Reserve Currency is Constrained, say Swap Spreads [Eurodollar University, Ep. 195]

A look at interest rate swap spreads relative to nominal US Treasury yields identifies constrained bank balance sheet capacity. Monetary measures like swap spreads, Eurodollar futures, yield curve flattening are all indicating that the balance of risks is tilting away from recovery and reflation.

------EP. 195 TOPICS------
00:00 INTRO: Interest rate swap spreads are a peek at bank balance sheet capacity.
01:43 Bank balance sheet capacity represents ledger money; the reserve currency, eurodollar.
03:04 If bank balance sheet capacity is not available, swap spreads will show it.
08:53 Comparing the 5-, 10- and 30-year swap spreads.
11:55 OUTRO: Swap spreads and Eurodollar Futures both turned away from Reflation at same time.

----EP. 195 REFERENCES----
The Money *All* Agrees: Taper Rejection Meets Policy-Error Error: https://bit.ly/3tg6wpZ
The Real Money Doesn’t *Spread* Inflation: https://bit.ly/3stKscv
Alhambra Investments Blog: https://bit.ly/2VIC2wWlin
RealClear Markets Essays: https://bit.ly/38tL5a7

-----SEE ALL EPISODES-----
Alhambra YouTube: https://bit.ly/2Xp3roy
Emil YouTube: https://bit.ly/310yisL

----HEAR ALL EPISODES-----
Vurbl: https://bit.ly/3rq4dPn
Apple: https://apple.co/3czMcWN
Deezer: https://bit.ly/3ndoVPE
iHeart: https://ihr.fm/31jq7cI
TuneIn: http://tun.in/pjT2Z
Castro: https://bit.ly/30DMYza
Google: https://bit.ly/3e2Z48M
Reason: https://bit.ly/3lt5NiH
Spotify: https://spoti.fi/3arP8mY
Pandora: https://pdora.co/2GQL3Qg
Castbox: https://bit.ly/3fJR5xQ
Podbean: https://bit.ly/2QpaDgh
Stitcher: https://bit.ly/2C1M1GB
PlayerFM: https://bit.ly/3piLtjV
Podchaser: https://bit.ly/3oFCrwN
PocketCast: https://pca.st/encarkdt
SoundCloud: https://bit.ly/3l0yFfK
ListenNotes: https://bit.ly/38xY7pb
AmazonMusic: https://amzn.to/2UpEk2P
PodcastAddict: https://bit.ly/2V39Xjr

---------THE TEAM---------
Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "Hong Kong Story" by Lazer Boomerang.

------FIND THE TEAM-------
Jeff: https://twitter.com/JeffSnider_AIP
Jeff: https://alhambrapartners.com/author/jsnider/

Emil: https://twitter.com/EmilKalinowski
Emil: https://www.EuroDollarEnterprises.com

David: https://DavidParkins.com/
Terence: https://www.VisualFocusMedia.com

Lazer Boomerang: https://www.facebook.com/lazerboomerang/
Lazer Boomerang: https://soundcloud.com/user-14207639