30 Year Treasury in the News: Why it Matters to Short Term Investors
I’ve been watching the yield on the 30-year Treasury closely for the last several weeks even though my main focus is on short-term markets. That’s because it is sending important signals about changing market conditions that will affect those who invest in cash vehicles, bank deposits and short-term securities whose investment horizon is no longer […]
LGIPs Seek New Markets
Local Government Investment Pools were originally designed to help local governments—you know, cities, counties, school districts, etc.—invest their funds. But times change and enterprising funds seek opportunities to expand their offerings. An interesting example is a new program that the Illinois Treasurer is poised to open for Illinois-based non-profits. The new portfolio will be an […]
A Deluge of T. Bills
Treasury is about to flood the market with more than $400 billion of Treasury Bills in coming weeks to fill a gap in funding the federal deficit. • This is not a surprise to those who make it their business to know such things, but nevertheless interesting as it evidences the size of the […]
Whatever it Takes. The Warsh FOMC
Kevin Warsh’s news conference at the conclusion of the Federal Open Market Committee meeting on Wednesday revealed two things: Warsh may say he’s abandoned the Fed’s “forward guidance” approach to monetary policy but in reality, he seems to have doubled down on the application of words, rather than actions, to steer the economy. Rather than […]
Is Crypto in Your Future?
Crypto was a hot topic at spring and annual conferences of many government associations as industry advocates swarmed to gain attention and government officials sought to understand if/whether/how crypto might be implemented in their organizations. The buzz is long on promise and concept but short on real experience. Crypto assets are barely a rounding amount […]
Decoding Kevin Warsh
Twice a year the chair of the Federal Reserve testifies before Congress on monetary policy. It’s a requirement that stems from 1978 legislation that provides accountability and oversight of the independent central bank. This week’s sessions provided some insights into principal elements of monetary policy that are not ordinarily in the rate-setting headlines that monopolize […]
Banks Have Changed Their Business Model and Public Funds Investors Are Implicated
There was a time when banks seemed to dominate the public funds investment world. For the thousands of small and mid-sized local governments they were the go-to source of investment income. When a city, town or school district had money to invest, they sought bids from banks, placed the funds with the one offering the […]
Halftime: What’s in Store for the Balance of 2026?
Last week’s Crane Money Fund Symposium brought together portfolio managers who invest assets in the $8 trillion money market fund industry along with those who invest portfolios for the major banks. It’s a small number of people whose views on the economy and investment markets are incredibly important in setting the course for short-term […]
Transparency: The Fed’s Mandate
Federal Reserve Chair Kevin Warsh’s post Federal Open Committee meeting news conference got me thinking about how much information transparency has shaped the financial markets since I entered the business nearly 50 years ago, and the implications if the Fed moves to reduce transparency and access to information by ordinary investors, including those who manage […]
Why the Director of National intelligence is Involved in the Federal Agency Market
It may not be immediately apparent, but President Trump’s naming Bill Pulte Interim Director of National Intelligence has implications for the Federal agency market where $450 billion of public funds are invested. Before you dismiss this as crackpot, consider: Pulte is also the head of the Federal Housing Finance Agency and chairman of both Fannie […]