90 Great Years
Howe & Rusling Team
December 30, 2020
Where we’ve been, and where we’re headed: Howe & Rusling celebrates its 90th anniversary!
Where we’ve been, and where we’re headed: Howe & Rusling celebrates its 90th anniversary!
The four most powerful words in the universe of bonds are “full faith and credit.” These words apply to government Treasury bills, notes, and bonds whose timely interest and principal payments are backed by an unconditional guarantee from the United States Government. Since Treasury securities are backed by the full faith and credit of the government, they are referred to as “risk free” securities. The government cannot default on its obligations, as it has the power to levy taxes or print more money to repay its debt. For this reason, the interest rate on the 10-Year Treasury note can act as the benchmark rate for other fixed income securities which carry some level of default risk.
Finishing the third quarter, we can all look back and remember it has been ten years since the financial crisis and the beginning of the Great Recession.
As we finally say goodbye to winter in Rochester, will we welcome back the bear after a long, long hibernation? This feels like a possibility, as the bull market run may have hit highs in January that we won’t be seeing again for a while
By now, everyone should be reacquainted with the term volatility. For the first month of the quarter, it seemed as though the trajectory of interest rates was up, up, up in almost a straight line.