ECONOMIC & BOND MARKET QUARTERLY UPDATE—Second Quarter 2009


Inside This Issue—Second Quarter 2009

Interview with Frank Koster, Chief Investment Officer
Recently named Dwight's Chief Investment Officer, Frank Koster has over 30 years of institutional investment experience, most recently specializing in investment-grade institutional fixed income portfolios. In this interview, Frank discusses his investment philosophy, his take on the current financial market environment, and his outlook for the future.

Fixed Income Sector Review

First-quarter signs of stability in the corporate bond market were followed by the best-performing quarter on record by a wide margin.

Economic Update

Our long-held forecast that real GDP will reach a trough this summer remains on track. After plunging at annualized rates of 6.3% in the final quarter of 2008 and 5.5% in the initial quarter of 2009, the economy's pace of contraction slowed significantly last quarter.

International Bond Market Update

Are happy days really here again or will today's green shoots become tomorrow's wilting stems? While there is undisputable evidence that economies in most parts of the world are stabilizing—and some are even showing modest signs of recovery—we believe that the markets have started to become complacent about the challenges that lie ahead.

Dwight News: Frank Koster Joins Dwight as CIO; Dwight Completes Liftout of Neuberger Cash Management Team
Frank Koster joined Dwight's Investment Team in June. As Chief Investment Officer, Frank oversees the management of the firm's investment strategies.

Investment Results as of 6/30/09 [login required]
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