The Davenport Asset Management Fixed Income team manages 5 models with oversight by the Investment Policy Committee (IPC). The team takes a dynamic approach to managing interest rate and credit risk with a conservative focus designed to meet individual client needs. Important Disclosures Disclosures: Any opinions expressed here are statements of judgment on this date and are subject to future change without notice. This information may contain forward looking predictions that are subject to certain risk ...

mohd izzuan/iStock via Getty Images Sentiment in the fixed income markets remains bullish and issuance is robust, but spreads are tight, so we are staying defensive and investing opportunistically. Newton’s First Law Of the many newsworthy events and policy ...

Core Viewpoint - Benchmark remains optimistic about Strategy (MSTR) despite recent stock struggles, emphasizing the unique advantage of its bitcoin-linked perpetual preferred shares which provide permanent capital [1][3]. Group 1: Company Strategy - Executive Chairman Michael Saylor highlighted the strength of the company's 640,031 BTC treasury, which is over twelve times larger than the next largest corporate holder, as a key competitive advantage [2]. - The structure of the perpetual preferred shares mitigates refinancing risks associated with bitcoin price fluctuations, ensuring a stable capital base without diluting common equity [3]. Group 2: Market Potential - Benchmark anticipates the evolution of bitcoin-linked fixed income into a multi-hundred-billion-dollar market, positioning Strategy as a leading architect in this space [4]. - The broker's price target of $705 reflects projected bitcoin value and a 10x multiple on expected gains, alongside the company's software business outlook through 2026 [4]. Group 3: Recent Developments - The STRC offering in July raised $2.52 billion, marking it as the largest U.S. IPO of the year, indicating strong investor interest [3].

Market Overview - Digital Credit is positioned as a bridge connecting Bitcoin and the $300+ trillion fixed income market [1]

Digital Credit & Fixed Income Market - Digital Credit potentially offers higher returns for statistically lower risk compared to the $300+ trillion fixed income market [2] - Bitcoin treasury companies issuing Digital Credit may catalyze the integration of the $300+ trillion fixed income market into Bitcoin [3] - The fixed income market may need repricing, potentially leading to capital flow into Digital Credit [2] Bitcoin & Strategy's Preferred Equity - Even with a 0% CAGR for Bitcoin and high volatility, Strategy's preferred equity is significantly undervalued by the fixed income market [1] - Under more optimistic scenarios (30% CAGR and high volatility, or 0% CAGR and lower volatility), Strategy's preferred equity is even more mispriced [2] Market Implications - The integration of fixed income into Bitcoin has profound implications for Bitcoin's price and the global financial system [3]