Yorktown Funds

03/27/2024

Bond yields, economic data, asset sectors, and investment positioning ⬇️

Someone recently asked us, if the commercial real estate market is so bad, why haven’t we seen the carnage just yet? We, of course, have seen it. We see it every day in various ways, but we tend to be so focused on one metric or one headline, maybe depending on headlines is a better way of saying it, that we seem to lose sight of it and put it out of our minds.

More in this months Fixed Income Focus below ⬇️

Fixed Income Focus - City Lights & Slippery Steps

Uncover the hidden risks in NYC's municipal budget amid commercial real estate turmoil. Learn how CRE issues impact investors and municipal debt.

03/14/2024

The Yorktown Growth Fund Institutional Shares (APGRX) won Best Fund for the 10-year period (ended 11/30/23) in the Global Small-/Mid-Cap Funds category out of 72 other share classes based on consistent risk-adjusted returns.

“The 2024 LSEG Lipper Fund Awards are recognizing perhaps the most dramatic three-year period that the markets have seen in decades. Fund managers being recognized have steered their investors through a pandemic, a mild recession, a war, skyrocketing inflation and dramatic central bank intervention. Whether you’ve been investing for just the past 15 years and have seen only the easy money environment following the Financial Crisis – or you’ve been an investor for 50 years and feel as if you’ve seen it all, there is no way to have foreseen the range of fundamental and non-financial factors that impacted the markets these past few years. We applaud the 2024 LSEG Lipper Fund Award winners such as Yorktown Management & Research Co. for delivering outperformance and the accompanying comfort of consistency to investors’ portfolios through a cross-current of global market disruptions.”

- Robert Jenkins, Global Head of Research, Investment & Wealth LSEG Lipper.

View the Yorktown Growth Fund by Clicking Here:
https://hubs.ly/Q02psczL0

Join the discussion and read more at the link below:
https://hubs.ly/Q02ps6my0



From LSEG Lipper Fund Award © 2024 LSEG. All rights reserved. Used under license.

02/23/2024

For corporate bonds, issuance in 2023 continued to be a far cry from the historic highs seen in 2020.

Instead, it was just a continuation of the drab results of 2022, which itself was hampered by the initial foray of the Fed embarking on its rate hiking mission. As illustrated below, there was little difference between 2022 and 2023, as the total amount of issuance was at or near the ten-year lows last seen in 2018.

In 2023, total corporate issuance, as reported by Sifma, was $1.4 trillion, which is far closer to the ten-year low of $1.3 trillion reported in 2018 than the 10-year high of $2.3 trillion reported in 2020.

02/21/2024

The upside to this increased demand and activity is the level of liquidity afforded to those who want it.

The market is certainly feeling pretty grabby. The inclination is to join the hoard, but there is something to be said for walking around the pile of bodies at the just-opened doors.

The danger in a moment like this is to get too aggressive and get caught up in the moment. Worse, these are the moments that can lead to investors reaching further down the credit stack as they try to get fully invested.

🔗 Click the link below to read more.

Fixed Income Focus - It's Grabby Out There
https://hubs.ly/Q02lQcl20

02/13/2024

When compared to five-year averages, the further one goes down in credit, the tighter the spreads seem to be ⬇️

💰 If money floods this area, this will continue to tighten, making credit even more expensive.

📉 This creates a dangerous condition in the marketplace where a lot of cash chases lower credit.

🤕 History shows us that getting paid far less for the risk taken than should be demanded usually ends in pain.

02/09/2024

Fed Reverse Repo Facility Usage continues to drop...

📉 The drop in usage most likely means that MMFs are reallocating the money to other instruments.

💡 MMFs have historically been big users of the facility as it allows them to park cash.

📏 It also allows them to meet the onerous investment requirements as spelled out in the governing rules for MMFs.

02/07/2024

A strong comeback, solid growth potential, & undervalued opportunities. More available at the link below:

Small Cap Focus - A Strong Comeback https://hubs.ly/Q02jWS-r0

02/05/2024

The MMF industry is rejoicing, certainly liking the fees they are generating. But MMF managers are equally on edge. Follow the link below for more info. ⬇️

Fixed Income Focus - Let's Focus on the Obvious https://hubs.ly/Q02jSqqK0

01/24/2024

Kicking off 2024 with PLENTY of market insights. More info at the link below ⬇️

Fixed Income Focus - Let's Focus on the Obvious
https://hubs.ly/Q02hvXVp0

12/22/2023

Financial Advisors, let's decode the recent rate rally!

📊 From a 52-week high to a significant drop, the 2-year and 10-year treasuries are on the move. In mid-October, the 2-year treasury hit 5.22% yield, a 52-week high. From that point to the end of November, it dropped over 50 bps, ending the month at 4.68%.

Join the conversation to navigate the implications and refine your strategies.

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12/12/2023

Fixed Income Focus – Are We Taking Care of Our Business? https://hubs.ly/Q02cJkHx0

We’re seeing a lot of attention being paid to the consumer as we contemplate the higher rate environment and what that means ultimately to those who need to borrow at these levels, what kind of impact it has on their monthly budget, and if it is indeed changing spending patterns.

We’re seeing a lot of attention being paid to the consumer as we contemplate the higher rate environment and what that means ultimately to...

11/21/2023

That is a great deal of debt that needs to be refinanced 💸 Where do you see the largest pain points being?

🔍 Non-investment grade firms will have $1.87 trillion of debt maturing between 2024 and 2028

📊 Companies rated single B and below have $206 billion coming due in 2024 and 2025

💡Companies rated single B and below have $1.1 trillion between 2024 and 2028