Odd Lots

Here Are the Signs of a Slow-Moving Credit Crunch

Apr 24, 2023

Ben Emons, a senior portfolio manager at NewEdge Wealth and former PIMCO expert, dives into the current state of the banking system post-crisis. He outlines concerns over a potential credit crunch and its implications for the U.S. economy. The discussion covers the impact of rising interest rates on lending practices, the differences between private and traditional lending, and the evolving mortgage market. Emons also sheds light on the crucial role of the repo market during financial disruptions and how these elements shape investor behavior today.

45:51

Creator website

Episode guests

Ben Emons

Highlights

AI Chapters

Episode notes

Private Credit Lending vs Syndicated Loan Market

01:49

The Fed's Reverse Repo Facility and the Banking System

03:29

The Rise of Interest-Only Mortgages

03:02

The Problem With the Reverse Repo Facility

01:55

Intro

2min

Banking Disruptions and Credit Dynamics

8min

Dynamics of Credit Markets

8min

Credit Crunch and Mortgage Market Dynamics

6min

Navigating Treasury Markets Amidst Financial Uncertainty

3min

Navigating the Repo Market and Credit Dynamics

20min

Engagement and Financial Opportunities in Uncertain Markets

2min

The big headlines from March's banking crisis have receded and balances at some of the Federal Reserve's emergency lending facilities, like the discount window, are starting to fall. But if you look closely, there are still signs of strain in the depths of the financial system. And of course, there are still plenty of worries about whether deposit outflows from banks will lead to a broader credit crunch that could tip the US economy into recession. On this episode of the Odd Lots podcast, we speak to Ben Emons, senior portfolio manager at NewEdge Wealth and a longtime portfolio manager at Pimco, about what the banking drama means for everything from US mortgage rates to the vast "repo" market that's often described as the plumbing of the financial system.

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