Interest Rates

This article is adapted from Weekly Economic & Bond Market Insights by Thomas Simons, CFA, Chief U.S. Economist at Jefferies, and Michael Bacolas. Simons brings two decades of experience analyzing Federal Reserve policy and is a frequent commentator on CNBC and other major financial media outlets.

As 2024 begins, tech dealmaking continues to recover gradually – a trend that may endure for months or potentially longer – but be ready for it to shift suddenly.

Chief Market Strategist David Zervos says the most recent FOMC meeting, and resulting Fed commentary, suggests that the risk of overtightening is in balance with the risk of being too accommodative.

At Tech Trek 2023, Ben Langworthy dives deep into current dealmaking trends, economic resilience, and effective investment strategies in turbulent markets.

David Zervos is skeptical the Fed will be able to quickly declare victory over inflation and expects that a solid economic outlook should translate to a more restrictive Fed, for a longer duration.

The convertible debt new issue market in 2023 has been frequented by companies seeking a lower cash interest alternative to what is being offered in the high yield and investment grade debt markets. 

Specialty finance companies experienced positive momentum during the second quarter and summer of 2023. Sustained demand for credit from both consumers and alternative funding, along with some encouraging macroeconomic trends, drove continued growth.

Amid rate volatility, issuers and sponsors are leveraging rising demand and liquidity in the High Yield space to refinance near-term loan maturities.

Jefferies economists take the temperature of the US economy, offering predictions on rate hikes, the labor market, and slowing inflation.