The 1^st quarter of 2020 was the worst starting quarter for U.S. equities (i.e., S&P 500) since 1928. Fixed income markets didn’t fare much better. As central banks and governments responded to the healthcare crisis, April witnessed the beginning of a rebound. In the case of U.S. equities, it was the 12^th best month we’ve seen since 1928.  However, fixed income markets remain dislocated.  Our Investment Team sees investment opportunities around the corner in the fixed income market. They provide rationale for the why looking in the bond market may make sense for certain investors as well as where to look for opportunities as rhetoric gives way to more rationale thinking in the months ahead.

EXECUTIVE SUMMARY

• Government shut downs have created economic pain and a dip in equity and bond markets.
• Massive and unprecedented monetary and fiscal stimulus and re-openings have created a strong rebound in equity markets.
• However, many fixed income markets are still dislocated.
• We dive deep into the concerns and rhetoric regarding downgrades and defaults from a historical perspective.
• The result: There are tremendous opportunities in various fixed income and convertible markets.

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