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We are now officially in the last quarter of the year, and some would say time flies when you are having fun. Although, many fixed income investors would probably beg to differ and say the last two years were not fun due to market volatility. How quickly we forget the opportunities the volatility presented!

The Federal Reserve hiked its benchmark interest rate 11 times between March 2022 and July 2023, held them steady at a historic high for more than a year and finally announced rate cuts in September of this year. As we approach the end of 2024, now would be an ideal time for investors to begin to review their portfolios and reassess the...

As the landscape of fixed-income investments continues to change, the upcoming maturity of NROCC (National Road Operation and Construction Company Ltd.) 9.375% bonds presents both opportunities and challenges for investors as they find themselves at a crossroads concerning their next steps. With the maturity date approaching in November 2024, it is crucial for bondholders to devise effective strategies for reinvestment. This juncture provides an excellent opportunity for investors to reassess their strategies, consider market dynamics, and make informed decisions regarding reinvestment.

Investors in the NROCC 9.375% bond will remember that...

In a decisive move aimed at preserving economic expansion, the U.S. Federal Reserve (Fed) recently cut its policy rate by a larger-than-expected 0.5% or 50 basis points (bps), bringing the federal funds target range down to 4.75%-5.0% from 5.25%-5.5%. This marks the first reduction in four years, signalling the beginning of a new easing cycle. The rate cut is an important step designed to gradually remove restrictive monetary conditions and ultimately reach a neutral rate of approximately 2.9%. The rate adjustment is widely viewed as a proactive approach, following the most aggressive tightening campaign in four decades, and it is likely to...

When life changes, money inevitably changes too. Major life events often prompt reevaluating financial priorities, strategies, and habits. Understanding the intersection of life transitions and financial adjustments is crucial for maintaining financial health and achieving long-term goals. In our recent client survey, many of our respondents said that they chose to invest with Sterling Asset Management after a major life-changing event. We have also discovered that people view financial planning as a simple process and are not prepared for these changes. In reality, there is no cookie-cutter solution to the number of financial challenges that...

In the ever-changing landscape of the financial market, investors are often faced with the challenge of navigating through the complexities of various investment options. In last week’s article, Eugene mentioned the critical concept of bond duration, and noted that investors should pay keen attention to this when looking to build a solid portfolio. With the Federal Reserve signaling its intention to reduce interest rates, the concept of bond duration has become even more important for investors to grasp as it will help in making solid investment decisions to maximize yields and reduce risk.

But what exactly is bond duration and why does it...