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Friday, November 23, 2018

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty
Kevin Doyle • Lonnie Harris •  Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer
 Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell • Gus Koppen

US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
11/15/18 2.20 2.37 2.51 2.70 2.86 2.91 2.94 3.02 3.11 3.27 3.36
11/16/18 2.21 2.36 2.50 2.68 2.81 2.85 2.90 2.99 3.08 3.23 3.33
11/19/18 2.23 2.38 2.52 2.66 2.79 2.82 2.87 2.97 3.06 3.22 3.32
11/20/18 2.23 2.39 2.51 2.67 2.79 2.83 2.88 2.97 3.06 3.22 3.31
11/21/18 2.25 2.41 2.52 2.67 2.81 2.84 2.89 2.98 3.06 3.22 3.31
                                                                                                                                       Source: U.S. Department of the Treasury, as of 11/21/2018

A Traders Perspective

Wallets are open and deals will be abound today as Black Friday shoppers scoop up discounted merchandise across the country.  Similar to the sale on Nest thermostats or large big screen TVs that you may have already bought, we are big fans of today’s fixed income Black Friday specials…discounted 20yr 3.5% pools.  With 20yr 3.5% pools at a slight discount to par (yielding over 3.50%) they appear to be the perfect gift for your fixed income portfolio this holiday season.  For example the below pool provides a very stable yield profile 3.54-3.56% across all Bloomberg shock scenarios, exhibits limited extension risk (less than 1yr), and has 60bps of spread in the base case. 


Source:  Bloomberg 11/23/18

CCB wishes you and your families a happy Thanksgiving holiday weekend.  We are grateful for the friendships we have built over the years and hope to continue them well into the future.  We continue to be humbled and recognize how fortunate we are to call you our friends.  Best wishes – CCB 

                                                                                                                                                                                                                                                   


This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value