Highlights
Navigating the Storm: Embracing Volatility as a Driver of Value
When it comes to investing, volatility isn’t just a buzzword – it’s an inherent and powerful force in capital markets. While many investors fear volatility as a sign of risk or instability, it should instead be embraced as a catalyst for opportunity. Volatility creates ...
Behavioral Finance: Hidden Forces Behind Investing
Investing is not just about numbers, market trends, or economic forecasts. It’s also deeply influenced by human psychology. Behavioral finance, a field that examines how psychological biases impact financial decision making, plays a significant role in how investors react to market changes. At CapRidge ...
Asset Allocation: Recalibrating Risk
The Evolving Landscape In today’s market environment, effective asset allocation requires a discerning view of risk and return. For investors seeking to balance portfolio risk while positioning for future returns, understanding the relative value of equities and credit is critical. While equities have historically ...
Duration and Interest Rate Risk: A Rule of Thumb
Interest rate risk is a key factor to consider when managing an investment portfolio, especially in a volatile economic environment. Changes in interest rates can have an impact on the value of various asset classes. This risk is particularly relevant for fixed income investments like ...
Preferreds: An Unfamiliar Corner of the Market
What Are Preferred Securities? Preferred securities are a hybrid asset class, combining elements of both stocks and bonds. They provide income like bonds but represent ownership in a company like stocks. Preferreds rank higher in the capital structure than common equity, though they remain ...
Understanding Spreads: A Measure of Risk and Opportunity
Compensation for Risk The bond market consists of various sub-asset classes, each reflecting different characteristics and types of risk. One key risk for investors is credit risk – the risk that an issuer may fail to meet its debt obligations, either by missing interest ...
CLOs: Expanding Access and Participation
The Evolving Landscape The CLO market has undergone a significant transformation in recent years. Initially, access was limited to institutional investors who had to navigate complex structures to participate. Since then, the asset class has grown not only in size but also in popularity, ...
Enhancing Core Bond Portfolios with Credit
Enhancing Core Bond Portfolios with Credit Adapting to the Market Bonds have historically served as a key component in portfolios, offering investors a steady stream of income and diversification benefits. However, the bond market contains a variety of sub asset classes, each with distinct ...
Tax-Loss Harvesting… All Year Round
Tax-Loss Harvesting… All Year Round The Crux of It Tax-Loss Harvesting is a strategy performed by investors and advisors to manage taxes more effectively. The goal is to reduce the investor’s tax liability for the current year by realizing losses that can 1) offset ...
Muni Bond Ladders: An Oversimplified Approach
A Traditional Approach Municipal bonds are a popular investment option for individual investors. They are primarily sought after for their tax-exempt income and relatively low volatility. One way that investors access the muni market is via laddered portfolios. Muni bond ladders are passive ...