March 2021 Month-End CRTx ® Index Rebalancing Update
The CRTx® Aggregate returned -0.18% in March, breaking a 7-month positive return streak as demand was volatile, new-issue spreads widened, and cross-asset credit yields had moved relatively cheaper. The CRT market still ultimately outperformed most other major fixed income sectors MTD/QTD/YTD, closing Q1 up 1.61%, as a higher/steeper curve continued to pressure rates and IG/HY. The CRTx® Aggregate Index basket for April starts at $48.76 billion in market value across 236 constituents from 97 deals.
SCI 3/5/2021: Middle Market Opportunities: MM CLOs still offer relative value and continued innovation...“MM CLOs are positioned favourably against broader credit, according to Mark Fontanilla, founder of Mark Fontanilla & Co……
February 2021 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate ended February up 0.59% MoM, extending its positive monthly return streak to 7 months in a row, and has returned 1.80% YTD. The CRT market continues to outperform major rates and corporate credit sectors this year, despite IG/HY tightening, as the curve moved markedly higher and the 2s/10s spread bear-steepened another 30bps. The CRTx® Aggregate Index basket for March starts at $48.86 billion in market value across 235 constituents from 95 deals.
MF&Co's chief strategist Mark Fontanilla will be speaking alongside other industry experts on the "Trading Opportunities Roundtable: MM CLO secondary market relative value explored" panel at SCI's 2nd Annual Middle Market CLO Seminar 2021.
January 2021 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate opened 2021 up 1.20% MoM for January, nearly identical to the pre-COVID 1.21% total return from 2020’s opening month one year ago. CRT outperformed other major rates and corporate credit sectors as the curve bear steepened ~20bps. Generally firmer spreads across the CRT complex, a flattening of the credit curve, along with better new-issue pricing from the 1st STACR deal of the year, helped buoy the CRT sector last month. The CRTx® Aggregate Index February basket starts at $48.3 billion in market value across 232 constituents.
Opal Group's Global ABS and Structured Finance Summit 2021
MF&Co's chief strategist Mark Fontanilla will be speaking alongside other industry experts on the "CLO Market Update Roundtable– US" panel at Opal Group's Global ABS and Structured Finance Summit 2021.
Bloomberg 1/22/2021: Normally Trouble, Refinancings Are Boosting Some Mortgage Bonds - "When homeowners refinance their mortgages, bond investors often get hurt, but a small corner of the debt market is ironically benefiting from it.....The “supplemental subordinate reduction amount,” which was added to entice potential investors, makes it so payments can pick up even if delinquencies remain high, according to Mark Fontanilla, whose eponymous company created the CRTx Credit Risk Transfer Return Tracking Index. In these deals, once an existing CRT’s size is big enough compared with the unpaid balance of its reference pool, principal payments will resume despite any failed delinquency tests....."
December 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate finished 2020 strong, ending December up 1.91% MoM, and Q4 positive by 4.16%, while closing out the year with a relatively modest, but meaningful 2.26% YTD total return. The COVID-19 pandemic’s extraordinary stress on the CRT market in Q1, where the CRTx® Aggregate lost nearly 25%, and the sector’s subsequent recovery, lagged other rates and credit sectors substantially, but the rebound in market values, credit performance, issuance, and market technicals all helped benchmark GSE CRT end 2020 on a number of positive notes. The CRTx® Aggregate Index starts 2021 at $47.7 billion in market value (vs $49.7 billion at the beginning of January) across 230 constituents.
October 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate finished October up 0.68% for the month, once again outpacing most other major market benchmarks month over month as equities net declined and the curve bear steepened. October’s CRT market values generally improved overall as sector volatility stayed contained amidst rate volatility edging up and the curve bear steepening. The latest reference pool DQ figures came in generally improved in aggregate, although a few deals ticked up in the October statements. The latest STACR 2020-DNA5 deal enters the CRTx® November basket, which will start out at $45.57 billion in constituent market value, an increase of 1.6% over the October basket.
