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December 2007
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ALUMNI NEWS |
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Market Worries? Three Friends Reunite at Kogod, Share Financial Insight With increasingly wild swings in the stock market and an economy that continues to generate varying opinions from the financial experts, the Kogod School of Business welcomed back three pros of its own for a mini-reunion – and discussion - on Wednesday, November 28.
Steve Gaenzler, KSB/BSBA ’92, Eric J. Green, KSB/BSBA ’92, and David G. Nason, KSB/BSBA ’92 and WCL/JD ’95, spent time visiting the school they called home 15 years ago before taking part in a panel presentation, where they spoke about their career paths, the current state of the economy, and answered the questions of nearly 50 students and AU community members. The event was held in the Butler Board Room, and, fittingly, moderated by former instructor to all three alums, Professor of Finance and Real Estate Robert Losey. The three men were Alpha Sigma Phi fraternity brothers while at AU and clearly hold a spot in each other’s cell phone directory. Gaenzler spoke at Nason’s wedding. Green and Nason remember going on a double date together to the National Zoo and are both married to AU alumnae. These are friends for life who hold their brotherhood, memories, and education close to heart. It just so happens that all three men have also worked hard and smart enough to position themselves into equally impressive careers within their respected business sectors. Gaenzler got his first job out of college within the capital markets area at Freddie Mac - through the AU Career Center - a fact that he was quick to point out to students. “I always plug the career center because they helped get me where I am today.” Nowadays as a senior managing director and portfolio manager at Arlington-based investment banking firm Freidman Billings & Ramsey (FBR), Gaenzler co-heads the fixed-income asset management group he helped to create with a partner several years ago.
When asked about the state of the economy and whether a recession is looming, Green, a senior portfolio manager with PENN Capital Management who manages a team of 10 analysts and more than $5 billion, is optimistic. “When everyone (the media) is so negative on something, that’s usually the time to buy,” he said. Gaenzler agreed for the most part. “The consumer has been stretched fairly thin, but the resiliency of the American people should prevent a recession in 2008.” Both also pointed out how the media so often focuses on negatives in the market, presenting information in an exaggerated, doomsday sounding fashion only to get more viewers, sell more magazines, and get more clicks of the mouse. “I’m going to present a piece of information two different ways, both of which are accurate,” Gaenzler told the audience. “No. 1 scenario: 20 percent of subprime loans are in default or foreclosure status. OK, now scenario two: 97 percent of current mortgage loans are being paid on time and are in good standing with their lenders. Since subprime mortgages only make up a smaller percentage of all mortgage loans, both are true, yet the media will use a statistic like that to shock the consumer.” Nason, who serves as an assistant secretary for the U.S. Department of Treasury for financial institutions and has obvious insight into the current banking woes, took the high road on the recession question, but did get some laughs from the audience during the presentation. “I’m making the least amount of money at this table, but that’s OK because I’m serving the greater good and making sure these guys (motioning to Gaenzler and Green) have a market in which to work…but it’s a fascinating time to be working in the Treasury due to a lot of anxiety in the market. It’s a very rewarding and stressful job.” As the one man on the panel who has worked with Alan Greenspan and Treasury Chair Ben Bernanke, Nason also offered up a bit of solid advice to students. “Have a good skill set. Plan for the future and don’t focus on just one sector. If you bet on only one sector being hot for when you are looking for a job, you’ll probably lose. But if you bet on the skill set, so that you’re better prepared for the future, you’ll most likely win.” Green, who spoke candidly about his views on the market during the entire visit, touched on a more personable side of the successful business equation. “It’s really important to be interactive with people,” he noted. “At the end of the day, it’s about relationships. Treat people right.” Interested in hearing the entire presentation? Go online for a downloadable podcast. -David Ferraris | |||||
