Throughout history, pandemics have created structural changes: the fall of empires, the rise of Christianity, the collapse of economic systems, peace agreements among nations and societal introspection A Change is Gonna Come1 Throughout history,...
CrossingBridge Insights
CrossingBridge Insights is our opportunity to share our thoughts on interesting trends and data points through our Quarterly Commentaries, Market Observations, recent news, and random musings. We hope you enjoy and we welcome your feedback.
In response to the onset of the COVID crisis in late March 2020, Congress passed the CARES Act, which directed cash payments to nearly 80% of American households, providing temporary peace of mind for those with limited savings and living paycheck...
The U.S. government’s aggressive stimulus in response to the COVID-19 crisis, while necessary, has been like drawing a bubble bath for the financial markets. The $1.9 trillion American Rescue Plan and an anticipated $2.0 trillion infrastructure...
Perception of a post-COVID economic rebound and 2021 optimism became a financial market reality in 2020, with robust bullishness across most asset classes from stocks to bonds to bitcoin. This is a classic illustration of “reflexivity” in which a...
Scientifically, 10% of an iceberg is visible while 90% of its volume is unseen, below the water’s surface. In the U.S. equity and fixed income markets, the dramatic rebound from the March trough brought this to mind as there is a lot more going on...
Through an ongoing series of rule changes related to illegal contact, primarily intended to protect players, the NFL has also made the game more exciting. As a result of more stringent pass interference regulations, the game has tilted in favor of...
The economy was essentially “switched off” in unprecedented fashion. A significant portion of small and large businesses has been virtually closed with their revenues reduced to practically nothing. With the country locked down under “shelter in...
General consensus indicates “clear skies ahead” for 2020. Nonetheless, the Leading Economic Indicators (“LEIs”) are decidedly mixed. In this environment, we are certain that selective opportunities will arise as we pursue active patience.
We do not have a strong view on whether economic growth will continue or a recession is imminent. Many investors are also uncertain. Hence, we are seeing a widening disparity in credit quality, which requires a fixed income investor to be...
Zombies! Coming to a fixed income portfolio near you! They eat your capital to survive! “Zombie companies”[1] were defined in a recent Bank for International Settlements (“BIS”) study[2] as non-financial companies that are over 10 years old and that...