Key Takeaway Messages:

• REPO market has responded positively to Fed stimulus, which is a good sign.
• Banks continue to grow cautious about lending to each other, despite the Fed stimulus, which is a flag for us. We are watching this very closely.
• Commercial paper (corporate liquidity) has come down a bit with the stimulus, but it’s still too elevated for our comfort. We are watching this closely as well.
• Credit default swaps (probability of company default) are not as high at 2008 and have come down a bit since the stimulus, which is good, but still have a long way to go to signal a healthy market.
• Unemployment data, which is a leading indicator of where the market is going, is at significantly higher levels than past recessions. This is obviously very concerning. 
• The market has completed the 50% retracement that we expected. We are watching all of the data now to see what directional trends will emerge from here. All of our key indicators warrant caution.
• We are in a good cash position to take advantage of emerging opportunities with companies that are well-positioned for the recalibrated economy…when we feel the time is right. 
• We maintain a cautious position and we are watching for our indicators to tell us the right time to re-enter. 

Thank you for listening and for allowing us to serve you. May you have health, peace and prosperity.  Please don’t hesitate to contact us with any questions or concerns.

Best regards,

The Willow Team
+1 413 236 2980