Boyd Watterson Asset Management

Successfully managing a broad range of portfolios for both institutional & individual investors

[Boyd Watterson Asset Management @BoydWatterson]

We believe a deceleration in corporate profitability will likely eventually make its way into labor market data. Payrolls and earnings data will be released later this week. However, this data tends to weaken on a lag relative to other indicators

https://t.co/0HLwKbrHdB

[Boyd Watterson Asset Management @BoydWatterson]

On January 19, 2023, the US reached the current debt limit cap of $31.4 trillion. If #Congress doesn't pass a debt ceiling increase before June, the government may have to delay #SocialSecurity benefits, #Medicare, or future interest payments.

https://t.co/j5esmuvmvL

[Boyd Watterson Asset Management @BoydWatterson]

Our takeaway from what happened in 1Q23 was that the January spending data had an outsized, one-off positive impact on headline GDP. This setup likely makes the hand-off to 2Q23 more difficult as economic data resumes its downward trend.

https://t.co/xy0N3uJmPJ

[Boyd Watterson Asset Management @BoydWatterson]

With fewer #startups now seeking space, many major #lifescience markets have seen their #vacancy rates increase such as San Diego (up 87% to 5.6%), San Francisco (up 42% to 8.4%), and Boston (up 5x to 3.4%).

https://t.co/ngfYYxyMe2

[Boyd Watterson Asset Management @BoydWatterson]

While #construction #wages have trailed, the tight labor conditions could spark growth in 2023. Also, further attraction to the industry could occur with upcoming federal spending. Workers may view this as a source of stability in an uncertain #jobmarket

https://t.co/BRV5lB7gNc

[Boyd Watterson Asset Management @BoydWatterson]

At the beginning of 2022, the price of #lumber was a main building material concern. However, that has shifted to other materials, such as fuel and cement. The volatility of materials makes it difficult to plan jobs and projects across the industry

https://t.co/EwSQdYNf34

[Boyd Watterson Asset Management @BoydWatterson]

Our expectation has increased for a slowdown in growth as #banks tighten credit standards, reducing the availability of credit broadly. This, coupled with higher interest rates and persistent #inflation, will likely raise the odds of a #recession in 2023.
https://t.co/17QOHSfTUB

[Boyd Watterson Asset Management @BoydWatterson]

Weekly Market Minute :

Historically, #labormarket data tends to lag other measures of #economic activity. Today, we are seeing more evidence of a slowdown in #economicgrowth and #inflation, which in our view likely portends labor market weakness.

https://t.co/nbh98HIlDE

[Boyd Watterson Asset Management @BoydWatterson]

The Good, the Bad, and the Ugly of this Economy – and the Implications for Fixed Income Investors

THE GOOD :

Both stocks and bonds have rallied to start the year, bringing optimism to an uncertain economic outlook.

https://t.co/c1SM15InPL

[Boyd Watterson Asset Management @BoydWatterson]

Weekly Market Minute

"Long-term Treasury yields made lower highs than prior cycles despite high levels of inflation measures."

Full Article : https://t.co/DqwPCo8a7e

[Boyd Watterson Asset Management @BoydWatterson]

Despite a challenging #economic environment, the flight to quality trend has remained a top driver of #leasing activity in the market

Full Article. : https://t.co/HZnL5BzWEA

[Boyd Watterson Asset Management @BoydWatterson]

Weekly Market Minute :

#Inflation measures in the U.S. continued to decelerate on a rate of change basis in February

The #CPI decelerated to 5.99% y/y in February, down from 6.35% last month, marking its eighth consecutive month of deceleration.

https://t.co/Xr2Zt8SPBA

[Boyd Watterson Asset Management @BoydWatterson]

There has been significant spread widening between starting and effective rents. This expansion is important because it indicates that landlords are likely having to spend more or provide more concessions to achieve the same starting rents.

https://t.co/7NNLmwd1Md

#realestate

[Boyd Watterson Asset Management @BoydWatterson]

Weekly Market Minute:

Expectations for more rate hikes increased as the Fed continued to be hawkish, and the curve inversion worsened.

Full Article: https://t.co/2QUdRR3Onf

[Boyd Watterson Asset Management @BoydWatterson]

Commercial Loan Maturities, Rising Rates, and Lease Expirations: A Perfect Storm?

"there are significant headwinds for the commercial lending market within the coming years. The office sector is facing stress that will likely take years to resolve"

https://t.co/3FXBnEhwg6

[Boyd Watterson Asset Management @BoydWatterson]

Weekly Market Minute :

"In the period following pandemic shutdowns, consumer demand accelerated which led to upstream over-ordering and an accumulation of inventory. The current dynamic is likely reflecting the downside of the bullwhip effect."

https://t.co/6el2W3xTlQ

[Boyd Watterson Asset Management @BoydWatterson]

Unpacking the latest retail sales, inventory, and industrial production data

"The trend in real retail sales, increase in the I/S ratio, and slowdown in production suggest consumer demand may be weaker than what the headline retail sales print implies."
https://t.co/TSLYkF8iDY

[Boyd Watterson Asset Management @BoydWatterson]

Bond Market Commentary 1.27.23:

"Bonds have become relevant once again and have reestablished their position as a stable source of income while providing diversification benefits for a well-balanced portfolio."

https://t.co/jZZQDwthjM

[Boyd Watterson Asset Management @BoydWatterson]

Weekly Market Minute 1.25.23 :

"Global economic data continued to signal a slowdown in consumer demand."

Full Article : https://t.co/VVNMGlxmUy

[Boyd Watterson Asset Management @BoydWatterson]

An Introduction to CLO’s - https://t.co/15heWIxfPg…

"The everyday investor may have never heard of collateralized loan obligations, otherwise known as CLO’s, but they are quickly becoming a major part of the structured financial market."