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Introduction The Fisher equation is a way of decomposing a nominal yield into three components: Real yields Inflation expectations Inflation risk premium It is expressed as: (1 + nominal rate) = (1 + real rate) (1+ inflation expectations) (1+ inflation risk premium) It is common for practitioners to combine the…

Commercial mortgage-backed securities (CMBS) have been one of the most successful sub-classes in the structured finance clade of the fixed-income genus. This article reviews the performance of the asset class, focusing on the nexus of CMBS collateral with specific aspects of the real economy and financial markets. The goal is…

Background A former U.S. Defense Secretary responded to a U.S. Department of Defense news briefing question in 2002 about the lack of evidence linking the government of Iraq with the supply of weapons of mass destruction to terrorist groups about known knowns; “there are things we know we know. We…

Why Python? Financial professionals are expected to be able to work with increasingly large datasets. Whether you are analyzing the bank’s trade positions or working tirelessly to find exploitable anomalies in the plight for alpha, you must learn to efficiently clean up, sift through, and interpret vast amounts of data.…

Brighter Days Ahead Like so many, I am cautiously optimistic that the end of the COVID-19 pandemic is in sight. By December 2020, COVID vaccines were developed and tested. Now they are being delivered, giving us all hope.[i] However, variants of the virus may prolong the disruption to everyday lives,…

The Evolution of Student Loans The new administration and the hyperbole around socialism has led many pundits to discuss the student loans that are on the U.S. Government’s balance sheet. There are currently over $1.5 trillion of student loans outstanding. These loans can be categorized as either government backed/originated or private…

Landscape for Change The challenge for the modern organization is to attract, retain, and maximize the potential of their people. These key efforts are paramount to creating, and maintaining, vibrant future organizations. Thirty-five years ago, before the domination of Silicon Valley across America, physical assets made up nearly half of…

During 2020 COVID-19 crisis, better liquidity planning has been paying off Ruth Porat, CFO of Alphabet, Inc., once quoted, “Liquidity is oxygen for a financial system.” And when better to have an abundant supply than during the past ten months? The2020 COVID-19 pandemic-induced financial market crisis was just another in…

In July 2020, GFMI delivered a virtual seminar on Modern Monetary Theory (MMT). One of the questions posed to the audience was “Does too much money in the financial system, as measured by the monetary base, M1 or M2, cause inflation?” Nearly 70% of the respondents believed it did. This…

A Storm Arrives In my study of economics, I don’t recall ever evaluating the impact of health policy or crisis on our economy. Yet, here we are. The storm of Covid‑19 crept up on us quickly and violently. We are now dealing with this crisis in our country and around…

Blockchain Technology – Transforming Global Financial Markets Bitcoin and cryptocurrencies, in general, have been under strict scrutiny by both regulators and leaders in the financial industry. We must understand, however, that blockchain technology does not equate to bitcoin or to cryptocurrencies. Bitcoin is only one example of a blockchain technology…

Déjà Vu All Over Again When the Affordable Care Act (ACA) was passed in 2010, it promised to provide Americans with better access, better outcomes, and reduced costs for our healthcare.i Great news!Of course, it would take some time to have it all implemented. There could be changes in delivery…