Posts by Genoa Asset Management

April 29, 2022 As we mentioned last week, over the next year, we think there are three scenarios for the economy and the fixed income market. All three scenarios hinge on the trajectory of inflation. Inflation is either going to peak and cool off, or it’s not peaking or cooling off. If it’s

April 22, 2022 It’s been a dreary time in bond land. It seems every day the market just grinds continually lower, wearing on minds, emotions, and portfolios. This was supposed to be the capital preservation part of the portfolio, right? And didn’t the Fed just start raising rates? If we believe the futures market,

April 1, 2022 There are many advantages to investing in bonds, but one of my favorites is the ability to forecast the future. I’m not talking about if economy is going into a recession or if the Bengals are going to win the Superbowl, I’m saying given a set of

Written by Peter Baden, CFA, Chief Investment Officer https://soundcloud.com/fmacceleration/genoa-asset-management-fixed-income-sector-review?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing In case the market didn’t hear him at his press conference last Wednesday, Jerome Powell, the Acting Federal Reserve Chairman, gave a very clear speech on Monday at the 38th annual NABE Economic Policy Conference. One early quote: My colleagues and I are

Written by Peter Baden, CFA, Chief Investment Officer https://soundcloud.com/fmacceleration/genoa-asset-management-are-we-inverted-yet?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing The much anticipated day came and the Fed, once again, did not disappoint. Wednesday, March 16th is the start of the next interest rate cycle. By raising the Overnight Fed Funds rate by 25 basis points, to a range of 0.25-0.5% the Fed is

Written by Peter Baden, CFA, Chief Investment Officer https://soundcloud.com/fmacceleration/wall-of-worry?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing As we count the worries on investors’ minds, we can understand the move to reduce risk. Top of the list of worries: A war, worse, a war zone that includes nuclear power plants, in Europe. Next, The decoupling of the Russian and

Written by Peter Baden, CFA, Chief Investment Officer https://soundcloud.com/fmacceleration/war-vs-inflation?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing Fixed income markets absorbed a lot of information this week, Inflation, Fed participant speeches and a war in Europe. Of the three Inflation concerns won out. The yield on the 10 year US Treasury started the week at 1.931% and as of this

Written by Peter Baden, CFA, Chief Investment Officer https://soundcloud.com/fmacceleration/genoa-what-happens-when-rates-go-up?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing As we foreshadowed in our earlier updates, the January CPI report was going to be high, and it did not disappoint. The market reaction was swift, with the yields rising across the board. When some Fed governors used speaking opportunities to push to

The municipal bond market today is dominated by institutions, large insurance companies and banks are an important part of the municipal bond market. Tax-free municipal bond funds and ETFs have become a much larger percentage of the municipal market over the years. Wealthy investors who previously were sold individual bonds for their portfolios are now becoming more accustomed to purchasing funds and ETFs for their municipal fixed income needs. In addition to the funds, separate account managers like Genoa Asset Management are now playing a greater role in the municipal bond market.

Written by Peter Baden, CFA, Chief Investment Officer Headlines of the Week “Life is so Uncertain” – Lyle Lovett “Hear I Am” Turning points in the market produce plenty of uncertainty and with it volatility. Let’s review, a few months ago the Fed was keeping rates low, buying bonds, and not