Biography
David Schawel, CFA, is a portfolio manager for New River Investments in the Raleigh/Durham, North Carolina area. Previously, he managed a $2-billion fixed-income portfolio for Square 1 Financial, which he joined in 2008.
New and existing bond investors now have the benefit of a much steeper yield curve.
The news doesn't give insight into the timing of a potential tightening, but it does shed light on a new potential tool that may become instrumental in setting short term rates. Furthermore, it shows the Fed isn't sitting back on its hands as it charts an eventual exit strategy from its current unprecedented balance sheet expansion.
David Schawel, CFA, discusses the importance of the actions taken by the Fed when contrasted with the activity of the banking system as a whole in regards to the most recent economic recovery.
Through the years, while the Fed has bought securities (as well as implemented such programs as the Home Affordable Refinance Program for the credit-impaired borrower to refinance), more and more homeowners have refinanced into a lower-cost mortgage. As a result, the landscape of the MBS market has dramatically changed.
"Constant Maturity Cap" buyers may be proven correct one day but, until then, the high cost of "disaster" insurance will be a tailwind for the sellers of this skew.
The popular pundit line has been that QE (quantitative easing) is mainly psychological, but do the data support this claim? Is the reason for the steady move up in equity markets really just as simple as the Fed’s balance sheet expanding?
As the fifth anniversary of the financial crisis approaches, David Schawel, CFA, discusses CLOs – what they are, how they’ve performed, who is buying them, and the value they offer – in regards to QE.
Observant readers will have noted that various sell-side researchers and other market commentators have mentioned “convexity hedging” as something that could exacerbate a selloff in UST rates. Here I take a high-level look at what convexity hedging is and how it affects the UST market.
In this post, David Schawel, CFA, looks at two characteristics of the high-yield market that have changed over the past few years without many investors realizing it.
Loomis Sayles is undeniably one of the pre-eminent names in the world of bond funds. While the big name at Loomis Sayles is the lead manager Dan Fuss, CFA, co-manager Matt Eagan, CFA, plays a crucial role in managing the Loomis Sayles Bond Fund and other funds.