1:40 - Theory: Portfolio construction post retirement 2:22 - Fantastic journalism! 2:45 - Thought experiment: ruling out a lower bound on the 10 year given a specific lower rate environment 4:15 - Describing private market liquidity innovations 6:01 - Describing recent defaults (5 second soundbite) 6:44 - Specifying an observable relationship where, if I understand correctly, the speaker believes a "Liz Truss Moment" could occur 7:01 - I feel like I should know what this average maturity number is 7:29 - Discussion of US Treasury funding 7:52 - Alternative definition of "Liz Truss Moment" How I am summarizing this interview for myself is that the guest is in the "higher for longer" camp and thinks that even with IOER rate reduction to 3.5%, a possible 10 year rate could be 5% (which is higher than the rate today 6/20/24). Technical factors discussed included US Treasury average maturity, which was described as similar now as to the previous administration. Risks discussed included a "Liz Truss Moment".
1:40 - Theory: Portfolio construction post retirement
2:22 - Fantastic journalism!
2:45 - Thought experiment: ruling out a lower bound on the 10 year given a specific lower rate environment
4:15 - Describing private market liquidity innovations
6:01 - Describing recent defaults (5 second soundbite)
6:44 - Specifying an observable relationship where, if I understand correctly, the speaker believes a "Liz Truss Moment" could occur
7:01 - I feel like I should know what this average maturity number is
7:29 - Discussion of US Treasury funding
7:52 - Alternative definition of "Liz Truss Moment"
How I am summarizing this interview for myself is that the guest is in the "higher for longer" camp and thinks that even with IOER rate reduction to 3.5%, a possible 10 year rate could be 5% (which is higher than the rate today 6/20/24). Technical factors discussed included US Treasury average maturity, which was described as similar now as to the previous administration. Risks discussed included a "Liz Truss Moment".