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The Importance of Yield Curve Control
The Bank Term Funding Program, BTFP, lets banks borrow against US Treasury securities instead of selling them on the open market. The rate is a year out plus 10 basis points, so it's not what Fed funds is. There's no prepayment penalty and there are no transaction fees. And then this is the best part: Nobody has to know that you borrowed from us for at least a year after the term of your borrowing.
James Lavish comes with decades of experience as a fixed income investor, and overall Bitcoin educator. On today’s show, Preston talks to James about how the evolving macro environment doesn’t seem to be hampering the price of Bitcoin, despite the numerous liquidity and central banking actions plugging the global economy.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:16 - What are the most important things to be focusing on in the second quarter of 2023?
02:56 - What James thinks about the disparity between the US and European credit markets right now.
18:04 - James' thoughts on the BTFP.
37:14 - How Bitcoin performs for the rest of this year.
37:38 - Could Bitcoin have a sell-off like we saw in March of 2020 with what might be brewing right now?
45:31 - Portfolio construction for Boomers.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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