Core Viewpoint - Floating rate notes (floaters) are considered an attractive fixed income option as Treasury yields rise, and the VanEck IG Floating Rate ETF (FLTR) remains appealing even with expected interest rate cuts by the Federal Reserve [1] Group 1: ETF Overview - FLTR is a $2.56 billion ETF that yields 4.28% and tracks the MVIS® US Investment Grade Floating Rate Index [1] - The ETF holds investment-grade corporate floaters, providing a yield advantage over Treasuries [1] - FLTR has a low correlation of 0.12 to the S&P 500, making it a good diversification tool for equity-heavy portfolios [1] Group 2: Suitability and Benefits - FLTR is suitable for a wide range of client portfolios, helping to broaden income streams and offering higher-yielding alternatives to cash instruments [1] - Floating rate notes (FRNs) can serve as a cash complement for investors with intermediate holding periods, accepting modest volatility for higher income potential compared to money market instruments or Treasury bills [1] - Approximately 82% of FLTR's holdings are rated AA or A, indicating high credit quality [1] Group 3: Investment Strategy - FRNs are recommended when seeking higher income compared to risk-free rates in environments with elevated or rising short-term rates, while avoiding duration losses of fixed-rate bonds [1] - Investors should be aware of issuer credit risk in exchange for spread-based yield when considering FRNs [1] - FLTR charges an annual fee of 0.14%, equating to $14 on a $10,000 investment [1]

Core Insights - Second mortgage rates, including home equity loans and HELOCs, are at historically low levels, with introductory rates as low as 1.99% APR for one year offered by some credit unions [1] - The average HELOC rate is currently 7.23%, down two basis points from the previous month, while the national average for home equity loans is 7.44%, down 12 basis points [2] - With primary mortgage rates remaining low, homeowners are less likely to sell their homes or refinance, making HELOCs and home equity loans attractive alternatives for accessing home equity [3] Interest Rate Determination - Home equity interest rates are calculated based on an index rate plus a margin, often using the prime rate of 6.75% as a benchmark [4] - Lenders have flexibility in pricing second mortgage products, and rates depend on factors such as credit score and debt levels [5] Lender Offers and Comparisons - Credit unions are offering competitive introductory HELOC rates, such as 5.99% APR for 12 months on lines up to $500,000, which will convert to a variable rate after the introductory period [6] - Home equity loans may be easier to navigate due to fixed rates throughout the repayment period, eliminating concerns about draw minimums [7] Current Market Conditions - Interest rates for HELOCs and home equity loans have decreased throughout 2025 and are expected to remain stable in the first half of 2026, making it a favorable time for obtaining a second mortgage [9] - Funds drawn from HELOCs or home equity loans can be utilized for various purposes, including home improvements and repairs [10] Payment Structure - For a $50,000 home equity line of credit at a 7.50% interest rate, the monthly payment during the 10-year draw period would be approximately $313, but rates are variable and payments may increase during the repayment period [11]

Core Insights - Bitcoin and the broader crypto market are preparing for potential volatility due to the delayed US inflation data, with the Consumer Price Index (CPI) report set to be released this week [1][2] - The recent stronger-than-expected jobs report has shifted expectations for Federal Reserve rate cuts, reinforcing a "higher-for-longer" interest-rate outlook [2] - The nomination of Kevin Warsh, a pro-Bitcoin advocate, as the new Federal Reserve Chair could lead to long-term changes in monetary policy affecting Bitcoin's market trajectory [3] Market Reactions - If the upcoming CPI data exceeds 2.5%, Bitcoin may break below the critical psychological support level of $60,000, where institutional buy orders are concentrated [4] - Conversely, a lower-than-expected inflation reading could push Bitcoin back towards the resistance level of $74,400 [4] - Current data indicates a nearly 95% probability that the Federal Reserve will maintain interest rates at 3.50%-3.75% in the near term [5] Economic Context - The ongoing "crypto winter" that began in January 2025 shows signs of recovery, but immediate price movements are closely tied to the forthcoming inflation data [6]

