MacKay Shields LLC

"Be fearful when others are greedy and greedy when others are fearful." Warren Buffett. In this #MacKayMoments, Neil Moriarty analyzes what makes MacKay's Strategic #BondStrategy different, using last year's snap elections in Europe and the UK, which created market volatility, as an example.

From the March FOMC statement, to the Committee’s latest economic projections, to Chair Powell’s press briefing, the word of the day is “uncertainty.” Still, markets took a dovish signal from the suite of communications, with equities continuing to rally after the meeting, the Treasury curve bull steepening, and the DXY dollar index declining further. I believe this is because the latest projections show only a temporary effect of tariffs on the economy, and inflation in particular. This allows the Committee to stay on the rate cut path it laid out in December, including a median projection of 50 basis points of easing this year. Markets are discounting close to 60 percent odds of a rate cut by the June meeting. That strikes me as too soon – I think the Committee will be quite hesitant to cut rates at a time when tariffs are likely to be sending inflation readings higher. Please see our latest recording of Forward Guidance for more.

Hear from Neil Moriarty, Co-Head of Global Fixed Income, on how we navigate market volatility and position multi-sector bond portfolios for success. He shares his team's approach to duration, sector rotation, and security selection, and highlights opportunities in the high yield and securitized credit markets. https://bit.ly/3DRg3x9 ? ? #MarketVolatility #HighYield #CreditMarkets?

We’re thrilled to be co-sponsoring Institutional Money Kongress 2025 alongside MacKay Shields LLC, our leading expert in fixed income investing. The event is just two weeks away, and we’re looking forward to connecting with fellow industry experts to discuss current trends and developments in institutional asset management. #InstitutionalMoneyKongress | #InstitutionalInvesting | #InstitutionalInvestors

While I don’t buy into current recession angst, I do expect about a percentage point step-down in GDP growth from 2024’s 2.5 percent rate, primarily as a result of tariffs. But there is another factor at play - household spending looks especially vulnerable to the unfolding consumer confidence shock. As seen in the graph below, discretionary spending as a percent of total household spending is hovering near an all-time high. Much of this spending is likely concentrated among upper-income households. Should tariffs and overall economic policy uncertainty continue to weigh on the stock market, I suspect we will see a notable pullback in discretionary spending by these households, which will contribute to a weak GDP outturn.

#MacKayMoments | Building Strong Municipal Credit Research Matters In the first part of this series, Frances Lewis, Director of Research of MacKay Municipal Managers reflects on building a strong municipal credit research team over the years. Full time professional credit research has never been more critical in the municipal market and is the cornerstone of our investment strategy. #creditresearch #municipalbonds #womenininvesting

The current economic climate, reminiscent of the mid-1990s, reflects steady growth and narrow credit spreads. In seeking to enhance your investments, consider diversifying into sectors like agency MBS, ABS, CMBS, and corporate bonds. These markets can provide relatively higher yields and solid risk-adjusted returns, supported by strong corporate balance sheets and stable household finances. While risks like fiscal deficits and inflation persist, by carefully selecting credit exposure, we believe the additional yield can enhance income without taking on outsized risk.? An active management approach can help you navigate these challenges and uncover mispriced opportunities.? Read on to learn more https://bit.ly/4ijN97v? #FixedIncome ##Securitized #Diversification?

Never go against the family—and after 32 years of friendship and working side-by-side, the Co-Heads of MacKay Municipal Managers, both self-proclaimed fans of The Godfather II, could practically be called brothers. Watch the video to get to know them better, and to see their expertise in action, visit: https://bit.ly/435VnMa Robert DiMella | John Loffredo | #NYLIproud | #TeamNYLI | #MeetTheManagers | #FinanceCareers | #Munis | #MuniMarket | MacKay Shields LLC

It has been a whirlwind of economic policy pronouncements over the first few weeks of the Trump administration. In the latest edition of Forward Guidance, Steven Friedman and Michael DePalma cut through the noise and focus on one key aspect of President Trump’s policy agenda – import tariffs and their likely impact on the economy and fixed income markets. They also touch on investing amid policy uncertainty, and relations between the administration and the Fed. View more here: https://bit.ly/40GnjmX

#MacKayMoments | Using High Yield in an Uncertain Environment. Joseph Maietta, CFA looks at how asset allocators should be thinking about high yield bonds as part of their toolkit.?