Eurodollar University Holy Sh*t...Did You See What Just Happened In The Market!?
7 snips
Nov 16, 2025 Steve Van Metre, a macro markets and credit cycle expert, joins the conversation as he analyzes the recent turmoil in the financial markets. He discusses repo strains and how rising rates signal deeper liquidity issues. Bitcoin's decline and WTI's brief contango offer insights into market health and risk-taking. Steve emphasizes that the Fed's actions are more about sentiment than direct economic impact. With rising delinquencies and investor redemptions, he warns of an inevitable credit cycle downturn that could shake up the landscape.
AI Snips
Chapters
Transcript
Episode notes
SOFR Dispersion Reveals Systemic Tightness
- SOFR dispersion shows market-wide tightening, not just a Fed reserves shortage.
- Repo illiquidity has pushed multi-trillion dollar rates higher despite ample reserves.
Fed Moves Are About Sentiment, Not Fixing Plumbing
- Wall Street pushes for Fed action to restore sentiment, not to fix plumbing.
- Fed interventions mainly aim to stop selling by signaling 'we're doing something.'
Don't Mistake Fed Action For Structural Repair
- Do not rely on rate cuts or QE to resolve underlying credit/collateral problems.
- Treat Fed actions as potential short-term sentiment boosts, not structural fixes.