While the market is increasingly attractive on an absolute and relative basis, it has been an extremely challenging performance environment so far this year.
PMA/FL SAFE Achieves Significant Milestone – Reaching $1B in Fund Assets
PMA, a premier full-service provider of financial and advisory services to local governments, along with the Florida Surplus Asset Fund Trust (FL SAFE), achieved a significant milestone by reaching $1 billion in assets in FL SAFE and its Fixed Rate Investment program as of November 23, 2022.
FEATURED MARKET DATA
Fed and Inflation Driving Markets
Stocks rallied in November on softer inflation data and expectations for the Fed to slow the pace of rate hikes beginning in December. Together, the news helped lift the S&P 500 index 5.38% for the month.
FEATURED MARKET DATA
Inflation Pressures Cool Slightly
The market widely anticipates the Federal Reserve will hike rates by another 75 basis points on November 2. The question on the market’s mind is what they will do in December and what will be the terminal Fed Funds rate.
Recent News
CD Rates Fall Behind Fed Rate Hikes
As the Federal Reserve has moved short-term rates higher, the rate banks offer on their certificates of deposits has lagged significantly. Across the industry, the average rate for one-year CDs increased by 0.36% to 0.62% from September 2021 to September 2022. Large banks (>$250bn) led the way with an increase of 0.77% for one-year CDs over that period.
FEATURED MARKET DATA
Seeking Income
A plummet in bond yields in 2020 sent many investors on a search for yield. A relatively attractive dividend yield on stocks provided one source of income. As investors gravitated toward dividend paying stocks, equity indices such as the Russell 1000 Value index outperformed more growth oriented indices.
FEATURED MARKET DATA
Fed Higher for Longer
In a speech in Jackson Hole, Wyoming on August 26, Fed Chair Jerome Powell emphasized the importance of reducing inflation. He said the Fed would continue raising rates and hold them higher until it is confident inflation is under control. This pushed up market expectations for where the Fed Funds rate will be at the end of 2022, 2023 and 2024.
PMA/WISC Achieves Significant Milestone – Reaching $3B in Fund Assets
PMA, a premier full-service provider of financial and advisory services to local governments, along with the Wisconsin Investment Series Cooperative (WISC), achieved a significant milestone by surpassing $3 billion in assets in WISC and its Fixed Rate Investment program as of July 13, 2022.
PMA/MOCAAT Achieves Significant Milestone – Reaching $1B in Fund Assets
PMA, a premier full-service provider of financial and advisory services to local governments, along with the Missouri Capital Asset Advantage Treasury (MOCAAT), achieved a significant milestone by reaching $1 billion in assets in MOCAAT and its Fixed Rate Investment Program as of July 12, 2022.
PMA | IPRIME Partners with ISACo to Serve Illinois Counties
We would like to take this opportunity to provide our colleagues with some exciting news regarding a new partnership between PMA and ISACo! On June 13, 2022, PMA Financial Network, LLC and PMA Securities, LLC (PMA) entered a partnership with the Illinois State Association of Counties (ISACo) to serve counties with a complete line of financial management and investment services.