Zoltan Pozsar on What’s Going on in Rates Markets Right Now
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 9 September 2021
⏱️ 49 minutes
🧾️ Download transcript
Summary
There's a lot happening in the plumbing of the financial system. The Federal Reserve's reverse repo facility has seen huge takeup from financial market participants seeking to park excess cash. Meanwhile, the central bank has also announced the start of a new standing repo facility. And, of course, we're nearing the start of tapering, when the Fed will start to wind down its asset purchases. On this episode, we bring back Credit Suisse Strategist Zoltan Pozsar to talk about everything that's going on right now. He describes a system awash with dollars that no one wants, and walks us through what that means for broader markets.
See omnystudio.com/listener for privacy information.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Odlots is brought to you by Apollo. When it comes to building and financing stronger businesses, |
| 0:05.1 | Apollo does the heavy lifting by providing customized capital solutions. Apollo, investing in |
| 0:10.2 | tomorrow, today, learn more at Apollo.com. The world needs solutions. On October 24th at the |
| 0:16.5 | London edition of the Bloomberg Technology Summit, join leaders, innovators, and entrepreneurs |
| 0:21.0 | to discuss technologies that are poised to solve our most pressing global challenges. |
| 0:26.3 | From reducing CO2 emissions and making cities more livable to affordable healthcare and combating |
| 0:31.8 | food insecurity, executives from Deliveroo, Siemens, Graphcore and more will examine where tech |
| 0:37.3 | innovation can take us. Learn more at BloombergLive.com slash tech summit 2023. |
| 0:43.3 | Hello and welcome to another episode of the Odlots podcast. I'm Tracy Alloway. My co-host, |
| 1:00.6 | Joe Weisenfall, is away this week. I am recording this on September 1st, which means it is the |
| 1:08.8 | start of a new quarter. Whenever we have the start of a new quarter, it's usually a time to |
| 1:15.6 | start reflecting on what's happening in money markets. There has been a lot happening in money |
| 1:22.0 | markets so far this year. Just today, we have 82 participants placing $1.19 trillion at the fed's |
| 1:33.3 | reverse repurchase agreement facility, the reverse repo facility, and I have to say, |
| 1:40.8 | the US financial system right now is kind of a wash in liquidity and it has been for some time, |
| 1:47.9 | and that's causing problems for banks who have to handle all these deposits, problems for |
| 1:53.3 | money market funds, and of course, problems for the fed. So all this liquidity means that money |
| 1:59.0 | market rates have basically been pressured lower all year. So much so that the fed has actually |
| 2:06.1 | had to tweak some of its facilities, including the reverse repo facility back in June to prevent |
| 2:12.3 | those rates from going even lower, and more recently, it surprised the market by introducing a |
| 2:18.6 | standing repo facility. So we have had a lot of requests to talk about this on Odlots and no |
| 2:26.5 | surprise we've had requests to speak to one person. In particular, a repeat Odlots guest, |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Bloomberg, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Bloomberg and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.