ON THE STREET MONTHLY – SOFR BRINGS A SEISMIC SHIFT TO AMERICAN LENDING

The London interbank offered rate (LIBOR) is one of the most famous and essential financial benchmarks in the world because it dictated how interest rates change for both commercial and consumer debt. However, after a series of scandals and a lack of quantitative substance, the secured overnight financing rate (SOFR) will replace LIBOR in the […]

ON THE STREET MONTHLY – INVESTORS FLOCK TO STOCKS PUSHING OTHER ASSET CLASSES TO RECORD VALUATIONS

August continues the trend of all-time highs for the equity markets, which is boosting confidence in derivatives, cryptocurrencies, and other alternative investments. The combination of strong consumer demand, impressive Q2 quarterly earnings, and economic optimism pushed the Dow Jones, Nasdaq, and S&P 500 to record highs, thanks in large part to outperformance by many financial […]

ON THE STREET MONTHLY – S&P 500 HITS A RECORD HIGH

June ended on a strong note for stocks, as the banking sector led the S&P 500 to a record high, making it the 33rd time this year that the index reached a new record. This was the fifth straight month of gains for the S&P, which has already gained 14% on the year. Stocks were […]

ON THE STREET MONTHLY – BIDEN PROPOSES A NEW BUDGET

President Joe Biden announced his plans for a $6 trillion US budget in the coming year. This would represent a one-third boost to federal spending compared to pre-coronavirus levels, and would be the highest sustained federal spending level since World War II. His plan is also expected to raise government spending to $8.2 trillion by […]

ON THE STREET MONTHLY – INTEREST RATES TO REMAIN CONSTANT

The Federal Open Market Committee decided in April that now is not the time to raise interest rates. The FOMC cited the need to continue helping in the coronavirus economic recovery along with low levels of inflation as reasons for their decision. However, Federal Reserve chairman Jerome Powell and the committee were optimistic as to […]

ON THE STREET MONTHLY – INFLATION STARTS TO HIT EUROPE

For months many have wondered if inflation will start to become a problem. And while the United States has yet to see inflation become a real problem yet, over in Europe, inflation has become a real issue. In March, the Eurozone saw its highest inflation since the start of the pandemic. Consumer prices across the […]

ON THE STREET MONTHLY – INTEREST RATES ARE ON THE MOVE

Interest rates have taken a beating over the past few years, but in February, rates started to show signs of life. The 10-year treasury yield hit 1.614% at the end of the month, the highest rate since the coronavirus pandemic began last Spring. It appears that a combination of positive news from mass vaccinations, economic […]

ON THE STREET MONTHLY – A BATTLE FOR MORE ECONOMIC STIMULUS

Now that there is a new administration in the White House, analysts are beginning to get a sense of what is to come for the US economy. President Biden unveiled a $1.9 trillion stimulus package that includes more direct payments to Americans, increasing unemployment benefits, and help with coronavirus vaccine rollouts across the country. Republicans […]

ON THE STREET MONTHLY – STOCKS FINISH THE YEAR ON A TEAR

2020 was a year filled with uncertainty and chaos, but the stock market ended the year on a bright note. Major indices hit all-time highs before retreating slightly to close out December, and leave investors feeling confident heading into 2021. The beginning stages of a coronavirus vaccine rollout furthered the belief that the pandemic is […]

ON THE STREET MONTHLY – A DIVIDED GOVERNMENT COULD BODE WELL FOR STOCKS

While President-elect Joe Biden beat out incumbent Donald Trump in the Presidential election, the political picture is still as murky as ever. The Democratic party was able to maintain their majority in the House of Representatives, albeit losing several seats in the process with several races yet to be called. The Senate is much closer, […]