- Speaking on the earnings call with KBW's Bose George, CYS Investments (CYS -1.3%) CEO Kevin Grant reminds it was a year ago this month when the we all expected the Fed to hike in December and then four more times in 2016.
- The conventional wisdom today, says Grant, is a hike in December and then two times in 2017 - in Grant's opinion, maybe more aggressive than what might actually happen.
- He notes Q4 GDP could easily come in at just around 1% and Q1's of late have been chronically soft. "In six months we could be having this conversation and wondering if we're going to tighten at all in 2017," says Grant.
- So for now, Grant says, he's not "super-defensive" on leverage.
- Earnings call slide deck
- Previously: CYS Investments earns 20% annualized return on book value in Q3 (Oct. 26)