July - 2017

CLEAR INVESTMENT RESEARCH, LLC

CD RATE HISTORY - HISTORICAL NOTE

CD RATE HISTORY - HISTORICAL NOTE

Not since the days of inflation and high interest rates have Certificates of Deposits (CDs) been perceived as a viable source of income for retirees and conservative savings for working individuals. For years, banks used CDs as primary marketing products to attract new customers and help build deposit bases. As rates fell substantially, CDs became less attractive, incentivizing banks to find other products to sell. The historically low rates of today have created CD yield war

HOW DODD FRANK RULES AFFECT CONSUMERS - REGULATORY REFORM

HOW DODD FRANK RULES AFFECT CONSUMERS - REGULATORY REFORM

The highly contested regulations imposed by the Dodd–Frank Wall Street Reform and Consumer Protection Act, commonly referred to as Dodd Frank, came under additional scrutiny when House lawmakers passed a bill to start unwinding portions of the act. The passage of the Financial Choice Act on June 8th, aims to eliminate various rules that many believe have been constraining lending and financial progress in the banking and financial sector. Known as regulations to curtail certa

THE GOOD NEWS ABOUT BANKS PASSING A STRESS TEST - BANKING SECTOR FOCUS

THE GOOD NEWS ABOUT BANKS PASSING A STRESS TEST - BANKING SECTOR FOCUS

Imposed stress tests by the Federal Reserve for the nation’s banks resulted in a favorable outcome. A total of 34 banking entities were subject to the Fed’s stress test, officially known as the Comprehensive Capital Analysis & Review (CCAR). The better than expected results will allow banks to increase their dividend payouts and execute share buybacks. Data from the Fed’s test results revealed that the average common equity capital ratio for the 34 banks was 12.5% for the fir

RECENT FED RATE HIKES IN QUESTION - MONETARY POLICY

RECENT FED RATE HIKES IN QUESTION - MONETARY POLICY

Over the past 27 years, the Federal Reserve has raised it key rate, the Federal Funds Rate, 35 times, each to slow down inflationary pressures and to curtail elevating price levels. The Fed increased rates aggressively and consistently in 1994 to hold off a rapidly expanding economy, lifting rates six times for t he year. A decade later, the Fed raised 8 times in 2005 in order to temper a rapidly expanding housing market where easy mortgage lending had essentially gone out of

FLAT YIELD CURVE - FIXED INCOME OVERVIEW

FLAT YIELD CURVE - FIXED INCOME OVERVIEW

The slope of the yield curve has been flattening in recent weeks, with short-term rates rising faster than longer bond yields. This typically occurs when monetary policy is tightening. The difference between five-year Treasury notes and 30-year Treasury bonds flattened to 96 basis points in June, the narrowest since December 2007. Five-year note yields, which are highly sensitive to rate policy, rose to a four-week high of 1.80%. Thirty-year bond yields, which are largely dri

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