News

Recent CCM Articles

Does America's Future Look Like Greece?
by Taylor Graff, Senior Associate
As Greece and its Euro-zone neighbors struggle to prevent a Greek default, many in the United States wonder if our nation’s deteriorating fiscal position will lead us to the same outcome. Read here.

Municipal Credit Ratings Set to Rise
by Steve Shutz, Vice President
In recent weeks, two of the three primary credit rating agencies, Moody’s and Fitch, announced plans to move forward with their respective rating recalibration processes that were sidelined during the height of the credit crisis in 2008. This will result in rating increases for tens of thousands of municipal bonds as the agencies attempt to rate municipals on a comparable scale with corporate and sovereign debt. Read here.

What does a AAA-rating really mean?
by Taylor Graff, Senior Associate
A credit rating of ‘AAA’ has long symbolized the pinnacle of safety in the investment universe.  In the past, many investors saw AAA and presumed that return of capital was certain.  However, the recent financial crisis has shattered this perception and proved that some AAA-rated investments are not as secure as others. Read here.

5/25/2010
Click here to read an open letter to our clients regarding recent market events.

5/20/2010
Markets are watching developments in the Eurozone today with a skeptical eye. The recent attempt by Germany to curb short selling is being viewed as a desperate and unilateral move, not the kind of careful and cooperative measures the Eurozone needs. Germany's parliament votes tomorrow on the EU’s bailout package, but it is unclear at this time whether the proposed bailout can be effective.

In the long-run, the Euro’s problems could benefit the U.S. It has already caused massive capital flows into the U.S., which is what has helped push Treasury rates to 2010 lows. Lower interest rates should be supportive of an expansion of investment here in the U.S. The U.S. is also not dependent on exports to Europe, particularly southern Europe. Therefore, it does not seem likely that the problems in Europe are enough to derail the nascent U.S. recovery.

However, it is entirely possible that strain in the markets continues for some time. In bond portfolios, CCM reduced credit risk significantly the first week in May and portfolios have benefited from this action. As always, we will be monitoring the situation.