Bloomberg 10/26/2020: A $50 Billion Housing Bond Market Is Stuck in Regulatory Limbo - "A $50 billion bond market once heralded as the future of housing finance has been stuck in limbo since the start of the coronavirus crisis, and now proposed regulatory changes have left investors worrying that they might be left holding the bag.....At issue are so-called credit-risk-transfer securities offered by Fannie Mae and Freddie Mac. They are tied to Fannie and Freddie’s mortgage-backed securities and pay investors principal and interest as long as the borrowers don’t default. CRT bonds have a market capitalization of about $45 billion, according to data from market research firm Mark Fontanilla & Co....."
September 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index ended September up 1.11% for the month, outpacing most other major fixed income sectors. For Q3, the Index gained 2.41%, lagging only HY for the quarter. September’s CRT market values were modestly improved as volatility remained lower and the latest reference pool credit performances came in largely contained, albeit at persistently elevated levels. With the latest STACR 2020-HQA4 deal printing, the CRTx® October basket will start out at $44.87 billion, net little changed from September’s constituency.
August 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index posted a solid 1.69% total return in August, recouping July’s -0.39% decline and then some. Index gains were led primarily by a surge in the earliest-vintage fixed severity deals, and overall firmer spreads for Lower Mezzanines across the board. CRT outperformed the major fixed income sectors for the month as the curve bear-steepened, but CRT sits at -2.89% YTD, still well behind rates and IG/HY for 2020 so far.
July 2020 Month-End CRTx® Index Rebalancing Update
After a remarkable +27% rebound in Q2, the CRTx® Aggregate Index started Q3 modestly down, posting a -0.39% total return for July. Benchmark CRT has not quite recovered its Q1 declines and sits at -4.51% YTD, still lagging other major markets, including rates, IG, and HY, which all rallied last month, and are all now positive for the year.
June 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index closed out Q2 strongly, gaining 9.04% in June, and finishing the quarter up 27.16%. The Index had been down over 25% YTD at the end of Q1 during the beginning of the COVID-19 market fallout, but now sits down “only” 4.13% YTD at the end of Q2. June/Q2 CRT returns beat all other major fixed income sectors, but benchmark CRT still lags YTD as both CRT and HY remain negative.
CRTx® Aggregate Index continued to regain lost ground in May, returning 7.03% for the month, following the 8.97% rebound in April. QTD, the CRTx® is up 16.62%, beating most other major fixed incomes sectors, including HY’s nearly 10% 2nd quarter comeback so far. However, YTD, the CRT market still lags with a COVID-19 influenced -12.08% total return, while most other rates and credit sectors (except HY) are positive for 2020. 2018-2020 LMEZZ and SUBs led the way, while the earliest fixed severity tranches lost more ground.
WSJ 5/27/2020 - Fannie and Freddie’s Capital Dilemma: "A new proposal would give the mortgage firms a sizable capital cushion to protect taxpayers but could complicate their potential public offerings" (including quotes from MF&Co's Chief Strategist Mark Fontanilla and a reference to the CRTx® Index.
April 2020 Month-End CRTx® Index Rebalancing Update
Following the broader markets, the CRTx® Aggregate Index rebounded in April, posting an 8.96% total return for the month, taking back some of the stunning 25%+ drop in March as COVID-19 related stress continued. CRT outpaced other fixed income sectors such as HY, which gained over 5% in April, but the CRT sector still has a bigger return deficit to overcome. While aggregate CRT performance was up for April, technicals and fundamentals continue to drive differences across the CRT complex.
Bloomberg 4/3/2020: After $50 Billion of Losses, No One Comes to Save the Mortgage Market - "The market for mortgage-backed securities was in free fall, with fear running rampant and banks seizing collateral......“For buyers in this market, it’s about willingness and ability right now,” said Mark Fontanilla, who owns a market strategy consulting firm that specializes in structured finance. “Things are so uncertain, you need to have deployable, stable capital to be able to hold positions, especially less liquid ones, through the uncertainty.....”
