US Midterms 2026: Democrats Take Control of Congress
The Democrats have taken control of Congress. What does this mean for investors? Our equity, fixed-income and liquidity CIOs weigh in.
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11/10/26
US MIDTERMS 2026: DEMOCRATS TAKE CONTROL OF CONGRESS
The Democrats have taken control of Congress. What does this mean for investors? Our equity, fixed-income and liquidity CIOs weigh in.
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Does EM Debt Now Look More Orthodox than Developed Markets?
US Treasury yields are near multi-decade highs and the Fed has begun tightening policy, boosting the appeal of emerging markets' real yields and constructive policy backdrops.
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With a Flatter Curve, Less Duration Can Be More
Federated Hermes examines the flattening Treasury yield curve and why shorter-duration bonds may offer attractive income with less exposure to interest-rate volatility. The piece also considers portfolio implications under soft-landing and persistent-inflation scenarios.
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The Costs of Building AI
Federated Hermes examines the surge in debt financing behind the AI infrastructure buildout, weighing strong hyperscaler fundamentals against risks including widening credit spreads, circular financing, competition and rising leverage.
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Still Up and To the Right
Federated Hermes’ equity group entered 2026 with a street-high earnings growth forecast, but earnings have exceeded even our lofty expectations.
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Webcast: Navigating the Front End: Perspectives from Federated Hermes' Short-Term Investments Committee
Join members of Federated Hermes' Short-Term Investments Committee for a timely look at today's market environment and what it means for institutional cash and short-duration portfolios.
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The AI Trade Isn't a Bubble - It's a Supply Problem
Federated Hermes offers investment solutions across a range of asset classes.
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How Will a Changing Fed Make Up Its Mind?
Inflation is easing, but economic strength, labor-market resilience and renewed pressure on oil prices are complicating the Federal Reserve’s next move. Federated Hermes explains why less predictable Fed policy may keep bond-market volatility and term premiums elevated.
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Why Won't Consumers Stop Spending?
Consumer spending has remained resilient despite higher prices, supported by continued confidence in employment and income. Federated Hermes explains why selective consumer behavior, uneven inflation and policy uncertainty may favor high-quality bonds, shorter duration and active security selection.
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New Leader, New Angle for the Fed
Federated Hermes examines how new Federal Reserve Chair Kevin Warsh may shift the Fed’s tone, communications and policy approach. The article highlights a more hawkish outlook, fewer policy hints and possible reforms tied to the Fed’s balance sheet, data, technology and inflation framework.
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Tech IPOs Play Leapfrog
Federated Hermes examines how the next wave of technology IPOs may reshape market leadership. The article highlights how emerging companies could challenge today’s dominant technology incumbents through innovation, stronger processing capabilities, improved data center use and advances in large language models.
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Can Asia's AI Frontrunners Stay the Course?
Federated Hermes examines the narrowing leadership in Asia ex-Japan markets as AI-related companies in Taiwan and South Korea continue to drive performance. The article highlights valuation differences across China, South Korea, Taiwan, India and Thailand as investors weigh momentum against discipline.
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Webcast: Rethinking Factor Investing: From Static Exposures to Dynamic Alpha Models
Factor investing remains a cornerstone of quantitative equity, but the playbook is changing. As markets become more complex and concentrated, investors are moving beyond static, linear models toward more adaptive approaches to alpha generation.
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Scale Matters: Navigating EM Oil Credit in Volatile Markets
As we all know, the ongoing conflict in the Middle East has significantly disrupted the global oil supply – and this has been reflected in pricing.
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Will International Equities Be Derailed by Iran?
Assuming that a demand shock and an ugly bout of stagflation can be avoided, my view is that the bullish thesis for international equity remains intact.
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AI, Data Centers and US Growth
The bull case for 2026 and beyond is increasingly dependent on the promise of AI, even as the debate about pros and cons rages in real time.
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FedSpeak Meets Legal Jargon
A potential 'chair pro tempore' and the criminal probe dominated the Fed's policy-setting meeting.
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Investors Weigh Knock-on Effects of Iran Conflict
The recent spike in oil prices is likely to have far-reaching consequences.
