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Webinar with Zoltán Pozsár about money view, Global Money Notes+Dispatch
YSI Money View Webinar with Zoltan Pozsar
Start time:
April 6, 2021 @ 2:00 pm - 3:40 pm
EDT
Location:
Online
Type:
Other
Speakers
Zoltan Pozsar
Managing Director Credit Suisse
Description
To follow up the "Financial stability in the age of Covid-19" entitled webinar from April 2020 we will call again Zoltán Pozsár from Credit Suisse to listen to his views.
Last year's webinar with Zoltan Pozsar.
Money is hierarchical and during crises, rules are flexible at the core and rigid at the periphery. In this crisis, the penalty rate part of Bagehot’s rule was replaced with “friendly” rates for the core – with Covid-19 there is no moral hazard in lending to the core of the system at low rates. (…) the net impact of this rule will be that primary dealers will be able to run “limitless Treasury inventories”, which, if need be, will be financed via repos by the Fed. In that sense, the Board of Governors of the Fed is “drafting” the dealer community to take part in the war effort – by financing the war on Covid-19. Paraphrasing Churchill: “we give you the balance sheet, and you’ll finish the job”.
The general assumption in the rates market is that if the SLR exemption of reserves and Treasuries does not get extended, cash yields would move higher and swap spreads tighter. The market assumes that the SLR exemption is what has “glued” the rates market together since 2020, and that the end of exemption means that large U.S. banks will have to sell Treasuries. That view is wrong: if the SLR exemption ends on March 31st, that won’t lead to forced sales, neither will it cause a constraint on the functioning of the Treasury repo market.
Hosted by Working Group(s):
Attendees
Yu Chen
Luis de la Torre
Raphael Porcherot
Antonio Grillo Neto
Jay Pocklington
Juan-Pedro Castro
Agustin Pedrazzoli
Michal Rozworski
Bruce Winson
Maria Caecilia Schweinberger
Sattwick Dey Biswas
Jheelum Sarkar
Thijs Kieboom
Daniel von Ahlen
Dávid Hornyák
Marco Almbauer
Daniel Kuehner
Alexandru Monahov
Larissa de Lima
Vikram Lopez
Stuart Bailey
Özge Özay
Frederick Myles
Celine Tcheng
Quentin Vandeweyer
Adrien d'Avernas
Francisco Perez
Mehmet Ali Güleç
Kovács Marcell
Fuzhen Wang
Christina Mosalagae
Yougui Wang
Yasmin Winther Almeida
Тимур Золкин
Ilja Viktorov
Dimo Stefanov
David Iskander
Charles Wan
Elsa Ryan Ramdhani
Alwin Adityo
Mathew Harris
Roudy Sassine
Clifton King
Bismarck Javier Arevilca Vasquez
Andy Lee
Nicole Toftum
Jay Vowell
Zack Eiseman
Benjamin Streim
mohsen moghiseh
Rishab Devnani
hongshao liu
Mark Komonczky
Christoph Becker
Vibhu Gangal
John Salchichon
Ying Qi
Marina Marques
Robert McKee
Randy Blair
Héctor Labat
Chris Rimmer
alison touhey
Martin Waibel
Shengbei Guo
David Storey
federico fornasari
jack gao
Mariano Cruz Navarro
Jason Blunier
Ádám Kerényi
Jérémy ZHANG
Mohamed Bakoush
Rudy Bouguelli
Mateusz Urban
Rohan Chinchwadkar
Richard Senner
Nicolás Aguila
Mario Laul
Jonah Wolf
Peter Holtzer
Anas Ben Chekroun
Nathalie Marins
Max Cramer
Miquel Bassart i Loré
Win Monroe
Frederik Vitting Hermann
Bruno Höfig
Rasheed Saleuddin
Aurora Li
Jonathan Marcus
Colin Vuilletet
David del Val
Farhad Panahov
Shubham Jain
Martin Vestergaard
Ramon Gimenez
Michael Peters
Tru Nguyen
Ajibola Akanji
Tatiana Camacho
J.Christopher Proctor
Andrew Medeiros
Alex Howlett
Julian Jurgenmeyer
Jennifer Judge
farhad gohardani
Christophe Diederen
Bianca Orsi
Puze Zhao
Ignacio Trucco
Marina Marques
Joel C.
Dennis Hamilton
Asgeir B. Torfason
Zach Kopelman
Dustin Fergusson-Vaux
Stefan Angrick