March 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index plummeted an extraordinary 25.28% in March to its lowest level since March 2016, wiping out 4 years of Index gains in about 4 weeks. Escalating economic and world markets fallout from COVID-19 ravaged CRT and other structured product sectors as liquidity and credit risk outlooks were severely tested. While COVID-19 was the spark of current crisis conditions, mortgage REITs were the fuel that ignited extreme CRT sector volatility as fast-falling prices prompted a wave of margin call pressures and large-scale selling. Indicative of the stress, CRTs went from trading on discount margins to often trading on a dollar/yield basis. Benchmark CRT prices have swung from premiums to discounts, with over 95% of outstanding CAS and STACR classes trading below par in March, versus the exact opposite in February. Dollar handles ranged anywhere between $40-00 and $100-00 to close out Q1.
February 2020 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index posted a negative 16bps return in February as coronavirus-related volatility pressured world financial markets. A risk-off rally throughout the month, culminating with the biggest yield declines in the final week of February, hit equity markets heavily in favor of longer duration rates products. The benchmark CRT market underperformed vs. most other fixed income sectors, which finished net positive last month despite general spread product widening, except for HY which continues to show negative returns YTD.
January 2020 Month-End CRTx® Index Rebalancing Update
January’s significant bull-flattening in the CRT credit curve spurred the CRTx® to a relatively strong 1.21% total return to start 2020. This was the highest monthly total return since January of last year, with excess return at 108bps for the month. Despite a relatively strong performance, the CRT sector still lagged rates and IG, which benefited from a substantial bull-flattening of the yield curve and the commensurate duration-related gains, but outperformed HY, which saw overall spreads widen.
December 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index posted a 0.65% total return in December, and finished 2019 up 6.30% (vs. 2.79% in 2018). In a year that saw lower rates and rallying credit buoy most financial markets to solid, broad-based gains, CRT finished the year strongly, with the CRTx® up 1.48% in Q4, outperforming most major fixed income indexes over the same period, except for HY benchmarks which showed quarter returns in excess of 2.00%.
November 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index finished November up 0.48%, beating out most other major fixed income indexes as a 9-10bps backup in the curve weighed on fixed rates. CRT spreads overall moved slightly tighter, and seasoned 2015-2016 LMEZZ paper outperformed, helping drive sector returns. While CRT has lagged rates and corporates for the year, in Q4 the sector has outperformed, with the CRTx® up 83bps two-thirds of the way through the quarter, leading even IG and HY, which currently sit at ~+70-80 bps QTD.
Bloomberg 11/13/2019: JPMorgan Leads ‘Next Little Big Thing’ in Mortgage-Risk Market - "JPMorgan Chase & Co. may be leading the next trend for banks seeking to shift risk away from their mortgage portfolios -- if regulators give Wall Street the green light. The deal last month mimics the credit-risk transfer operations of Fannie Mae and Freddie Mac, using the form of a credit-linked note with payments dependent on those from mortgage loans held on the bank’s balance sheet. It offloaoffloaded a portion of the credit risk on about $750 million worth of mortgages and could “prove to be the next little big thing” if regulators allow such deals to continue, according to Amherst Pierpont Managing Director Chris Helwig....By the end of June they had such transactions on $3.1 trillion worth of mortgages, according to a recent Federal Housing Finance Agency report. Each transaction was structured into multiple amortizing, sequential-paying, floating-rate securities indexed to 1-month Libor, according to Mark Fontanilla, whose eponymous company created the CRTx Credit Risk Transfer Return Tracking Index....."
October 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate Index was up 0.34% in October, bringing the YTD total return to 5.11%. With the Fed cutting another 25bps and the curve bull-steepening for the month, the CRT complex modestly outperformed rates sectors, while incrementally lagging IG/HY. Within the CRT complex, good carry-net-paydowns in 2013-2016 LMEZZ classes compensated for lagging 2019 LMEZZ and SUBs, which saw some widening for the month. Overall CRT excess return volatility was lower in October, in kind with the broader fixed income market. While aggregate CRT volatility remains low (1.82% for the trailing 12 months), SUBs have continued to show higher vol than most bond sectors for the year.
