White Papers

Fed Monetary Policy: Too Easy for Too Long

Standish Chairman Emeritus Ted Ladd looks at the various macro and market risks created by the Fed's prolonged easing and enumerates his 20 misgivings.

Revisiting the Interest Rate Risk of TIPS

TIPS were one of the top performing fixed income securities over the past 2 years. Nonetheless, TIPS investors who own the sector as an inflation hedge need to understand that duration sensitivity of TIPS and how it impacts its effectiveness as an inflation hedge in a rising interest rate environment. 

Municipal Bond Valuations: Is the Market Boarding a Runaway Train?

With interest rates on high-grade bonds at multi-generational lows, it is not surprising that municipal bonds put up very strong investment returns in 2012.  We observe that very favorable supply and demand conditions, as well as improvements in investors’ perceptions of state and local credit quality, have driven many parts of the municipal bond market to historically rich valuations, both in an absolute sense and relative to US government securities.

We review the factors which pushed municipal values to possibly unsustainable levels, and discuss how we are positioning portfolio to defend against a potential return to more normal relative prices.

The New Liquidity: Investment Implications of Structural Market Changes

We believe understanding the new structure of market liquidity is central to designing and implementing investment strategies that are appropriate for a transformed financial organism.

Adjusting to the New Realities of Global Debt

Standish believes that the best measure of a country's risk to the global bond market is its relative impact to economic output.

Clarifying LDI MIsconceptions

While many investors accept the notion of managing their assets to their expected liabilities in theory, there continues to be a number of misconceptions about LDI...

Smooth Sailing in the North Atlantic

A comparison of the historical experiences of Iceland and Ireland from 2008 - Present and their outlooks for the future.

Update on Central Clearing

Asset Backed Securities: A Look at the Stability of Auto ABS

A review of Auto ABS, and the case for Subprime Auto loan securities.

Liability Driven Investing Strategies

A Statistical and Qualitative Review of Q2 2012 & Second Half 2012 Outlook

Reconstructing Bond Investing to Align with New Global Debt Realities

Standish believes the combination of developed and emerging markets with GDP fundamental weighting provides the potential for higher level of return per unit of risk.

How Safe are the New Safe Havens?

Over the past 18 months Australia and Canada have become the new darlings of the global government bond market. In the case of Australia, such treatment seems, at least for the time being, warrented. On Canada, however, the mantle of 'safe haven' rests much more precariously.

Revisiting the Interest Rate Risk of TIPS

In "Revisiting the Interest Rate Risk of TIPS", Robert Bayston and Nate Pearson explain why TIPS investors who own the sector as an inflation hedge need to understand the duration sensitivity of TIPS and how it impacts its effectiveness as an inflation hedge in a rising interest rate environment.

The Municipal Market: Emerging from the Tunnel

Despite the unsettled landscape, the Standish Tax Sensitive team remains constructive on municipal bond fundamentals.

Rising Uncertainty for China

Senior investment professionals from Standish share their impressions from a recent trip to China of the delicate balancing act the country faces as it seeks to shift from an export-dependent model of growth to one based more on domestic consumption.

Municipal Bonds: Investing in Corporations

Corporations that are tax aware will attempt to minimize their tax liability, and will often invest in municipal bonds as the interest income on municipal bonds is exempt from U.S. Federal taxes.

Emerging Markets as ASTERISCS

In "Emerging Markets as ASTERISCS", Alexander Kozhemiakin explains why the term "emerging markets" is no longer adequate.  He argues for a new concept of "assets tied to economies of risky countries," or ASTERISCS.  This acronym better conveys the appeal and risks of emerging markets, whether referring to equities, bonds, currencies, or any other asset class, and better illuminates their place in a broader portfolio.

The American Jobs Act - Less Impact on Municipal Bonds than Meets the Eye

In the attached white paper, titled “The American Jobs Act – Less Impact on Municipal Bonds than Meets the Eye,” we discuss the key provisions in the proposed legislation which might affect municipal bondholders and issuers.

Assessing the Potential Impact of a US Credit Event

As debate heats up in Washington DC over raising the country's debt ceiling, David Leduc, Robert Bayston, and Tom Higgins discuss the potention implications of a US credit default on the US economy and global finanical markets. 

US Debt Ceiling and Municipal Credit

July 2011 - In view of the political impasse surrounding the federal government's debt ceiling, David Belton, Head of Municipal Bond Research, discusses the potential impact on the municipal bond market.

Emerging Markets Local Currency Debt: Capitalizing on Improved Sovereign Fundamentals

In 'Emerging Markets Local Currenc Debt: Capitalizing on Improved Sovereign Fundamenta's', Alex Kozhemiakin discusses how the sizable growth differentials between emerging market countries and the developed world will continue to serve as a magnet for capital flows into emerging markets.

Under Fire: Tax-Exemption of Municipal Bond Interest

As the budget debate heats up in Washington, we believe it is likely that the tax-exempt status of municipal bond interest will come under greater scrutiny in the coming months. 

In the attached white paper, entitled “Under Fire: Tax-Exemption of Municipal Bond Interest,” we discuss some items which might surprise you.  First, municipals are held more broadly than is often assumed, and the elimination of tax-exemption would touch taxpayers across the income spectrum.  Second, most proposals to kill tax-exemption would raise costs for state and local borrowers and potentially impair US infrastructure investment, and likely ignite very strong grass-roots opposition.  Finally, elimination of tax-exemption going forward may be very beneficial for current holders of municipal bonds.

Economic Observations and Outlook Q4 2010

Economic Observations & Outlook - Fourth Quarter 2010

Why Emerging Markets Local Currency Sovereign Bonds Now?

The answer to this question consists of 5 parts – each of them is a separate investment decision