The AI boom is no longer just an equity story, where tech companies fund out of revenue and retained earnings. It is now a debt story as well. Moody’s estimates that data centers will require at least $3 trillion of investment through 2030, spanning servers, buildings, and power infrastructure ¹ . A growing slice of that is coming through the investment-grade market: banks expect hundreds of billions of new AI-linked bond issuance from the major hyperscalers in 2026. The comp

In our November 2025 note, Mitigating Risk in a Bond Portfolio , we focused on how to think about valuations across credit. This piece is meant as a companion, looking at a narrower question: what kind of interest-rate risk should sit at the heart of a “core” portfolio when Fed independence itself is in play?   Fed independence as a macro risk factor   The US Federal Reserve is facing an unusual level of political pressure. A high-profile criminal investigation into Chair Jer

The rate backdrop has shifted again. The 30-year US Treasury now yields roughly 4.8%, while short-dated bills and the 2-year note range around 3.5–3.75%. After several years of inversion, the curve is back to a more traditional, upward-sloping shape. Investors are finally being paid a term premium for extending duration. At the same time, housing affordability has become a political and policy priority. The Trump administration has repeatedly highlighted the need to lower the

Over the past few months, the credit markets have flashed warning signs meriting investor attention. One standout failure, Tricolor Holdings, has raised concern about underwriting, complexity and servicer/asset quality oversight. Tricolor collapsed with allegations of double pledging collateral and weak documentation in its auto loan ABS structure. While the greater market appears to function as if these events were largely idiosyncratic, it marks an opportune time to review

In equity markets, momentum investing can work even when valuations are high. Investment grade bonds are different. Core fixed income is meant to be the ballast in a portfolio, not a place to chase returns at any price.  When spreads run very tight, valuation discipline becomes critical. Where We Stand Today - Investment grade corporate bond spreads are currently just 74 basis points.  We haven't seen such levels since 1998 – leaving little room for further compression. - Whi

High yield investments often showcase attractive nominal yields - but are your clients earning what's advertised? Realized returns frequently fall short of quoted yields due to default losses, especially in lower-rated credits. At Curasset Capital Management, we employ a practical framework that goes beyond headline yields. By incorporating realistic adjustments to arrive at a Yield to Default (YTD) measure, we explicitly incorporate the loss rates associated with investments