bond trading

Funny Money is a show about the economy; how it works, and how it can work better. 

In our SEASON 1 FINALE, Ka and Andrés are joined by Warren Mosler, one of the leading voices in the field of Modern Monetary Theory (MMT). As an economist, theorist, entrepreneur and legendary bond trader, Warren Mosler has spent the past 40 years gaining an insider’s knowledge of monetary operations. In addition to his work in the field of economics, he developed – and later sold – his own automobile line, Mosler Automotive, responsible for producing the Mosler MT900 and the Consulier GTP. Mosler is the author of “The Seven Deadly Innocent Frauds of Economic Policy” and "Soft Currency Economics."

#Podcast #Comedy #Economics #News #Politics

Is the Fed raising rates in 2022?  What will happen to equities? What is an NFT and why should I care? How can I hedge my portfolio against inflation?
 
Answers to each of these questions and many more are covered in this month's interview. In the kickoff to season #2 of Fill the Gap, we are joined by one of the best macro strategists on the street – and a man who came close to being a Fed Governor himself!
 
James Bianco, CMT is President of Bianco Research, L.L.C., an Arbor Research & Trading, LLC affiliate based in Chicago. Since November 1990, he has been a highly sought-after Fixed Income Strategist and macro market analyst. A longstanding member of the CMT Association and a familiar face in financial news media, Jim’s commentaries are primarily devoted to fixed income markets, and he places special emphasis on the money flow characteristics of primary dealers, mutual funds, hedge funds, futures traders, banks, and institutional investors. 
 
Other topics he has researched include the effects of commodity prices on bond yields, how the ratio of the equity market’s capitalization as a percentage of the nominal gross domestic product affects price performance of the stock market, the role government regulation plays in determining inflation, how market performance affects mutual fund investors, the role politics plays in setting interest rates and measuring the stock and bond markets from a total return perspective.
 
In this episode, we cover all of Jim’s specialties and take a look at the emerging asset class with a clear-eyed description of decentralized finance, the protocols underlying altcoins in the cryptocurrency market, and the proliferation of NFTs.

Fill the Gap, hosted by David Lundgren, CMT, CFA and Tyler Wood, CMT brings veteran market analysts and money managers onto a monthly podcast.

For complete show notes of every episode, visit: https://cmtassociation.org/development/podcasts/

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@dlundgren3333 or
https://www.linkedin.com/in/david-lundgren-cmt-cfa-63b73b/
@_TBone_Pickens or
https://www.linkedin.com/in/tyler-wood-cmt-b8b0902/
@CMTAssociation or
https://www.linkedin.com/company/cmtassociation

CMT Association is the global credentialing authority committed to advancing the discipline of technical analysis in the financial services industry. We serve members in over 137 countries. Our mission is to elevate investors mastery and skill in mitigating market risk and maximizing return in capital markets through a rigorous credentialing process, professional ethics, and continuous education. CMT Association formed in the late 1960s with headquarters in lower Manhattan, NY and Mumbai, India.

Learn more at: www.cmtassociation.org

00:54 - We're going to dissect a NYT article: "Buy stocks to prosper - buy bonds to sleep at night."

04:16 - Instead of taking a loan from a bank, when you buy a bond, YOU are the lender to the government, or a corporation, or locality. A bond is a guarantee to get your money back plus an agreed-upon interest rate (usually a low interest rate).

10:11 - The article begins by congratulating stock holders, and cites stocks that are primarily up because of government policies on energy and printing more money. These stocks rising are actually symptoms of a huge problem with our economy, and the good times cannot go on forever.

14:24 - The problem is that bonds have been artificially low for a very long time (<2% yield). When those bonds come due, they could be owed at higher interest rates. The amount of capital we're talking about here is massive. Entire institutions could collapse when the bills come due. Your money is only guaranteed as long as the bond issuer doesn't go bankrupt.

18:39 - Where should we put our money when the Federal Government is so reckless with spending?

23:20 - Find large-cap, established companies with low debt, and invest in those. Because they can adjust their prices to account for inflation, and they also won't get wiped out when interest rates come back up.

27:31 - Germans in 1924 used to need wheelbarrows full of money to buy groceries, because inflation was so out of control. It collapsed their economy and largely led to the Third Reich and WW2.

30:52 - Summary - Thanks for listening!

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