BIL

On this episode, Anu Rajakumar sits down with Ashok Bhatia, to unpack the latest on global monetary policy, and where value sits now across the bond market. Read more here.

More than 70% of the increase in 10-year Treasury yields since the end of February has come from higher expected real short-term rates and the real term premium. Read more here.

Dell Technologies (DELL) stock has returned 341% over the past twelve months, the best record among the six companies in its peer group. Its revenue growth also ranks first. Its operating margin ranks only fourth, and that gap is what a buyer today has to judge. Behind the growth is demand for its servers that has outrun its own supply.

Johnson & Johnson (JNJ) stock has returned 58% over the past twelve months, second best in a group of six health care companies. Its revenue growth ranks only fourth of the six. Three peers grew faster and returned less, Eli Lilly among them. The price is a bet that the rest of the business keeps growing once shrinking STELARA sales stop dragging on the total.

The article discusses how the surge in AI-related bond issuance may give the impression that corporate borrowing is pushing Treasuries out of the market. It cautions that this narrative could be oversimplified and potentially misleading.

US equities finished mostly lower in a week dominated by the FOMC's quarter-point hike. Investment-grade corporates outperformed both Treasuries and taxable municipals last week.

While index volatility declined broadly last week, single stock volatility increased. This can be seen in the divergence between the VIX Index and VIXEQ Index. Read more here.

AT&T (T) grows faster than Verizon, yet it trades at a far lower multiple of earnings. In its five-company peer group it ranks second on growth and margin but only third on its earnings multiple. Management calls that a disparity, and it has raised its buyback to take advantage of it.