Darrell Duffie

Darrell Duffie, a finance and economics professor at Stanford, dives into liquidity strains at quarter-end, exploring the complexities of SOFR/IOR spreads. He discusses how bank payment timing is a better stress predictor than spread itself. Duffie also critiques current debt-to-GDP levels and suggests the Treasury's 'stealth QE' tactics. He explains the evolving treasury strategy for short-term needs and its effects on market dynamics, alongside the implications of transitioning from LIBOR to SOFR for banks and corporate borrowing.

Darrell Duffie, a finance professor at Stanford's Graduate School of Business, dives into the complexities of the U.S. Treasury market. He discusses the recent volatility and liquidity challenges, highlighting its critical role in the global financial system. Duffie critiques the Federal Reserve's interventions and advocates for essential reforms, like central clearing, to enhance market efficiency. He also addresses the urgent need for better market structures amid rising government borrowing and economic pressures, emphasizing a reevaluation of traditional models.

Stanford finance professor Darrell Duffie discusses central bank digital currencies, highlighting benefits like improved financial inclusion and lower payment costs. He emphasizes the need for balanced regulation to foster innovation while mitigating risks. The conversation also touches on challenges like privacy concerns and the impact on the US dollar's global dominance.

Renowned finance professor Darrell Duffie discusses his vast research contributions and recent focus on the US Treasury market. They explore the bond market meltdown in 2020, yield volatility, liquidity breakdown, and policy implications. They also delve into topics like cross currency basis swaps, transitioning from LIBOR to risk-free overnight rate, and the importance of the base asset in pricing.

Darrell Duffie, a Stanford professor and monetary policy expert, joins the conversation to dissect current Federal Reserve practices. He emphasizes the crucial link between reserves and the payment system, explaining why large reserves are now necessary. The talk dives into the Fed's shift to Treasury bills, the stigma surrounding its lending facilities, and how these factors can impact market liquidity. Duffie also previews his research on reserve levels affecting payment timings and potential solutions to reduce stigma in Federal funding.