Posts by Genoa Asset Management

October 28, 2022 The fixed income markets are abuzz with the potential of a Fed Pivot, or the idea the Fed might change from hiking to pausing to cutting. We say, will the Fed just relent? The Fed, focusing on not repeating the mistakes of the 70’s, is quickly raising rates to a

October 14, 2022 It’s an old saying and it’s hard to refute. Can you have your cake and eat it too? Sometimes in the fixed income markets, the answer is yes you can. Each day, the market shifts, rates change, and laws and regulations get passed. While these changes present challenges to some,

October 7, 2022 https://genoaam.s3.amazonaws.com/Channeling+Their+Inner+Volcker+10-7-22.mp3 Paul Volcker was Chairman of the Federal Reserve Board of Governors from 1979 through 1987. He and his board are widely credited with curbing the high rate of inflation in the late 70’s and early 80’s. He accomplished this by raising the overnight fed funds rate to a

September 20, 2022 https://genoaam.s3.amazonaws.com/All+Quiet+9-19-22.mp3 The home of the Federal Reserve Bank is on Constitution Avenue in Washington, DC. That’s just a few blocks away from our headquarters so we speak from experience when we say: As the Fed considers a historic third 75 basis point increase, it’s quiet on Constitution Avenue. FOMC

September 9, 2022 Let me start by expressing our condolences to the Royal Family and the English people for the loss of their monarch, Queen Elizabeth II. She oversaw tremendous change during her 70-year reign, much of it brought on by major discoveries in physics, chemistry and technology. Consider the impact of

September 2, 2022 Short and to the point. That’s how Chairman Powell’s annual speech was described. Not known for his brevity, and expected to speak for thirty minutes, the Chairman spoke for a little over eight minutes and the message was clear. Expect higher rates, for a longer period, potentially causing economic

July 1, 2022 We said it, the Treasury Secretary said it, and even the Fed Chair has said it, the Fed is behind inflation and needs to do historic interest rate increases to catch up to inflation. But given the potential of another 75-bps increase, the downturn in some commodities and

June 17, 2022 Friday the Bureau of Labor Statistics reported the May inflation numbers and they didn’t show any improvement. We have been in this above 4% inflation environment for over a year, and this latest print of 8.6% is the highest since December 1981. So it’s a good question

June 10, 2022 Earnings season and investor days always make for great sound bites. No one is better at this than Jamie Dimon at JP Morgan. His wonderful headline: “You know I said there’s storm clouds, but I’m going to change it… it’s a hurricane” Jammie Dimon, JP Morgan Analyst Day But

May 27, 2022 What a difference a week makes. Markets shrugged off the higher rate fears, shook off the recession worries and got down to buying. From last Thursday, May 19th through yesterday May 26th, many Bloomberg fixed income indices rallied strongly. Led by the High Yield Index up 2.80%,