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Challenge: Leading organization through volatile bond market, Challenge:…
Challenge: Leading organization through volatile bond market
Social
Bonds are an instrument of debt.
Americans today hold the record for the highest level of household debt(Center for Microeconomic Data, 2023).
The United States has record levels of gross federal debt (Peterson, 2023).
Political
The government issues different types of government bonds which are currently volatile (FasterCapital, 2024).
The government sells new bonds so they are responsible for setting the rates (FasterCapital, 2024).
Environment
Covid 19 caused the Fed to implement open market policy that would increase the supply of money in the economy (Ihrig et al., 2021).
The Fed has raised rates in order to decrease money supply in the economy (Ihrig et al., 2021).
The open market policies have now created high inflation (Ihrig et al., 2021).
Economic
Inflation leading to monetary policy change (PimCo, 2024).
Inverse relationship between bonds and interest rates(PimCo, 2024).
Technology
Technology has made access to the bond market much more accessible making bonds much more liquid (The rise of technology in the bond market 2023).
Pricing of bonds has become more transparent (The rise of technology in the bond market 2023).
Legal
Our largest client is an insurance company so we must invest in mainly bonds to remain compliant with the NAIC.
We are unable to avoid the bond market and must navigate the volatile market.
Challenge: Cyber Crime Security.
Penn Mutual Asset Management
Economic
Increased costs for security to protect our network and information.
Political
FTC has safeguard rules for our organization to develop, implement, and maintain an information security program (Staff in the Office of Technology, 2023).
Legal
We must follow any laws enacted by the government related to cyber security. This is always changing and created the need for compliance to keep up with new laws.
Social
Quarterly trainings for all employees on safety from malicious hackers.
Environment
Estimated 9.5T of total losses in 2024 due to cyber crime. (Punjwani, 2024)
AI can be used by cyber criminals to increase chances of successful cyber attack (FBI warns of increasing threat of cyber criminals utilizing Artificial Intelligence 2024).
Technology
Enhanced security measures such as a VPN and automatic email monitoring for suspicious links.
In depth analysis of vendors SOC 2 reports to determine if their security measures are sufficient for our needs.