Fight fans may clearly point to the buildup surrounding what is considered by many nothing more than hyped publicity toward a big pay check. After all, both men are considered the “best” in their respective sports; Mayweather among the greatest boxers of all time and McGregor, a vociferous well-respected ultimate fighter; however, the match-up will occur in Mayweather’s sandbox, tilting the scale towards his expertise. There’s another heavyweight brewing in our industry between the Fed and the market. The Fed, too, has been determined and unremitting in their efforts to raise interest rates while the market is basically indicating, “not so fast”. After all, the Fed controls and impacts short-term rates as demonstrated last Wednesday by raising rates another 25 basis points (bp). The actual event was perhaps built into the market as nearly 100% of experts anticipated the move for weeks in advance; however, the Fed does not dictate the economic environment and the market is prevailing on the hard core facts and tale of the (economic) tapes.
To learn more about the risks and rewards of investing in fixed income, please access the Securities Industry and Financial Markets Association’s “Learn More” section of investinginbonds.com, FINRA’s “Smart Bond Investing” section of finra.org, and the Municipal Securities Rulemaking Board’s (MSRB) Electronic Municipal Market Access System (EMMA) “Education Center” section of emma.msrb.org.
The author of this material is a Trader in the Fixed Income Department of Raymond James & Associates (RJA), and is not an Analyst. Any opinions expressed may differ from opinions expressed by other departments of RJA, including our Equity Research Department, and are subject to change without notice. The data and information contained herein was obtained from sources considered to be reliable, but RJA does not guarantee its accuracy and/or completeness. Neither the information nor any opinions expressed constitute a solicitation for the purchase or sale of any security referred to herein. This material may include analysis of sectors, securities and/or derivatives that RJA may have positions, long or short, held proprietarily. RJA or its affiliates may execute transactions which may not be consistent with the report’s conclusions. RJA may also have performed investment banking services for the issuers of such securities. Investors should discuss the risks inherent in bonds with their Raymond James Financial Advisor. Risks include, but are not limited to, changes in interest rates, liquidity, credit quality, volatility, and duration. Past performance is no assurance of future results.