Real Vision: Finance & Investing "The Printer Is Coming" | Macro Mondays: November 10th, 2025
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Nov 10, 2025 Andreas and Mikkel dive into the impact of Fed liquidity and SOFR stress on risk assets. They explain SOFR's significance and its connection to market stress, particularly for hedge funds. The potential for a U.S. government reopening to ease liquidity strains is discussed, along with the Fed's likelihood of expanding its balance sheet. They analyze how recent SOFR moves have affected high-beta assets like Bitcoin, and explore the implications of political risks and inflation data on future market trends.
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Hosts Joke About Lighting And Office Distance
- Andreas jokes he's not sitting in a cellar but is just across the desktop from Mikkel.
- The hosts use light banter about lighting and perceived distance between their offices.
SOFR Spikes Signal Structural Dollar Scarcity
- SOFR stress shows the dollar money market lacks sufficient cash for secured overnight lending.
- Andreas believes the Fed will expand its balance sheet to fix this structural scarcity.
SOFR Moves Drive Levered Risk Taking
- SOFR is a secured overnight repo rate used by levered funds to obtain cash against treasuries as collateral.
- When SOFR spikes, levered funds must cut leverage which ripples through high-beta assets like crypto and option-heavy stocks.