This post was originally published on this site
https://www.youtube.com/watch?v=TcPC1zKlaZY
Interest rate swap spreads are negative. These ‘underwater’ derivatives indicate very high market demand relative to money dealer supply. So, if bank balance sheet capacity remains constrained–available only at a premium–that means there’s not enough ‘money’ in the world economy.
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski.
Follow
Twitter: https://twitter.com/JeffSnider_AIP
Twitter: https://twitter.com/EmilKalinowski
Reference
Hey Jay, Maybe Check The Swaps Before Committing to Taper: https://bit.ly/3ET9VjM
(WSJ) Spread on 30-Year Treasury Swaps Turns Positive: https://on.wsj.com/2XNJLxr
Alhambra Investments Blog: https://bit.ly/2VIC2wWlin
RealClear Markets Essays: https://bit.ly/38tL5a7
Topics
00:00 Show Intro: The Fed wants to taper it’s QE, rate swap spreads recommend against the move.
00:45 Interest rate swap spreads turned negative for the first time ‘ever’ in 2008 – shocking.
01:56 Can Y2K still happen? Emil Kalinowski thinks so – he’s also bananas.
02:43 Interest rate swap spreads – what are they, what is the ‘textbook’ interpretation?
05:54 IRS are bank balance sheet tools to manage risk, growth and balance sheet capacity.
07:14 Negative IRS spreads signal there’s a supply (down) and demand (up) ‘imbalance’ / reset.
07:46 Bank balance sheet capacity grew exponentially from the 1950s to 2008. Then? Dead-flat.
10:41 IRS spreads did peek above zero in July 2013, a short-lived normalization.
13:01 IRS spreads became less negative since Mar. ’20 but have gone sideways since Feb. ’21.
15:17 Show Outro: A money-flooded economy would not be registering negative IRS spreads.
Podcast Locations
Vurbl: https://bit.ly/3rq4dPn
Apple: https://apple.co/3czMcWN
Deezer: https://bit.ly/3ndoVPE
iHeart: https://ihr.fm/31jq7cI
TuneIn: http://tun.in/pjT2Z
Castro: https://bit.ly/30DMYza
Google: https://bit.ly/3e2Z48M
Spotify: https://spoti.fi/3arP8mY
Pandora: https://pdora.co/2GQL3Qg
Breaker: https://bit.ly/2CpHAFO
Castbox: https://bit.ly/3fJR5xQ
Podbean: https://bit.ly/2QpaDgh
Stitcher: https://bit.ly/2C1M1GB
PlayerFM: https://bit.ly/3piLtjV
Podchaser: https://bit.ly/3oFCrwN
PocketCast: https://pca.st/encarkdt
SoundCloud: https://bit.ly/3l0yFfK
ListenNotes: https://bit.ly/38xY7pb
AmazonMusic: https://amzn.to/2UpEk2P
PodcastAddict: https://bit.ly/2V39Xjr
Create Stunning eBooks & Reports in 2 Minutes
Without Writing a Word More Sales, Leads, Customer Engagement. Become an Author, Create Information Products. |
How to Buy Cheap Shoes in Bulk
from Wholesale Shoes Suppliers How to buy wholesale shoes from the USA. |