WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

Comparing Central Banks with Macquarie Allegiance

Posted by Valerie De Vol | IACCP®, Chief Operating Officer

March 28, 2011

Money manager Macquarie Allegiance compares the actions of the US, EU and Chinese central banks over the last decade and how certain trends may be fading. "A lot of attention is on the Federal Reserve policy outlook, unsurprisingly because the economy is proving strong and the second round of quantitative easing is scheduled to end in June 2011. However, an international perspective would suggest that the Fed is no longer leading global policy; in fact the Fed is likely to be the next to last major developed country central bank to tighten monetary policy."

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Allegiance Capital

Higher Treasury Yields Likely - Macquarie Allegiance

March 2, 2011
Money manager Macquarie Allegiance's February newsletter details why they think Treasury yields will continue to increase, especially in the 10 year Treasury. "Our analysis shows that the improving trend of the economy has been pressuring Treasury yields higher. The current macro momentum suggests we are heading for the third test of 4.0% on the 10Y yield in this cycle. However, inflation pressures in the US remain low despite the added pressure coming from surging commodity prices. We conclude that the persistence of a large negative output gap is helping to contain inflation pressures." Download Full Commmentary Here [+] Read More

Macquarie Allegiance's 2011 Rollercoaster Ride

February 3, 2011
Money manager Macquarie Allegiance's January commentary reviews 2010 and provides their outlook for 2011. Graham McDevitt, the Co-Chief Investment Officer, believes the 'ride' this year will be significantly different compared to the rollercoaster of 2010. Read about their themes and risks facing investors in 2011 in this month's commentary. Download Full Commmentary Here [+] Read More

Happy Bond Investors with Allegiance Capital Management

October 7, 2010
Fixed income remains our asset class of choice. With the Fed signaling its willingness to unleash QEII and a faltering growth outlook, Treasuries, we suspect will remain underpinned at the current low yields. With sound credit fundamentals, credit should continue to provide attractive yield. That said, with yields now at historic lows and spreads not too far from historic averages, the outsized returns from fixed income will be increasingly limited going forward. Download Full Commmentary Here Get Free Research Reports about Allegiance Capital [+] Read More

Macquarie Allegiance - March 2010 Fixed Income Commentary

May 18, 2010
In our January publication, we stated that 2010 may be the year of duration and have warned clients of the need to manage duration risk. The Barclays Aggregate Index has recently delivered two months of negative returns: -1.56% in December 2009 and -0.12% in March 2010. These negative returns are being driven by duration, as 5 Year Treasury yields have risen 54bps from the end of November to the end of March, while the Barclay’s Corporate Index has actual spreads tightening from 172bps to 150bps over the same period. So, fundamentals matter. This is why we are very attentive to the trend of recent economic data. Download Full Commmentary Here [+] Read More