Matt Levine, a sharp Bloomberg Opinion columnist, teams up with Mike Mackenzie, a seasoned journalist focused on the bond market. They dive into the pressing basis trade and its historical significance, touching on the recent bond market selloff. The duo shares nostalgic tales from 1990s Tokyo, sprinkling in whimsical debates about self-driving cars. They also dissect the current treasury market dynamics and the systemic risks posed by hedge funds and high-frequency traders, all while keeping the conversation light-hearted and engaging.
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Using trusted data is crucial for accurate and reliable AI results, tailored to each business's unique needs.
Deep dives
Earning High Yields with Treasury Bills
You can earn a 5.5% annualized yield with 6-month T-Bills if held to maturity. Public.com offers a convenient and quick way to purchase T-Bills, bypassing the traditional methods like going to a bank or navigating outdated government websites. The platform provides an opportunity to earn some of the highest yields seen in years.
AI, Untrusted Data, and Trusting the Results
The podcast discusses the importance of using trusted data when employing AI. While AI has the potential to automate processes, if it relies on untrusted data, the accuracy and reliability of the results may be compromised. The focus should be on utilizing the right AI that is tailored specifically for each business's unique needs.
The Basis Trade and Treasury Market Volatility
The basis trade in the treasury market is explored in this podcast episode. Despite recent media attention and concerns, some experts argue that the basis trade might not be as risky as perceived. The changing dynamics of treasury markets, including the role of hedge funds and algorithmic traders, are discussed, along with potential implications for market stability and regulation.
For those who can't get enough Odd Lots, we're now offering you... "Lots More." This new podcast show, appearing on Fridays, will see hosts Tracy Alloway and Joe Weisenthal chatting with some of your favorite Odd Lots guests about the latest breaking news and the biggest themes on their minds in markets, finance and economics. Joe’s away for this episode. So Tracy gathers two of her favorite Bloomberg colleagues — Matt Levine and Mike Mackenzie — to talk about the basis trade that’s got regulators worried, plus the recent bond market selloff, reminiscences over Tokyo in the 1990s and much more.