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About lpawlick

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So far lpawlick has created 13 blog entries.

The Stable Value Market Environment: Third Quarter 2015

During the quarter, global financial markets were taken for a wild ride as periods of volatility and heightened levels of risk aversion resulted in large market swings. This was largely in response to concerns over global economic growth driven by continued weakness in China and other emerging markets, falling commodity prices, and stagnation in Europe. [...]

The Stable Value Market Environment: Second Quarter 2015

During the quarter, financial market movements continued to be heavily influenced by global central bank policy and geopolitical events.   In particular, global fixed income markets experienced periods of volatility with sovereign debt yields moving sharply higher as brighter economic outlooks in the US and Eurozone eased deflation fears and increased the prospects of a Fed [...]

2014: GIC Issuers: Another Stable Year, Managing the “New Normal”

Throughout our twenty-eight year history, FCM’s stable value management approach has utilized diversified portfolios of traditional guaranteed investment contracts (GICs) issued by major life insurance companies. We have found several relative value advantages in using GICs over other stable value products, including policyholder status and superior yield premiums relative to comparable high-grade obligations. In general, [...]

The Stable Value Market Environment: First Quarter 2015

During the quarter, financial markets continued to experience periods of volatility as investors had much to agonize over including falling oil prices, large currency movements, more fiscal problems in Greece, disappointing US economic news, and the timing of future Fed rate hikes. As typical these days, global central banks did their part to move markets [...]

The Stable Value Market Environment: Fourth Quarter 2014

During the quarter, financial markets experienced periods of volatility as investors reacted to potential disruptions to global economic growth prospects including increasing fears of deflation, plunging commodity prices, the falling Russian Ruble, and weaker economic reports outside the U.S.. However, these volatility tantrums did not last long as markets were quickly calmed by news of [...]

The Stable Value Market Environment: Third Quarter 2014

During the quarter, financial markets experienced periods of heightened risk aversion, primarily caused by geopolitical tensions in Ukraine and the Middle East and concerns of slowing global economic growth. Moreover, market volatility increased, as the European Central Bank announced more severe policy measures to stimulate economic activity and prevent deflation. The Treasury market exhibited demand [...]

The Benefits of a GIC Ladder in a Rising Rate Environment

Over the past several years, one of most challenging questions for fixed income managers and Stable Value managers alike has been "do you believe that interest rates are going higher and how are you positioning your portfolios?". Well, for the last several years most economists have predicted rates to move higher as the economy improves [...]

Why Stable Value?

Stable Value allocations in defined contribution (DC) plans vary inversely with stock market returns for two primary reasons: The first is just math, as in any period, the higher returning asset's allocation will grow in relation to lower returning asset's allocation. The second is "behavioral", since participants unfortunately have a tendency to "buy high and [...]

2013: GIC Issuers- Another Stable Year, Headwinds Start to Abate

Throughout our twenty-seven year history, FCM's stable value management approach has utilized diversified portfolios of traditional guaranteed investment contracts (GICs) issued by major life insurance companies. We have found several relative value advantages in using GICs over other stable value products, including policyholder status and superior yield premiums relative to comparable high-grade obligations. In general, [...]

myRA: The Stable Value Fund Created by Executive Order

During his State of the Union address, President Obama vowed to sidestep Congress "wherever and whenever" he can to achieve his agenda. Based on that vow, he signed an executive order the following day at a steel plant in Pennsylvania directing the U.S. Treasury to create the "myRA" (my-R-A). He described it as a simple, [...]