September 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate returned 0.65% for September, finishing up 1.07% for Q3. September was a rare 2019 outperformance month for CRT versus the major fixed income sectors as the recent rate sell-off buffeted longer duration fixed rate markets. A rebound in seasoned 2015-2017 LMEZZ deal vintages and rallying in recent-issue SUB paper led CRT complex performance. The CRT credit curve saw more bull-flattening on solid demand for credit risk, as evidenced by the latest STACR HLTV deal printing at tighter levels. CRT excess return volatility edged up slightly for the month to 1.82%, which is still on the lower end of the fixed income spectrum.
August 2019 Month-End CRTx® Index Rebalancing Update
Amid the highest market volatility so far this year, the CRTx® Aggregate posted a -0.22% decline in August as spreads widened and seasoned paper once again lagged. 2015/2016 LMEZZ deal vintages, and now the 2017 vintage, came under more pressure last month as paydowns remain elevated. Balancing out the CRT complex, 2018/2019 deals continued to outperform, returning 41bps overall in August, while B-pieces in aggregate came in with a solid 73bps return as SUB spreads held in relatively well. Equities were down for the month, while the major fixed income sector indexes benefited heavily from another 40-50bp rally in the curve, especially the longer duration IG segment which continues to be the leading bond sector for the year. While CRT has understandably lagged into the rate rally, excess return volatility is still better contained relative to other major market sectors.
July 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate posted a 0.64% return in July as B-pieces and 2018/2019 deal vintages continued to drive overall sector performance. Versus major fixed income indexes, the CRTx® Aggregate outperformed rates and HY, while largely in line with IG for the month. YTD, benchmark GSE CRT still lags other spread segments, but volatility remains relatively lower. The CRT credit curve has continued to rally since January, with 2018/2019 LMEZZ spreads ~25-35bps tighter and SUB stack prices moving several points higher, while seasoned LMEZZ issues still underperform. CRTx® Aggregate monthly excess returns came in at +44 bps, while volatility was marginally higher at an annualized 2%.
June 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate eked out a 0.27% return in June as seasoned high premiums continued to weigh on the CRT complex, offsetting newer issue returns. For Q2, the CRTx® was up 1.08% and 3.64% YTD, underperforming spread and rates sectors as equities and the curve continued to net rally for the year. Credit remains favored over convexity across the CRT complex with recent issue 2018/19 deal vintages and SUB spreads firming, while older issues moved wider. CRTx® Aggregate excess returns for June were marginally positive at +9 bps, while daily volatility picked up throughout Q2.
The CRTx® Aggregate had its first down month for 2019, posting a -0.19% return in May as equity markets were off sharply and the curve rallied. With credit spreads coming under pressure, the front half of the CRT credit curve moved wider and steeper. Into a 30+ bp rally in rates, the CRTx® Aggregate lagged the major fixed income aggregate, IG, and rates indexes, which all had positive returns for the month, but outperformed HY. CRTx® Aggregate excess returns in May were negative, but daily volatility continued to be lower than the broader fixed income sectors.
April 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate opened up the 2nd Qtr of 2019 with a solid 1.01% total return in April as the CRT credit curve rallied back from March, more than reversing that month’s market value declines. April’s tally brings the CRTx® YTD return to 3.56%. With the yield curve bear-steepening and equities up, the CRTx® outpaced the major fixed income aggregate, IG, and rates indexes, but lagged the continued strong performance in HY. CRTx® Aggregate excess returns for April were +80bps, while the daily volatility trended even lower and remained milder than the other major fixed income sectors.
March 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate returned a modest 2bps for March as the strong rally in rates favored convexity over credit. In Q1/2019 YTD, the CRTx® is up 2.52%, more than offsetting the 1.44% decline in 4th Qtr of 2018. Versus the major fixed income aggregate and credit indexes, the CRTx® lagged for the MTD/QTD/YTD periods, but CRT volatility remained markedly lower on a relative basis. CRTx® Aggregate excess returns for Q1 2019 were +194bps, while the daily volatility for March came back down to pre-Q4 levels.
