Marc Cohodes of Alder Lane Farm pulls no punches as he diagnoses the true culprits behind the exponential volatility in stocks such as GameStop: extreme leverage and the hedge funds who use it in order to juice returns. Cohodes argues that hedge funds like Point72 and Melvin Capital are creating significant systemic risk for all market participants.
Dan Zwirn, CEO and CIO of Arena Investors, returns to Real Vision to provide a strategic update on the world of credit. In this interview with Real Vision’s managing editor, Ed Harrison, Zwirn explains how, in a world of suppressed interested rates by monetary authorities such as the Federal Reserve, companies that are effectively underwater nevertheless manage to secure financing at attractive rates. Harrison and Zwirn discuss this phenomenon of “liquidity without solvency” in depth, comparing the ongoing fervor in AMC Entertainment Holdings to Hertz last summer.