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Rate Realities Await the Next Fed Chair
Warsh is a very credible pick with a record of being an inflation hawk and, most importantly, a staunch defender of Fed independence.
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A Cap on Credit Cards?
In early January, President Trump called on credit card issuers to lower their rates to 10% by January 20. That date has now passed, and, subsequently, the president has called on Congress to legislate lower rates for cardholders.
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Webcast - Short Duration Strategies: Uncovering Value Along the Yield Curve
2025 has brought its share of headwinds: inflation pressures, tariff uncertainty, and global market volatility. Amid the noise, the 1–3-year segment of short duration fixed income is emerging as a sweet spot for investors seeking stability and attractive income.
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Cautious Optimism for 2026
Welcome to the Federated Hermes 2026 outlooks series. Over the following weeks, our thought leaders and portfolio managers in liquidity, fixed income and equities will discuss what the new year might bring for the economy, financial markets and investors.
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Can More Analyst Coverage Help Predict Stock Performance?
Closer research helped us uncover a relationship between analyst coverage and our price-based factors.
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Webcast - International Equities: Uncovering Value Beyond the Mag 7
Join us for a timely conversation on how institutional investors can navigate this shift and position for long-term growth across a diversified set of markets.
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High Contrast
Fed Chair Powell was markedly less confident in the October FOMC meeting than in September's.
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A Swirling Array of Factors Suggest Lower Yields
Something changes when the benchmark takes on a life of its own.
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A Dollar Bazooka for Argentina
US Treasury Secretary Scott Bessent appeared to throw Argentina’s under-pressure President Javier Milei a lifeline this week with a commitment "to do what is needed" to support Latin America’s third-largest economy.
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Lots of Game Left as We Enter the Fourth Quarter
Do rate cuts support additional hiring? Or does that come from confidence in margins and future cash flows? Do lower US Treasury (UST) rates simply lower the cost of capital and encourage even more investment in AI? Or does the broadening-out market support new hires?
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Index Investing and Dr. Frankenstein's Creation
Introduced in 1957, the S&P 500 is the most widely cited US equity index, with more money managed to it, by far, than any other benchmark. As such, it has become a proxy for the health of US investors, corporate America and the overall economy.
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Navigating Tariff Turbulence: The Resilience of Asset-based Trade Finance
As US tariffs reshape global trade and supply chains, institutional investors are finding diversification benefits and durable spreads in one of the world’s oldest asset classes. Join us as we discuss how shifting trade policies are impacting developing and emerging markets and how privately sourced trade finance can deliver alpha amid funding gaps.
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The Fed Shifts Focus
Political pressures persist and markets assume the resumption of rate cuts.
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The Half-Full Glass
Sticking with our 'broadening out' call despite the caution the Fed’s cracked rearview mirror demands.
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When Risk is Underpriced, Quality is All the More Valuable
High yield is all about risk and reward—and lately risk isn’t being priced appropriately. We remain defensive in our high yield positioning for two reasons, one macro in nature while the other involves dynamics within the market itself. What they have in common is an underpricing of risk and a need to focus on “quality.”
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Trade Finance: Access Uncorrelated Alpha Potential With Limited Reliance on Traditional Return Drivers
Trade finance refers to loans that provide short-term financing to support the physical flow of goods.
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Credit Investors Threatened With Tax Hike on US Income
US tax bill could hike taxes of foreign holders of US assets.
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Can Argentina Reboot Its Crisis-ridden Economy?
President Javier Milei’s severe austerity package has helped tame the country’s chronic inflation crisis.
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Webcast: Breakthroughs in Quant Investing: Navigating Modern Markets
How has quantitative investing demonstrated resilience during market volatility, including the recent disruptions?
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Summer of Unrest?
Yet a series of storm clouds are gathering that could spark modest profit-taking of around 5 percent in the summer. Such a correction would be healthy, in our view, reducing some of the recent froth and shaking off weak hands.
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Muni Credit Solid as Federal Surplus Shifts to Shortage
Most municipalities used Covid stimulus wisely and are prepared for cuts in federal funding.
