Nothing lasts forever, the band Kansas told us about 40 years ago, but the earth and sky. We may just be dust in the wind, but certain things do seem to outlast us. Ben Franklin talked about death and taxes—how did Lin-Manuel Miranda fail to get the hundred-dollar founding father or his famous line into Hamilton somewhere? Speaking of LMM, his run playing the bastard orphan has also come to an end as of last Saturday, as he moves on to the wonderful world of Disney. A word to future viewers—Mr. Miranda’s genius is in his creation more than his acting and singing, and it is the overall performance of Leslie Odom, Jr. as Burr and the miraculous voice of Phillipa Soo as Hamilton’s wife Eliza you’ll miss the most. In other words, take advantage of the fact that ticket prices should come down significantly and go before Daveed Diggs, a revelation as Jefferson and Lafayette, moves on.
Beyond the original cast members finishing up their Hamilton stints, what else happened last week? Oh yeah, a rush back into risk assets, as if Brexit had never happened. It reminds us that markets do tend to self-correct, and it tends to happen faster now than it used to. Investors need return and central banks need paper to buy to get even more money into the system. Hence the phenomena underlying the high-yield rally our Dennis Dowden summarizes in this issue.
Supply and demand are forces perhaps even less mutable than taxes, if not death. Everything else, at least in markets, comes later. There’s plenty of demand for convertible paper. We’ve seen hints of supply, but not the steadier flow we’d expect, zero rates or no. With stocks back up at all-time highs, even though it’s summer, we’d like to think more deals are in the offing. Here at Hillside we have the honor to be the obedient servants of convertibles.
(This is the cover letter for the subscription-based weekly Hillside's Hybrid Vigor newsletter. For a complete copy, please contact John Anderson at + 1 (646) 712-9289 x 107).