MacKay Shields LLC

Explore the benefits of investing in taxable municipal bonds. In this video, Sanjit Gill, CFA highlights how taxable munis may offer attractive long-term yields and attractive credit quality compared to corporate bonds. With most bonds rated -A or higher and durations extending up to 30 years, we believe they present a stable investment option, especially in a Federal Reserve rate cutting cycle. Click here to view more: https://lnkd.in/gGxfwBwu

In the latest episode of Forward Guidance, Steven Friedman and Michael DePalma discuss their views on how investors can navigate the fixed income market post US election. Click to view more: https://bit.ly/4g5DBMi

It was an honor to represent MacKay Shields at the annual Municipal Bond Women's Forum (MBWF) hosted by JP Morgan in New York City. It was great to see the record turnout of over 300 municipal professionals, gathered to discuss market developments and network. I was honored to moderate the panel on WHOW - Women Helping Other Women Panel to discuss trailblazing women in the municipal bond industry. Special thanks to the panelists’ insights from Capital Group, Nuveen, Rockefeller Asset Management, Eaton Vance and J.P. Morgan for the inspiring session. I was proud to represent MacKay Shields for its commitment and support at this collaborative event for our female employees. #MunicipalBondWomen's Forum

MacKay Shields is thrilled to announce we are sponsoring Insurance Investor Live | North America 2024, where we'll be hosting the Industry Insights session on The Changes and Opportunities of Channeling Capital into High-Yield Fixed Income for Insurers led by Joseph Maietta, CFA, Managing Director, High Yield   Join us at #IILNA24 to explore the latest trends, share insights, and network with some of the brightest minds in the insurance investment industry.   🔗 register to attend the event here: https://lnkd.in/eS9JYss5 🗓️ Date: December 5th, 2024 📍 Location: New York City

I was struck by a comment in Powell’s post-FOMC briefing that he repeated in his Dallas remarks this week – that core inflation excluding housing has returned to a level that is consistent with two percent inflation (see chart below). The logic for excluding housing inflation is that it represents a “catch-up” of lease renewals to current market rents, and reflects past inflationary pressures rather than current ones. This narrower view of core inflation would seem to support continued easing at upcoming FOMC meetings. But other views of the inflation data tell a different story, one where inflation is looking a bit sticky, if not stuck. Assuming a 27 basis point rise in the core PCE price index in October based on inputs from CPI and other data, core PCE inflation will have accelerated to a 2.8 percent annualized rate over the past three months, from 2.2 percent in August. In addition, trimmed mean CPI (which I see as a better measure of underlying inflation than core inflation) shows signs of plateauing at an elevated rate. I think there are still very good reasons to expect inflation to moderate over the next year; most importantly, the labor market is in better balance and continues to cool. But in the near term, given strength in the economy and recent firm inflation prints, Powell’s newfound caution on further rate cuts is understandable. As he said in his Dallas speech, “The economy is not sending any signals that we need to be in a hurry to lower rates.” And keep in mind that the new economic projections released at the December meeting will likely show a higher median year-end inflation projection, and a lower unemployment rate, than at the September meeting. Those revisions could complicate the communications around a December rate cut. At this point, a December cut is a close call. But regardless of the December meeting outcome, the bumpy path to two percent inflation and strength in the economy indicates less scope for policy easing over the next year or so. At this point I would not expect more than 100 basis points of further easing between now and the end of 2025.

In our latest episode of Forward Guidance, I provide a brief synopsis of the November FOMC meeting, including Chair Powell’s slightly dovish press briefing, before offering some early thoughts on the economic implications of the election. There has been much attention on potentially outsized changes to fiscal, trade and immigration policy. But I think some of the polices as implemented will turn out to be more constrained than advertised. View more here: https://bit.ly/4fz8ecA

In our latest specialty fixed income outlooks, we review how the US economy's shows strong, sustained growth with improved productivity and a stabilizing labor market, shifting investor concerns from recession to reflation. Follow the link to read our latest outlook: https://bit.ly/3YoHvse

Amid tightening spreads and market shifts, Neil Moriarty discusses the complexities of the securitized sector and exploring opportunities in undervalued areas like commercial real estate and asset-backed securities. Click here to view: https://lnkd.in/gGxfwBwu

#MacKayMoments | Employee Spotlight – Ania Pritchard Learn more about Ania Pritchard, Associate Director at MacKay Shields in our latest Employee Spotlight! Click here to view more about MacKay Shields: https://bit.ly/3Gc0de4

In our latest episode of Forward Guidance, Steven Friedman and Michael DePalma discuss whether China’s recent policy announcements represent a watershed moment, akin to former ECB President Mario Draghi’s “Whatever it Takes” speech that signaled a shift to decisive policy action during the European sovereign debt crisis. And fittingly, given that this was recorded on the afternoon of the firm September CPI print, they also discuss the continued strong performance of the US economy and what it means for markets and portfolio positioning. The rapid shift in market narrative away from recession risks towards reflation has been nothing short of remarkable.