Economic Indicators - U.S. jobs growth significantly strengthened in January 2026, with 130,000 jobs added, surpassing economist forecasts of 70,000 jobs and an increase from December's growth of 48,000 jobs [1] - The unemployment rate decreased to 4.3%, better than the forecast of 4.4% and matching December's rate [1] Market Reactions - Following the strong job data, bitcoin rose to $67,500, although it was still down 2% over the past 24 hours [2] - U.S. stock index futures showed modest gains, with the Nasdaq 100 up by 0.55% and the S&P 500 by 0.5% [2] - The dollar, which was lower earlier, increased in value, and the 10-year U.S. Treasury yield rose by five basis points to 4.20% [2] Federal Reserve Policy - The Federal Reserve maintained its interest rate policy during the January meeting, showing little inclination to resume rate cuts in March [3] - Prior to the job report, interest rate traders estimated a 21% chance of a rate cut in March, which decreased to 19% after the report [3]

Group 1 - The recent government shutdown delayed the release of key jobs data, which was originally scheduled for last Friday [1] - The Bureau of Labor Statistics had just resumed its regular data release schedule after a 43-day shutdown, which previously halted all federal data collection [2] - The lack of government data has led to increased attention on third-party reports, such as Challenger, Gray & Christmas, which reported that companies cut 108,000 jobs in January, the highest for any January since 2009 [3] Group 2 - U.S. employers added 50,000 jobs in December, which was below the revised figure of 56,000 jobs added in November and below the expected 73,000 jobs [3][4] - The unemployment rate decreased to 4.4% in December from a revised 4.5% in November, marking the first decline since June [4] - Federal Reserve officials are concerned about a potential surge in unemployment, noting that job openings in December were at their lowest since 2020 [5][6] Group 3 - Economists view job openings as a leading indicator of future job growth, which is crucial for the Federal Reserve's mandate to maintain high employment and control inflation [6] - The Federal Reserve has been divided on whether to cut interest rates to support the job market or maintain higher rates to combat inflation, with rates held flat at the January meeting [7] - Analysts from Bank of America Global Research referred to the upcoming jobs report as the "Super Bowl of jobs reports" due to the significant attention it is receiving [8] Group 4 - Forecasters predict that U.S. employers likely added 55,000 jobs in the last month, with job gains expected to be concentrated in health care, while the unemployment rate is forecast to remain at 4.4% [9] - The U.S. Bureau of Labor Statistics releases the Employment Situation Summary monthly, estimating job additions, average hours worked, and average hourly earnings [11] - The government's jobs report is considered the gold standard for measuring labor market health and the broader U.S. economy [12]

Core Insights - The article discusses the current state of money market accounts (MMAs) and highlights the importance of finding competitive rates as interest rates decline following recent Federal Reserve rate cuts [1][4]. Group 1: Current MMA Rates - The national average interest rate for money market accounts is 0.56%, while top rates can exceed 4% APY, comparable to high-yield savings accounts [2]. - TotalBank currently offers the highest money market account rate at 4.01%, which is over seven times the national average [7]. Group 2: Interest Rate Trends - Money market account rates are closely linked to the federal funds rate set by the Federal Reserve, which influences deposit account rates [3]. - Following a target range of 5.25%–5.50% maintained by the Fed, three rate cuts have led to a decline in money market rates, with expectations for further declines in 2025 [4]. Group 3: Considerations for MMA Investment - Money market accounts are attractive for savers due to their elevated rates, safety, and liquidity, making them suitable for those with short-term savings goals or emergency funds [5][6]. - For conservative savers, MMAs provide FDIC insurance and principal protection, while long-term savers may need to consider riskier investments for higher returns [6].

