Basis Points Basis Points by WisdomTree Asset Management

Against the backdrop of a new rate regime in the fixed income landscape, investors have been trying to determine where to allocate funds. Kevin Flanagan dives into key trends within U.S. Credit and why investors should consider this sector of fixed income.

Basis point: 1/100th of 1 percent.

Treasury yield: The return on investment, expressed as a percentage, on the debt obligations of the U.S. government.

Fed policy has been the primary force driving the money and bond markets for the past few years. This week on the Basis Points podcast, Kevin Flanagan discusses how the Fed's data dependency has led to volatility in the bond market.

Basis point: 1/100th of 1 percent.

Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.

As we entered this year, all eyes were on the Federal Reserve’s rate-cutting trajectory. The question wasn’t “if” but “when” and “by how much.” However, recent developments have turned the narrative on its head. This week on the Basis Points podcast, Kevin Flanagan discusses this shift and the effect on the markets.

Basis Point: 1/100th of a percent.

At today's FOMC meeting, the Fed kept rates unchanged, marking the sixth consecutive time the policymakers decided to take no action on the rate front. This week on the Basis Points podcast, Kevin Flanagan looks ahead for what investors could expect for the remaining meetings this year.

Basis Points: 1/100th of a percent.

Following last week’s “hotter” than expected CPI release, the sole focus for the money and bond markets was to, yet again, dial back their Fed rate cut expectations. Ahead of the May FOMC meeting, this week on the Basis Points podcast, Kevin Flanagan dives into an aspect of Fed policy decision-making that has been flying under the radar: the balance sheet.

Basis point: 1/100th of 1 percent.

Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.

Federal Open Market Committee (FOMC): The branch of the Federal Reserve Board that determines the direction of monetary policy.

Tapering: A shift in monetary policy by which the Federal Reserve would begin decreasing the amount of bonds it purchases.

The first three months and change of 2024 has brought with it a rather noteworthy shift in bond market sentiment. With Fed policy decision-making remaining data dependent for the foreseeable future, this week on the Basis Points podcast  Kevin Flanagan discusses why investors should consider utilizing the time-tested barbell strategy to navigate not only the current setting, but more importantly, what potentially lies ahead. 

Basis Point: 1/100th of a percent  

Bloomberg Aggregate Bond Index : The Bloomberg Aggregate Bond Index or "the Agg" is a broad-based fixed-income index used by bond traders and the managers of mutual funds and exchange-traded funds (ETFs) as a benchmark to measure their relative performance.