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What Will Break First? | Joseph Wang & Peter Crane

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Manage episode 342259890 series 3300108
Innhold levert av Blockworks. Alt podcastinnhold, inkludert episoder, grafikk og podcastbeskrivelser, lastes opp og leveres direkte av Blockworks eller deres podcastplattformpartner. Hvis du tror at noen bruker det opphavsrettsbeskyttede verket ditt uten din tillatelse, kan du følge prosessen skissert her https://no.player.fm/legal.

With the Fed hiking interest rates rapidly in order to fight inflation, cash is finally earning its highest yield since before the Great Financial Crisis. Peter Crane, President of Crane Data, and Joseph Wang, former senior trader for the Federal Reserve, join Jack to discuss how the growing attractiveness of cash might cause markets to “break” as investors pull capital out of risk assets and deploy it in cash and money market funds, which harvest yields on cash by investing them in ultra-short duration loans to extremely safe counterparties, primarily the U.S. government and the Federal Reserve. Filmed on September 22, 2022.

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Use code GUIDANCE250 to get $250 off tickets to Blockworks’ London Digital Asset Summit: https://blockworks.co/events/digital-asset-summit-2022-london/

--

Follow Peter Crane on Twitter https://twitter.com/cranedata

Follow Joseph Wang on Twitter https://twitter.com/FedGuy12

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance

Follow Blockworks on Twitter https://twitter.com/ForwardGuidanceGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

--

(00:00) Introduction

(02:10) Reflecting On the Fed's September FOMC Meeting

(04:48) What Is A Money Market Fund?

(14:37) What Will Break?

(18:41) Maturity & Composition

(25:31) Why Are There No Inflows Into Money Market Funds?

(27:37) Quantitative Tightening (QT)

(31:316) Who Invests In Money Market Funds?

(39:19) Offshore Dollar Money Market Funds

(43:03) New SEC Regulation on Money Market Funds ("Swing Pricing")

(51:45) What Part of The Financial System Will Crack First?

(1:05:12) How Bad Is Treasury Liquidity?

(1:06:33) Pete Crane on Stablecoins

(1:10:55) Joseph Wang On Sales of Mortgage-Backed Securities

(1:12:16) Outro

--

Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

  continue reading

365 episoder

Artwork
iconDel
 
Manage episode 342259890 series 3300108
Innhold levert av Blockworks. Alt podcastinnhold, inkludert episoder, grafikk og podcastbeskrivelser, lastes opp og leveres direkte av Blockworks eller deres podcastplattformpartner. Hvis du tror at noen bruker det opphavsrettsbeskyttede verket ditt uten din tillatelse, kan du følge prosessen skissert her https://no.player.fm/legal.

With the Fed hiking interest rates rapidly in order to fight inflation, cash is finally earning its highest yield since before the Great Financial Crisis. Peter Crane, President of Crane Data, and Joseph Wang, former senior trader for the Federal Reserve, join Jack to discuss how the growing attractiveness of cash might cause markets to “break” as investors pull capital out of risk assets and deploy it in cash and money market funds, which harvest yields on cash by investing them in ultra-short duration loans to extremely safe counterparties, primarily the U.S. government and the Federal Reserve. Filmed on September 22, 2022.

--

Use code GUIDANCE250 to get $250 off tickets to Blockworks’ London Digital Asset Summit: https://blockworks.co/events/digital-asset-summit-2022-london/

--

Follow Peter Crane on Twitter https://twitter.com/cranedata

Follow Joseph Wang on Twitter https://twitter.com/FedGuy12

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance

Follow Blockworks on Twitter https://twitter.com/ForwardGuidanceGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

--

(00:00) Introduction

(02:10) Reflecting On the Fed's September FOMC Meeting

(04:48) What Is A Money Market Fund?

(14:37) What Will Break?

(18:41) Maturity & Composition

(25:31) Why Are There No Inflows Into Money Market Funds?

(27:37) Quantitative Tightening (QT)

(31:316) Who Invests In Money Market Funds?

(39:19) Offshore Dollar Money Market Funds

(43:03) New SEC Regulation on Money Market Funds ("Swing Pricing")

(51:45) What Part of The Financial System Will Crack First?

(1:05:12) How Bad Is Treasury Liquidity?

(1:06:33) Pete Crane on Stablecoins

(1:10:55) Joseph Wang On Sales of Mortgage-Backed Securities

(1:12:16) Outro

--

Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

  continue reading

365 episoder

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