Posts by Genoa Asset Management

March 17, 2023 The market was a rollercoaster the last ten days, in particular the last week. On March 8th the 2-Year US Treasury yield was at 5.07%. By the 13th the yield sank (prices rose) to 3.98%. The note then proceeded to swing by 15-30 bps each day this week! Banking industry revelations,

March 13, 2023 Over the weekend, Silicon Value Bank (SIVB) and Signature Bank New York - SBNY were seized by regulators and First Republic Bank (FRC) taped additional liquidity. The Fed and the market listened to our post and took drastic action to stop the run on the banking system. This

March 10, 2023 Yesterday SVB Financial (SVB) parent company of Silicon Valley Bank announced they are doing a significant capital raise to cover losses from their portfolio of… Mortgage backed and Treasury Bonds. SVB stock dropped 60%, bonds and preferred issues were down significantly and Moody’s announced a downgrade of the

February 24, 2023 Sometimes markets can be clear, and you can see direction for as far as the eye can see. Other times, the vision is hazy, cloudy, or even stormy. Uncertain times make us long for clarity. We regularly run through an exercise to identify the source of the uncertainty

February 17, 2023 Markets rarely ever move in a straight line. Neither does inflation or the economy. And that is what we found in the last couple of weeks. After the strong employment report (that many discounted), we had more reports on Retail Sales, the Consumer Price Index and the Producer Price Index. All of these important reports showed: a

January 24, 2023 Take a look at the yield curve chart below. The gold line is the curve on October 24, 2022 (The day the yield on the 10-Year US Treasury hit its most recent high), the green line is January 18, 2023. Since that point in October, the curve has twisted

January 13, 2023 Investing in fixed income is all about hierarchy. At the top are US Treasuries. They are the safest, most liquid fixed income investments in the market. Every other fixed income security trades off where the corresponding US Treasury issue is trading. That is for good reason, if you can buy a

January 6, 2023 Fixed income ended 2022 on a negative note. With the October and November CPI prints showing disinflation, the markets anticipated a more dovish Fed. However, the Chairman was resolute, and bond markets dropped as yields rose. So where do we stand after improving inflation reads in Europe and the US?