Critical Importance of Anticipatory Intelligence in a Complex, Uncertain World – A commentary from a risk strategist on the importance of intelligence to evaluate global risk events.

If you have any difficulty accessing these articles and papers, please reach us through our website or directly at john.dibenedetto@portformer.com.

You can find us on social media at Twitter @Portformer and LinkedIn at Portformer.

These are complex and challenging times and it’s critical to remain closer to your community.

Stay safe,

Sean Kruzel and the Portformer™ Team

John DiBenedetto

Sales | Business Development | Customer Success

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