Biography
David Schawel, CFA, is a fixed-income portfolio manager in Raleigh, North Carolina, and Durham, North Carolina. Previously, he worked in New York City in both investment banking and equity research.
Economic observers and money managers have faced a confusing environment since last summer, when then-Chairman Ben Bernanke shook the complacency of the market and signaled a tightening.
Markets are made at the margin, and in this case the tightening,… READ MORE ›
Retail investors are currently pouring money into “bank loan” funds at a record rate, and the longer term implications are cringe worthy.
The popularity and rationale for investor interest has some merits, but only on the surface. The reasoning… READ MORE ›
This economic recovery has been slower than expected, so it’s easy to fall into the trap of focusing on the negatives.
To be fair, there is no shortage of these and we are constantly reminded of them.
While the… READ MORE ›
This is a bull case for the equity in a subprime lender formerly owned by AIG. David contends the company may be in for a bright future due a confluence of factors that would have seemed unlikely just a few months ago, including the return of the asset-backed securities (ABS) market and the credit quality of subprime borrowers. As you read, imagine how you would have reacted to these same words written just a few years ago.
Value in the fixed-income markets, as in other asset classes, is driven in large part by fear and greed. The easy monetary policy communicated to the market through “QE infinity” in fall 2012 fueled a chase for yield that was already… READ MORE ›
The rapid selloff in the US Treasury market has come as a surprise to many, including such famous bond investors as Bill Gross, CFA, and Jeffrey Gundlach. As the chart below shows, 10-year yields on US Treasuries (10yr UST) are about… READ MORE ›
The release of last week’s Fed minutes was received in typical fashion by the mainstream media. They spent most of the time analyzing any use of the word “taper”, a conversation that’s well exhausted itself by now.
More astute observers… READ MORE ›
Investment professionals say over and over that this economic recovery is different, and with good reason. Gone are the days where the leveraging of consumer balance sheets is a primary economic growth driver. As most are well aware, during… READ MORE ›
As the market debates whether the Fed should “taper” the pace of QE asset purchases, an uncomfortable truth is beginning to face market participants. With the majority of QE benefits already having been felt, the tapering of QE is inevitable at this… READ MORE ›
One of the primary objectives of the Fed’s policy was to enable as many homeowners as possible to refinance into a lower mortgage rate. The Fed affected rates not only through its language and guidance but also through the… READ MORE ›