Wealth Management
The transition away from zero interest rate policy (ZIRP) wasn’t painless, requiring sharp rate hikes and a challenging bear market before monetary conditions began resembling pre-2008 norms. Now, with higher government bond yields, investors have a genuine risk-free income opportunity, prompting a rethinking of portfolio strategies.
Angelo Kourkafas of Edward Jones suggests that as cash yields dip below bond returns in 2025, bonds are poised to outperform, restoring their historical role in balanced portfolios.
While trade policy uncertainty could complicate this outlook, he expects Canadian bond yields to stay rangebound, with income rather than price appreciation driving returns. He sees this fixed-income strength complementing a more measured equity rally, with a diversified stock-bond mix offering steadier returns in the year ahead.
Finsum: Oversized cash positions, could become a portfolio drag, especially for conservative investors who could lock in reliable income with bonds.
The rise of separately managed accounts (SMAs) is reshaping the financial services industry, shifting brokers from commission-driven sales to fee-based consulting focused on long-term client relationships. However, this transformation remains incomplete, as many advisors misuse SMAs, treating them like expensive mutual funds rather than customizing portfolios for individual needs.
Despite SMAs' advantages, such as tax-loss harvesting and tailored asset allocation, few brokers fully leverage these features, with customization rates alarmingly low. A significant hurdle is inadequate diversification, especially as lower account minimums make it difficult to properly spread investments across multiple managers and styles.
To address these challenges, brokers need better training, more robust technology platforms, and a commitment to understanding both their clients and their investment managers.
Finsum: Ultimately, success with SMAs requires not just offering the product, but delivering ongoing service, customization, and disciplined portfolio management—a shift that, while slow, seems inevitable
After years of low volatility, foreign exchange trading is roaring back to life. The currency desk, once overshadowed by stocks and bonds, is thriving as global interest rate policies diverge and trade tensions resurface.
Optiver’s FX volumes have doubled since 2024, prompting a shift to 24-hour operations, with new hires and strategic relocations to meet surging demand. Banks are also rebuilding their currency trading teams, recruiting veterans from the 2008 financial crisis alongside fresh talent eager to navigate the revived market turbulence.
Hedge funds are fueling the momentum, with record-breaking activity in Asian currencies and a renewed belief that FX can add real value to portfolios.
Finsum: Whether this marks a long-term shift remains uncertain, but for now, the “sleeping giant” of foreign exchange has undeniably awakened.
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China’s new tariffs on U.S. energy imports are expected to hit the metallurgical coal market the hardest, given its role in steel production. While crude oil and LNG trade between the two countries is small, with minimal global disruption anticipated, U.S. coking coal made up nearly 12% of China’s seaborne imports in 2024.
If these tariffs make American coal uncompetitive, China’s steelmakers will need to turn to other suppliers, most likely Australia and Canada. This shift could force China to pay a premium, as these countries already have strong demand from India, the largest global importer of coking coal.
A reshuffling of trade routes might occur, with China buying more Australian coal and India offsetting that by sourcing more from the U.S., though not without some initial price volatility. As coking coal prices have been falling, Australian exports could gain a pricing edge if Chinese buyers pivot, while U.S. producers might face challenges securing alternative markets.
Finsum: Pay attention to the commodities circuit, as tariffs start to take hold, retaliatory efforts could spawn ways to generate alpha.
Broadway’s spring season is blooming with an eclectic mix of new musicals, revivals, and star-studded productions. Idina Menzel makes her grand return in Redwood, a powerful story set against the majestic backdrop of California’s redwood forests.
Audiences can dive into history with Operation Mincemeat, a witty and thrilling musical about a real-life WWII deception, or get swept away to Havana with Buena Vista Social Club, celebrating the music and legends of Cuba. Heavyweight performances are also on the horizon, with Denzel Washington and Jake Gyllenhaal taking on Othello, while Sarah Snook brings all 26 characters of
The Picture of Dorian Gray to life in a mesmerizing solo performance. Branden Jacobs-Jenkins’ Purpose promises a poignant look at a Black political dynasty, and Glengarry Glen Ross returns with Kieran Culkin and Bob Odenkirk delivering Mamet’s sharp-edged dialogue.
Finsum: Whether you crave classic drama, innovative storytelling, or dazzling music, Broadway this spring offers a show-stopping experience for every theatergoer.
GeoWealth has expanded its platform offerings through a new partnership with Halo Investing, allowing advisors to build and manage customizable structured note portfolios within a unified managed account (UMA).
This collaboration gives advisors the ability to view, report, and bill at the individual sleeve level using GeoWealth’s proprietary sub-accounting system. Halo’s fintech platform, launched in 2015, has facilitated $12.5 billion in issuance, offering not just structured notes but market-linked CDs, buffered ETFs, and annuities, with robust tools for analysis, execution, and portfolio management.
The partnership arrives on the heels of GeoWealth’s acquisition of First Ascent Asset Management, boosting its platform assets to $21 billion and reinforcing its tech-forward approach with half its workforce dedicated to product and engineering. As structured notes become more integrated into advisor strategies, this move positions GeoWealth to offer more diversification and income-generating opportunities for clients.
Finsum: This timely expansion the growing demand for alternative fixed-income solutions amid shifting market conditions.