MF&Co's Mark Fontanilla to Speak at SCI's Risk Transfer & Synthetics Seminar - New York, NY
Mark Fontanilla scheduled to speak at SCI's 3rd Annual Risk Transfer Synthetics Seminar in New York, NY on March 12, 2019. SCI quote from Mr. Fontanilla - "The market value of outstanding U.S. agency CRT securities issued via Fannie Mae’s CAS® and Freddie Mac’s STACR® programs has reached over $50 billion. Based on the CRTx® index, sector total returns came in at 2.79% for 2018, outperforming most major market sectors last year. As part of our panel discussion, we will go over sector performance, structural variations, and the distinctive risk/reward relative value proposition that US CRT securities present to investors."
February 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate posted 67bps in total return for February as the index crosses $50 billion in market value for the first time in history. For 2019 YTD, the CRTx® is up 2.50%, in line with major IG indexes, but well behind the extraordinary performance seen in HY so far this year. As with other spread sectors, the agency CRT market continued to improve in February, with spreads recovering from their Nov/Dec widening (and then some). The CRT credit curve flattened further, and index volatility dropped back towards October levels.
January 2019 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate starts 2019 off firmly positive with a 1.82% in total return for January, after closing 2018 up 2.79% YTD. Financial markets overall rebounded in January, following December’s dramatic selloff and market volatility, and CRT was no exception. Versus other major sector indexes, the CRTx® outperformed broad bond market aggregates and corporate IG, while lagging very strong returns in HY.
December 2018 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate posted -78bps in returns for December, and -144bps for the 4th Qtr, but ended 2018 with a solid 2.79% total return YTD, despite dramatic market volatility through year-end. Both equity and fixed income spread markets experienced significant pressure in December, but the CRT sector outperformed, as major equity indexes closed down significantly for the year (~-5.00% or lower), while broad-market bond indexes ended virtually flat, and major credit-sector indexes closed 2018 in negative territory (~-2.00% to -2.50%).
November 2018 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate declined 38bps in November as credit risk sectors across the fixed income market were again under pressure during the month. This was the 2nd straight month of negative returns for the Index, but the 2018 YTD total return is still solidly positive at 3.61% as of November month end. The CRT sector continues to show favorable performance and less relative volatility versus comparable credit segments such as HY and IG corporates.
October 2018 Month-End CRTx® Index Rebalancing Update
Into a broad-market selloff for bonds, the CRTx® posted a 28bp decline in October, only the 3rd down month this year, ending the Index’s streak of 6 straight months of positive total returns. The CRT market continued to outperform other spread products both month over month and YTD. For 2018, the CRTx® is up 4.01% through October, while credit sectors such as IG and HY indicate either negative or modestly positive total returns for the year.
September 2018 Month-End CRTx® Index Rebalancing Update
The CRTx® returned 49bps in September, making it 6 straight months of positive gains, shrugging off the recent threat from Hurricane Florence. For Q3, the Index was up 1.89%, while YTD returns came in at 4.30%, outperforming most broad-market credit sectors, as the CRT credit curve continued to remain firm. The rebalanced Index market value for October is up slightly to $48.63 billion as 4 classes from the new STACR 2018-DNA3 deal enter the CRTx®, bringing the total index constituency to 184 securities across 63 deals.
Bloomberg 9/13/2018: Mortgage-Backed Securities Traders Have Seen This Storm Before - "Hurricane Florence is barreling toward the southeast coast of the U.S. and billions of dollars of commercial and residential properties tied to mortgage-backed securities. Traders aren’t too worried.......That’s because fewer mortgage-backed securities are in the landing zone compared with last year’s devastating storms, which rattled markets but in the end didn’t end up causing major losses or defaults.......In part of the RMBS market without government backing, so-called credit risk transfers -- which were sold to investors by Fannie Mae and Freddie Mac -- about 4 percent of the nearly $45 billion market are exposed to the hurricane, according to Mark Fontanilla...."
