Carolyn Sissoko & Joseph Wang on the Fed Pivot and “Too Big To Fail” In Private Equity & Leveraged Loans
Carolyn Sissoko, senior lecturer at University of the West of England, joins Forward Guidance alongside Joseph Wang, CIO of Monetary Macro and author at FedGuy.com, to discuss the Federal Reserve’s public acknowledgement that it may cut interest rates in 2024, the collateral supply effect, and the merging of of credit allocation facilities and money markets. Filmed on December 19, 2023.
Today’s interview is brought to you by Sustainable Bitcoin Protocol, an environmental solution for bitcoin. Interested parties can find out more at https://bit.ly/46gFlgr
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Follow Carolyn Sissoko on Twitter https://twitter.com/csissoko
Follow Joseph Wang on Twitter https://twitter.com/FedGuy12
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Joseph’s latest, “Independent Tracks”: https://fedguy.com/independent-tracks/
Professor Sissoko’s publications: https://people.uwe.ac.uk/Person/CarolynSissoko
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Use code FG20 to get 20% off Blockworks’ Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-london
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Timestamps:
(00:00) Introduction
(00:51) Joseph's Take On The Fed's December FOMC Meeting
(09:25) Does Zero Interest Rate Policy Cause Malinvestment And Misallocation of Credit?
(15:02) The Rise of "Too Big To Fail"
(24:32) Line Separating Bank Lending And Money Markets Has Been "Almost Completely Obliterated"
(38:25) Central Bank Digital Currencies (CBDCs) and Stablecoins
(40:48) Joseph On Why Fed Quantitative Tightening (QT) Could Continue Even As It Cuts Rates
(45:20) Joseph's Views On Bonds
(01:02:03) The Collateral Effect
(01:17:04) CLOs and Private Equity
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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.
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