Shadow QE to Save the Bond Market? with Michael Howell

Oct 23, 2023

Michael Howell, Founder & MD of CrossBorder Capital, discusses the current state of liquidity markets, possibility of FED implementing yield control, diminishing returns of liquidity, and the disconnect between inflation and bond prices.

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Introduction

00:00 • 2min

The Current State of Markets and Liquidity

02:08 • 10min

Analysis of Falling Bond Prices and Potential Implications for Investors

11:57 • 2min

Addressing Risks in the Bond Market

13:56 • 10min

Global Liquidity Cycles and Projections for the Bond Market

23:56 • 11min

The Relationship Between Liquidity Cycles and Asset Markets

34:39 • 9min

Interview recorded - 20th of October, 2023

On this episode of the WTFinance podcast I had the pleasure of speaking with Michael Howell - Founder & Managing Director of CrossBorder Capital.

During our conversation we spoke about what is currently happening in liquidity markets, whether the FED could go towards yield control, whether all liquidity is created equal, disconnect between inflation and bond prices and more. I hope you enjoy!

0:00 - Introduction
1:40 - What is currently happening in liquidity markets?
4:08 - Will Powell let the bond markets take control?
6:15 - Could the FED go towards yield control?
8:35 - Will they have to bring in financial repression?
13:18 - Potential for another bank financial crisis?
15:45 - Bigger liquidity required for the financial system
31:45 - Is all liquidity created equal or will we see diminishing returns?
33:53 - What does increasing liquidity mean for markets?
39:55 - Disconnect between inflation and bond prices?
40:23 - One message to takeaway from our conversation?

Michael Howell is CEO of CrossBorder Capital, a London-based FCA registered, independent research and investment company that he founded in 1996. Previously he was Head of Research for Baring Securities and Research Director of Salomon Brothers Inc, the US investment bank. The liquidity methodology he pioneered monitors cross-border flows and Central Bank behaviour across some 80 countries world-wide. Liquidity flows are a central part of CrossBorder Capital's asset allocation advice, which is currently provided to major global investors, including institutional asset managers, government agencies, Central Banks and endowment funds. Michael has been in financial markets since 1981 and is a regular conference speaker and media commentator. He graduated from Bristol and London Universities with a finance doctorate, specialising in Fixed Income.

Michael Howell -

Website - https://crossbordercapital.com/
Twitter - https://twitter.com/crossbordercap
LinkedIn - https://www.linkedin.com/in/michael-howell-357b1416/?originalSubdomain=uk

WTFinance -

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iTunes - https://podcasts.apple.com/us/podcast/wtfinance/id1554934665?uo=4
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