U.S. Bancorp Asset Management

The current inversion in the yield curve has resulted in higher yields on shorter-term investment options relative to longer-term investments. While these higher short-term yields may be attractive today, longer-term strategies have historically outperformed across a variety of interest rate environments. In our latest piece, we discuss the typical interest rate cycle, importance of portfolio segmentation, long-term considerations for investment strategies, and how investors should prepare for likely Fed rate cuts. https://bit.ly/3XmfAsw

With a year removed, the benefit of hindsight, and a broader view of historical context, it has become apparent that the string of regional bank failures in the spring of 2023 did not represent the existential systemic threat it seemed to at the time. In our latest blog post, we examine the history of bank failures and consolidation and conclude that it is part of the natural order of the industry, with years with no reported failures exceptionally rare. https://bit.ly/46TLz7E

Mortgage-backed securities (MBS) are created by repackaging residential or commercial mortgage loans into securities that can be purchased by institutional and other investors. In this piece, we will introduce agency MBS created from residential mortgages. These high-credit quality instruments can play an important role in a client’s investment portfolios from both a diversification and yield perspective. https://bit.ly/4fB9AEn

In USBAM’s Quarterly Portfolio Manager Commentary, we share our thoughts on how the market faired in the second quarter and other current impacts on the bond market. https://bit.ly/4f4gQZr

Over the last year, amid steady reporting about — and tracking of — inflation and its effects, you’ve no doubt seen references to “potential action by the Federal Reserve.” These actions center on projections of whether the Federal Reserve (Fed) is inclined to take steps to adjust short-term interest rates to address concerns about an overheating economy. In our latest blog post, we discuss the Fed’s role in our economy and the tools it uses to influence interest rates. https://bit.ly/4edexTu

During its May meeting, the Federal Reserve voted to leave the federal funds target rate unchanged at 5.25% to 5.5%. USBAM’s Chief Investment Officer, Jim Palmer, shares his thoughts on what this means in our latest Quick Insights blog. https://bit.ly/4e7JwQT

We expect a wave of small to mid-sized acquisitions by the large pharmaceutical companies in our coverage universe in the next several years. In our latest blog post, we discuss the main drivers of upcoming mergers and acquisitions and what this means for the pharmaceutical industry. https://bit.ly/4bETuXU

U.S. Bancorp Asset Management (USBAM) is seeking an Institutional Sales and Relationship Manager that will strengthen the USBAM relationship with new and existing institutional clients, primarily for Money Market Mutual Funds. Qualified applicants should have knowledge of capital markets and fixed-income securities, and experience working with institutional investors. The role offers a hybrid/flexible schedule. To apply, use the link here: https://bit.ly/3U6TMPS

In USBAM’s Quarterly Portfolio Manager Commentary, we share our thoughts on how the market faired in the first quarter and other current impacts on the bond market. https://bit.ly/3vLhVUd

With interest rates at some of the highest levels seen in quite some time, investors are contemplating restructuring portfolios to take advantage of the attractiveness of current yields. In our latest piece, we discuss some considerations regarding this potential restructuring. https://bit.ly/4bBfBiD