1Q 2010 Investment Perspectives

April 15, 2010

Proposed Financial Reform
Note: this article was written in early April, before various changes to the proposed legislation were made.
As we stand in the aftermath of the most severe economic downturn since the Great Depression, we must reflect upon several of the causes that led us to this point.  The primary causes of the downturn were a result of poor risk management, oversight, and regulation. In response to these factors, lawmakers have proposed a bill that attempts to address several of the shortcomings in our current regulatory/financial system. The bill authored by Chris Dodd and the Senate Committee on Banking, Housing, and Urban Affairs intends to address the following primary issues:

  • Protect/educate consumers
  • Identify systemic risks
  • Eliminate loopholes
  • Streamline bank supervision
  • Input on executive compensation
  • Transparency and accountability for credit rating agencies and financial products
  • Strengthen oversight to prevent fraud and manipulation

Today’s Environment: An Unusually Steep Yield Curve
Today’s interest rate environment is unique in American post-war economic history. With the federal funds rate at the zero lower bound and likely to stay low for an “extended period,” the yield curve is as steep as it has ever been since the 1950’s.

Download PDF

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

03.26.2024

Assessing the Likelihood of a Recession and Understanding the Impact on Portfolios

Is a recession coming to the U.S.? It’s a question that has been asked since 2022, as the Fed’s rapid…

01.18.2024

Great Expectations

After ending 2023 with a steep market rally, 2024 began on a more muted note, with Fed-pivot exuberance giving way…

12.21.2023

We’re Not So Different, High Yield Bonds and Leveraged Loans

Late last year we authored an article detailing the growing differences between the high yield and leveraged…

10.12.2023

U.S. Equities: Surprising Strength Gives Way to Macro Risks

Equity market strength through the third quarter continues to challenge the common expectation going into the year. Cumulatively through September…

09.27.2023

The Implications of a Government Shutdown

The federal government will shut down if Congress is unable to pass funding legislation by October 1, and a bill…

08.09.2023

Observations from Across the Pond

Marquette regularly sends a senior member of our research team abroad as part of ongoing manager sourcing…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >