February 2020

Signature Coronavirus Commentary

Eric Bushell's picture
Market positioning in January was extended. The combination of the U.S.-China Phase 1 trade deal, the U.S. Federal Reserve’s (the “Fed”) 75 bps cuts in the summer and a banking system liquidity surge fueled by the Fed’s $60 billion/month U.S. Treasury bill purchase program resulted in a textbook risk melt up. Exhibit A was that credit spreads tightened to post-Lehman lows. Exhibit B was the large-cap technology sector price surge. Levered investment strategies and systematic investors were programmatically swept into the momentum-driven upswing. Paranoid active managers joined in out of fear of passive annihilation.

Sprint and T-Mobile Merger: From the Desk of the Signature High Yield Team

Darren Arrowsmith's picture
On February 11, 2020, a U.S. district judge ruled in favor of a $26 billion deal for Sprint Corp. to merge with T-Mobile, creating the third largest mobile carrier in the U.S. This announcement was unexpected, sending shares of Sprint up 77.50% and shares of T-Mobile up 11.78%.