Investment Insights Podcast: The yield curve – What is it and why does it matter?

Tim Holland, CFA, Senior Vice President, Global Investment Strategist

On this week’s podcast (recorded January 26, 2018), Tim discusses a topic that’s been receiving significant attention from the media and investors, and that’s the yield curve.

 

Quick hits:

  • The yield curve is simply the spread or difference between the yield on the 10-year US Treasury Note and the 2-year US Treasury Note.
  • Usually, our economy is expanding and the yield curve is positively sloped.
  • Two forces typically cause the yield curve to flatten or invert: 1. the Federal Reserve raising the Fed Funds Rate, and 2. when investors continue to invest in the long end of the yield curve.
  • The yield curve has been flattening of late. So do we at Brinker think it might be signaling a recession?

For Tim’s full insights, click here to listen to the audio recording.

 

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The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.