4TH QUARTER 2006
Quarter Ended 12/31/2006
Tale of Two Bond Markets
The tale of the bond market in 2006 is split into two parts, one before the June 29 FOMC meeting and the other after the meeting.

3RD QUARTER 2006
Quarter Ended 9/30/2006
Risk and Return
Investors should not ignore the risk-adjusted return of fixed income given the low volatility and high Sharpe Ratio of this asset class.  A higher Sharpe Ratio represents a better risk/return profile.

2ND QUARTER 2006
Quarter Ended 6/30/2006
Correlation Revelations
Recently, it has become apparent that many asset classes have become more correlated and have lost some of their portfolio diversification benefit.

1ST QUARTER 2006
Quarter Ended 3/31/2006
Keeping it  Real - Real versus Nominal Interest Rates
An important reason to follow real rates is that they can provide persective as to whether current bond market yields are attractive or not without the distorting effects of inflation.