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Labor Market Decelerating
Headline nonfarm payrolls rose by a stronger-than-expected 139,000 jobs in May (consensus at 126,000, Federated Hermes at 77,000), as tariff uncertainty and fiscal policy confusion did not confirm disappointing whisper numbers last month.
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What Could Go Right
With markets settling down after the wild ride of the past several months, a very natural behavioral response has been gripping many investors and, especially, market strategists.
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Fed May Do Little in This Push-Me-Pull-You Market
Treasury yields spiked once again as the federal budget and deficit took center court, but this time other forms of fixed income investment benefitted by comparison to their associated risk-free rates.
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Short Term Investments and Market Insights
The Short Term Investments Committee (STIC) is a collection of Federated Hermes investment professionals with in-depth experience investing across the 0-3-year part of the yield curve.
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Health Care Stocks Could Shine in 2025
Long a laggard, the healthcare sector has catalysts for outperformance.
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Import Surge Pushes First-Quarter GDP Into the Red
Underlying economic growth was solid in the first quarter, with personal consumption, corporate spending and housing all stronger than expected.
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Labor Market Remains Solid, Despite Tariff Uncertainty
Federal payrolls have declined by only 26,000 jobs over the past three months through April.
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Global Market Snapshot: 05-02-2025
It was a big week for US macro data this week, with GDP, earnings and the JOLTS report all going live.
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Many Crosscurrents Are Affecting US Rates
Bonds do their job during the first 100 days of uncertainty
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Let Powell Drive the Bus
Trump's attacks make it harder for the Fed Chair to steer the economy through the storm.
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The Greenback is Singing the Blues
The US dollar's recent decline isn't a sign it will relinquish its status as the reserve currency.
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Trump's Policy Reversals Buoy Markets
Over the next 12-18 months, we anticipate several positives: lower tariffs, decreasing interest rates and Treasury yields and expanded tax cuts.
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A Bunker for the Trade War
Equity market neutral strategies offer potential for shelter amid volatility.
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Bank Deregulation: Bondholder Friend or Foe?
Creditors must weigh the benefits and risks of Trump's push for looser rules.
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The Seven Minutes That Shook Markets
The sell-off and rebound don't mean investors can’t weather volatility.
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The Curious Case of Rising Treasury Yields
US Treasury yields increased sharply after falling leading up to and immediately after the April 2 tariffs announcement.
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Navigating Through the Fog of the Trade War
Maintaining our moderate equity overweight as we slip past the reefs.
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Global Market Snapshot: 04-10-2025
It has been a tumultuous week for global markets, with major indices see-sawing.
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Stability of Money Markets
The stability of the money markets is shining amid the greater financial turbulence.
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Did We Mention There Might Be Some Volatility?
Bonds display quiet strength as markets back away from risk.
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The Contours of a New Trade Landscape
Total market uncertainty has now been replaced with at least some semblance of recognition of the parameters of a new global trading paradigm.
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Labor Market Remains Strong
Calculated well before the tariff announcement, the US added a robust 228,000 jobs in March.
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Global Market Snapshot: 04-04-2025
The latest episode in the long-running US trade policy saga sparked a global sell-off this week.
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Bond Market Amid Trump's Tariffs
The bond market is a rational voice amid the panic caused by Trump’s tariffs.
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Approaching Peak Uncertainty in the Strait of the Sirens
With markets selling off big time following yesterday’s tariff announcements, we have finally hit the entry level.
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Trump’s Reciprocal Tariffs
Trump’s reciprocal tariffs are more aggressive than the markets were expecting.
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The New Magnificent Seven
The growth of money market mutual funds since the Federal Reserve first hiked rates in 2022 has been something to behold.
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What Drives Credit Spreads When Rates Rise?
Federated Hermes offers investment solutions across a range of asset classes.
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Trade Finance: The Investment Opportunity In The Real Economy
Maarten Offeringa of Federated Hermes explains how trade finance gives insurance investors access to short-duration, floating-rate credit tied to essential goods and global supply chains.
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After the volatility, where is the stock market headed?
With peak tariff uncertainty behind us, we think stocks should grind higher.
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Disclaimer
1as of 3/31/26