Negative Convexity

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Akash Kanojia

Ex–Wall Street bond investor turned entrepreneur. I explore how money, risk, and human psychology collide, writing essays on finance and decision-making at Negative Convexity.

📍 Austin, Texas, USA

Did You Know Japanese Debt-to-GDP is Declining?

Japan's debt-to-GDP is falling as nominal GDP growth outpaces debt accumulation—the inflation regime finally working after 30 years of trying. But bondholders are accepting deeply negative real returns. Why doesn't the market believe inflation will persist?

Resisting Bullies Is Good for the Economy

Two historical episodes show what happens when Fed chairs face presidential pressure: Burns capitulated to Nixon and got stagflation. Eccles resisted Truman and won independence. Powell has chosen resistance. History suggests that's good for the economy.

Are a Bunch of Law Schools About to Shut Down?

I started digging into the One Big Beautiful Bill Act (OBBBA) a few days ago thinking I'd write about its impact on student loan markets. What I found instead was more interesting: a provision that could force the closure of many law schools, depending entirely on how the

How Long Can the Market Remain Irrational?

I've been underweight stocks since 2018, thinking valuations were too high. I was wrong. This is my analysis of what the Shiller CAPE ratio actually tells us about market timing—and what it doesn't. A painful lesson in the difference between valuation and timing, with 150 years of data.

Today’s 2.7% CPI Release Is Nothing to Celebrate

The market and the White House are celebrating today’s cooler-than-expected Consumer Price Index (CPI) data release, which came in at 2.7% annualized inflation from November 2024 to November 2025. However, I don’t see anything to celebrate. 2.7% Is Par for the Course for 2025—and That’

We Are Looking at a Hawkish FOMC that Won’t Cut in December

Fed funds futures overestimate December cut odds. Regional Fed presidents have turned hawkish after hearing inflation concerns from business leaders. Tariffs aren't transitory, and the Fed's suddenly worried about missing its 2% target for 5 years. Expect rates to hold.

What is Realistic? Rethinking Realistic Financial Goals and Comfort Zones

Are your financial goals realistic—or just limited by your comfort zone? This essay explores how environment shapes what feels possible, why effort expands the boundary of “realistic,” and how to choose circles that broaden your sense of what’s achievable.

Toxic Leadership: Micromanagement in the Workplace (Part 5 of 7)

Micromanagement erodes trust and stifles creativity. Part 5 of my toxic leadership series explores why leaders micromanage, how it harms confidence and productivity, and why absentee managers are just as damaging.

U.S. Macro Thoughts 18-Aug-2025

U.S. macro update as of August 18, 2025: dollar depreciation, persistent trade deficits, a potentially dovish Fed, inverted yield curve, strong equities, and weak labor data amid inflation pressures. Political interference looms large. Markets are euphoric; fundamentals are not.

Toxic Leadership: Passing the Buck (Part 4 of 7)

Part 4 of my toxic leadership series explores blame-shifting and scapegoating—why leaders deflect responsibility, how it erodes trust and productivity, and why the most secure leaders own their mistakes while the insecure create a culture of fear and CYA.