Bonds have been behind the world’s biggest buildouts, effectively financing the future throughout history. And while equity markets have remained front and center amid the ongoing artificial intelligence (AI) driven bull market, as hyperscaler capital expenditures (capex) close in on $1 trillion per year, what was mostly an equity market story may now be turning into a rates market story as well. Hyperscalers have routinely begun selling longer-maturity bonds, and smaller borrowers have also entered the mix. With capex guidance continuing to grow, the supply wave is likely far from over, and markets have broadly absorbed this issuance w

With today’s elevated volatility in equity and bond markets, we wanted to revisit one of the most popular investment strategies that has broadly served investors well over the last few decades — the 60/40 portfolio. Pioneered by Harry Markowitz and his modern portfolio theory (MPT) framework in the 1950s, the 60/40 portfolio — comprised of 60% stocks and 40% bonds — argued that diversification among uncorrelated asset classes provided the investor with the optimal portfolio allocation. Equities served as the growth engine, while bonds provided drawdown mitigation and predictable income; when combined, they should produce

The Federal Open Market Committee (FOMC) is meeting to deliberate on short-term interest rates and will announce their decision this afternoon. Expectations regarding whether the Federal Reserve (Fed) will raise rates again after September's increase have shifted dramatically over the past month. Markets moved from expecting another 25-basis-point hike immediately after September's meeting to largely anticipating no change at today's meeting, with attention shifting to December.

While the Fed does control short-term rates, they do not control the yield on the 10-year Treasury bond. This yield has been in the news late

Corporate America faces a higher bar this earnings season. Technology and artificial intelligence (AI) names remain in the spotlight amid ongoing spending, financing, and monetization scrutiny, while the macro backdrop remains clouded by rising energy prices and inflation pressures, higher borrowing costs, and heightened geopolitical risks. This begs several questions for markets. Is technology the only earnings driver? Are expectations too high? Can margins keep expanding? Here, we will discuss these three keys for the reporting cycle in our preview of third quarter earnings season.

Big Numbers but High Expectations

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