Economic Data - The US economy added 130,000 jobs in January, with the unemployment rate decreasing to 4.3% from 4.4% [3] - Revisions to 2025 payroll growth showed a significant decrease to 181,000 from a previously reported 584,000, marking the weakest annual job growth since 2003, excluding recessions [4] Market Reactions - The Dow Jones Industrial Average fell approximately 0.4%, while the Nasdaq Composite declined by 0.2%, and the S&P 500 remained near the flatline after initial gains [2] - The strong jobs report has influenced market expectations regarding Federal Reserve rate cuts, with over 40% of traders anticipating the Fed will maintain current rates through June, while two cuts are still expected by year-end [5] Corporate Earnings - Upcoming earnings reports from major companies like McDonald's and Cisco are anticipated to provide insights into consumer behavior and corporate performance [6]

Group 1 - Retail sales in December were flat compared to November, which saw a 0.6% increase, while economists had anticipated a 0.4% rise for December [2][4] - The report indicated a decline in sales for various sectors, including furniture, home furnishings, and electronics, with only building materials and garden stores showing a slight increase [3][8] - The overall economic environment is mixed, with GDP growth being robust but job creation slowing significantly, averaging only 28,000 jobs per month since December [5][6] Group 2 - The upcoming consumer price report is expected to show a 0.3% increase in December, matching November's figures, which could influence the Federal Reserve's interest rate decisions [7] - Some retailers, like Walmart, are performing well due to their competitive pricing, while others are facing challenges, leading to store closures and reorganizations under bankruptcy protection [7][8]

Core Insights - Money market accounts (MMAs) are highlighted as a favorable option for storing cash due to their relatively high interest rates, liquidity, and flexibility [1] - MMAs typically offer better returns than traditional savings accounts and may include check-writing privileges and debit card access, making them suitable for long-term savings with easy access [2] Interest Rates Overview - Despite a general decline in rates over recent months, some MMAs still offer rates exceeding 4% APY [3] - Historical fluctuations in MMA rates are largely attributed to changes in the Federal Reserve's target interest rate [4] - Following the 2008 financial crisis, MMA rates were low, averaging between 0.10% to 0.50% due to the Fed's near-zero federal funds rate [5] - The COVID-19 pandemic prompted another drop in MMA rates as the Fed cut rates to combat economic fallout [6] - Starting in 2022, aggressive interest rate hikes by the Fed led to historically high deposit rates, with many MMAs offering rates of 4% or higher by late 2023 [7] - As of 2026, MMA rates remain high by historical standards but are on a downward trend following recent Fed rate cuts [8] Considerations for Choosing MMAs - When selecting a money market account, factors beyond interest rates, such as minimum balance requirements, fees, and withdrawal limits, should be considered [9] - Some MMAs may require a minimum balance of $5,000 or more to earn the highest advertised rates, and monthly maintenance fees can reduce interest earnings [10] - There are competitive MMAs available without balance requirements or fees, emphasizing the importance of comparing options [10] - It is crucial to ensure that the chosen account is insured by the FDIC or NCUA, which guarantees deposits up to $250,000 per institution, per depositor [11] Current Market Rates - The national average interest rate for money market accounts is currently 0.56%, while the best rates can reach around 4% APY, comparable to high-yield savings accounts [12] - For example, depositing $50,000 in a money market account with a 4.5% APY would yield approximately $2,303 in interest over one year [13] - Currently, no money market accounts offer 5% APY, but some high-yield savings accounts from online banks can exceed 4% [14]

The UK retail sector is preparing for continued inflation pressure after the Bank of England voted to hold the Bank Rate at 3.75%, signalling caution despite signs that headline inflation is easing. While policymakers see progress towards the 2% target, retailers warn that rising employment and regulatory costs could keep shop price inflation elevated through 2026. The Monetary Policy Committee (MPC) voted by a narrow margin to keep interest rates unchanged, underlining uncertainty over how quickly infl ...