Interview with Macro Alf on Banks, Money & Macro [Eurodollar University, Ep. 194]

An insider's view of regulations, bond markets, bank reserves, central banks, quantitative easing, fancy wines, when it's inappropriate to drink cappuccinos, government-guaranteed bank loans and more! Alfonso "Macro Alf" Peccatiello of The Macro Compass joins Jeff Snider (and Emil). -----EP. 194 TOPICS----- 00:00:00 INTRO: Introducing Alfonso Peccatiello, @MacroAlf and The Macro Compass. 00:04:08 Equities can qualify as high quality liquid assets - if you do it correctly. 00:05:47 Regulations to make banks safe and restrict activity are cosmetic and worked around. 00:08:13 Bank Reserves are inert, non-yielding burdens to the bank portfolio manager. 00:13:17 Will bank reserves be inflationary because the reserves can be turned into cash? 00:15:30 Will bank reserves force a portfolio reallocation into higher (inflationary?) risk? 00:18:27 Do banks replace QE-sold sovereign bond assets with more sovereign bond assets? 00:22:30 Are regulations holding back banks from credit/money creation in the real economy? 00:24:11 Three factors, in alignment, are required for banks to lend / take-on risk. 00:27:57 Bank reserves are immaterial in inflationary AND deflationary environments. 00:32:56 Would government-guaranteed bank loans break the economy out of the depression? 00:41:16 The world's equilibrium interest rate is heading lower with each cycle. 00:43:17 Rehypothecation is a necessity as fewer AAA collateral assets are available. 00:47:14 OUTRO: Follow Alfonso on Twitter (@MacroAlf) and Substack (The Macro Compass). ---EP. 194 REFERENCES--- Alfonso Peccatiello's Substack: https://TheMacroCompass.substack.com/ Alfonso Peccatiello's Twitter:   / macroalf   Jeff's Twitter:   / jeffsnider_aip   Emil's Twitter:   / emilkalinowski   ----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 "When To Stop" by Lofive from Epidemic Sound. -----FIND THE TEAM------ Jeff:   / jeffsnider_aip   Jeff: https://alhambrapartners.com/author/j... Emil:   / emilkalinowski   Emil: https://www.EuroDollarEnterprises.com David: https://DavidParkins.com/ Terence: https://www.VisualFocusMedia.com ----------TAGS---------- #AlfonsoPeccatiello #MacroAlf #TheMacroCompass #SearchForYield