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Real Vision: Finance & Investing

Archegos's Leveraged Blow-Up: Danger Under the Hood?

Real Vision: Finance & Investing

Real Vision

Business News, News, Investing, Business

4.11.1K Ratings

🗓️ 31 March 2021

⏱️ 38 minutes

🧾️ Download transcript

Summary

DB-Mar30,2021: What does the leveraged blow-up of Archegos Capital Management mean for risk assets? Tony Greer of TG Macro joins Real Vision senior editor Ash Bennington to answer this question and update his outlook on stocks, bonds, housing, the U.S. Dollar, and gold as the bond rout shows little sign of stopping. Tony notes that the forced liquidation of Archegos ceased to impair stocks today—for now, at least—but remains as a potential sign that there is some market danger underneath the hood. Tony cites this as a reason why, on the margin, he is moving somewhat into cash and gold and out of stocks. Tony makes sense of the action in Treasury yields and tells Ash why he thinks the U.S. Dollar has been driving higher, especially against the yen. Tony speculates as to why commodities have proved resilient in the face of this dollar strength, which is normally a headwind. Lastly, Ash tells Tony about his evolving journey in the crypto world from a fan’s creation of Ash’s very own non-fungible token (NFT) to Ash’s experience buying Ethereum for the first time. For our Listeners : Protect your portfolio and join 130,000 members by signing up at masterworks.io with promo code REAL VISION today to skip the waitlist. See important information at masterworks.io/disclaimer Checkout Jordan Harbinger Show @ https://www.jordanharbinger.com/ Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

The Archie goes liquidation, new stimulus affecting treasuries, and then Ethereum and NFT.

0:18.8

It's TG Tuesday, welcome Tony Greer, Ash Bennington, how are you today, man?

0:24.0

I'm doing great, so this is really an interesting one because I've basically been down the crypto

0:28.5

rabbit hole since last week with crypto gathering and institutional credit investor crypto

0:35.3

gathering day yesterday. So this is my first day back for a while. I know I've missed a ton.

0:40.6

What's going on? Oh, man, are you kidding me? I love it. I love that I get to update you first

0:46.4

for change, Ash, you know what I mean? I mean, this is like walking into the, you know, 40 minutes

0:51.2

into pulp fiction and saying, what's going on here? Literally, literally, it's, you know,

0:57.3

there's a lot to catch up on, but to start, you know, the Archie goes the capital blow up,

1:02.4

you know, Bill Wang, the one of the Tiger Cubs in Asia has been a manager down there for years.

1:09.6

Obviously, it's a large margin call that seemed to have been activated by four broker dealers,

1:15.6

sort of mysteriously prime brokering the risk together, which is one of the things that I've

1:22.7

sort of never heard about in this, you know, in a scenario like this before where you've got

1:27.7

Goldman Sachs, Morgan Stanley, Nomura, and credit Swiss, all with the same overtly, obviously,

1:38.4

you know, coming apart risk on their books, they're going to have margin calls on their clients,

1:43.6

and they are all colluding apparently on the information, which is nothing that I've ever heard

1:48.5

before. And then Goldman Sachs goes ahead and puts the flow out on an email in the morning and says

1:52.7

the whole avalanche in motion. Next thing you know, we've got somewhere between, you know,

1:57.9

a hundred and a hundred and twenty billion dollars of capital and scinerated from, you know,

2:03.6

leverage blow up of Bill Wang. So, you know, we saw the moves that it caused Ash, if you look at

2:11.6

some of the stocks, I'll give you the ticker, but like names like disgay, and tensin, entertainment,

2:17.9

and buy-do, the IDU, and VIP shop holding, some of these stocks have got divots in them like you've

...

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