How The Crisis Nearly Blew Up One Of The World’s Safest Trades
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 26 March 2020
⏱️ 56 minutes
🧾️ Download transcript
Summary
In normal times, U.S. Treasuries are the ultimate safe haven. They are highly liquid and guaranteed to pay out. So when people want to hide out during periods of economic and financial market volatility, you can typically count on there being a strong bid for them. But in the last couple of weeks, the volatility has been so extreme, and the flight-to-cash so severe, that the market stopped behaving as normal. And popular trades involving arbing Treasuries and Treasury bond futures started to fail. On today’s episode, we speak with Josh Younger, a managing director at JPMorgan, who explains how and why it started to fall apart.
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| 0:45.0 | I'm Tracy Alawabe. |
| 0:47.0 | So Joe, I know there's a lot to talk about |
| 0:51.0 | when it comes to the recent market turmoil but I have to say there is one |
| 0:56.0 | thing that stands out to me and that is what we've seen in the US Treasury. |
| 1:00.8 | Can I just back up for one second? |
| 1:02.9 | I just had a thought. |
| 1:04.2 | You know it would be funny when the, well, |
| 1:06.7 | I don't know funny, |
| 1:08.4 | it's exactly the right word here. |
| 1:10.5 | Okay. |
| 1:10.8 | But it would be very interesting to compile a complete compendium of all of our |
| 1:17.5 | podcast intros over the last couple months and through this as things get crazier and crazier because I feel like in the beginning |
| 1:26.7 | it was like let's talk a little bit about disruptions to the Chinese supply chain and then we're at the point of, |
| 1:34.2 | let's talk about how suddenly the safest asset |
| 1:37.1 | in the world isn't trading, like how it's supposed to be. |
| 1:39.5 | And I feel like we could track the course |
... |
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