August 2018 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate continued its 3rd Qtr march higher, adding another 67 bps in August to bring the YTD total return to 3.78%, compared to the 7.42% index total return over the same period in 2017. While the 2018 YTD is behind last year, CRTx® returns are still healthy and have outpaced similar-rated high yield corporate sectors so far. Further bull-flattening in the credit curve helped nominal return attribution look similar to last month, with paydowns providing another 3bps of drag, and carry was just 1.5bps lower due to 1 less day of accrual between month ends.
July 2018 Month-End CRTx® Index Rebalancing Update
The CRTx® Aggregate monthly returns for July were up 0.71%, the 4th straight up month in a row, with sector tone improving versus June. Firmer spreads, a few days extra carry, and steady paydowns helped July’s index performance outpace June. Paydowns continued to come in at approximately 1% of the Index’s Aggregate UPB for July, providing a recently consistent -3pbs in drag to overall returns.
MF&Co Introduces RNI™ (Rolling New Issues) Version of The CRTx® Index
Mark Fontanilla & Co., LLC (MF&Co) announced today the introduction of the CRTx® RNI™ (Rolling New Issues) Index, a new variation of its benchmark agency credit risk transfer (CRT) securities total return index, the CRTx®. The CRTx® RNI™ is a first-of-its-kind fixed income index that tracks the performance of a dynamic “rolling” basket of the most recently originated CRT securities that have been issued by Fannie Mae (FNMA) and Freddie Mac (FHLMC) within a trailing 12-month period.
June 2018 Month-End CRTx® Index Rebalancing Update
CRTx® posted positive monthly returns of 0.10% for June, despite prices overall moving lower. Q2 total return outpaces Q1 by 22bps, index YTD up 2.36%. Rebalanced aggregate Index market value for July rises 1.0% versus May to $47.02 billion. New STACR 2018-DNA2 classes enter the CRTx® for July.
The CRTx® Aggregate monthly index returns for May 2018 were positive, up 0.34% for the month versus 0.85% in April. While sector prices month over month were incrementally lower, May benefited from an extra day of carry versus April (31 days vs. 30 days) and marginally bigger coupons as short rates continued to inch higher. Paydowns held at a relatively steady pace for the month (approximately 1% of the Aggregate UPB), but continue to provide a modest drag to Index returns given the sector premiums.
April 25, 2018 (Charlotte, NC) – Mark Fontanilla & Co., LLC (MF&Co) announced today the launch of the CRTx™ Credit Risk Transfer Return Tracking Index. The CRTx™ is the first ever fixed income index that tracks the total return performance of agency credit risk transfer (CRT) securities issued by Fannie Mae (FNMA) and Freddie Mac (FHLMC).
MF&Co Designated Exclusive Marketer for Dilworth Car Wash Inc.
October 6, 2017 (Charlotte, NC) – Mark Fontanilla & Co., LLC announced that it has been engaged as the exclusive marketer for the sale of the Dilworth Car Wash Inc. business located at 2507 Park Rd in Charlotte, NC. The venerable family-owned Dilworth Car Wash has served the Charlotte, NC community since 2006 from its long- standing location at the junction of Park Road and Kenilworth Avenue, and is now being offered for sale by its founders after more than a decade of success and profitability. The Dilworth Car Wash provides a full range of auto cleaning and detailing services to both individual and commercial customers, and is one of the only full-service car washes in the area to offer hand washing services on-premises.
“The Dilworth Car Wash is well known in the Charlotte area, has a great reputation with numerous loyal customers, and occupies an enviable, easy-to-access location in the heart of Dilworth”, said Mark Fontanilla of MF&Co.
Contributing Author in Fabozzi Handbook of Mortgage Backed Securities, 7th Edition
This edition of The Handbook of Mortgage-Backed Securities, the first revision following the subprime mortgage crisis, is designed to provide not only the fundamentals of these securities and the investment characteristics that make them attractive to a broad range of investors, but also extensive coverage on the state-of-the-art strategies for capitalizing on the opportunities in this market.