An Investment Process for Any Rate Environment
Jason Haley, Managing Director, Investment Management Group
ALM First Financial Advisors
Shahid Sattar, Director, Advisory Services Group
ALM First Financials Advisors
In response to slower global growth expectations and a more dovish tone from the Fed in 2019, the fixed-income market is now pricing for rate cuts within the next 12 months. As such, some investors have professed a need for specific investments or strategies that perform well in a falling-rate environment.
First and foremost, depository managers are better served managing interest-rate risk at the balance-sheet level rather than through individual investment decisions. If, for example, model results show falling rates having a more detrimental impact on an institution’s value than desired, i...