Live with Michael Lebowitz How The Fed’s Overdrive Affects Bonds

Published on
November 14th, 2019
Duration
42 minutes

Live with Michael Lebowitz How The Fed’s Overdrive Affects Bonds

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Published on: November 14th, 2019 • Duration: 42 minutes

Michael Lebowitz, CFA, is the founder of 720 Global, a strategic investment consultant firm that provides a combined 50 years of experience to both institutional and retail clients in the fields of capital markets, asset allocation, valuations, risk management and macroeconomic research. Most recently, Lebowitz appeared on Real Vision’s “Trade Ideas” where he spoke at length about “generational opportunities” stemming from the steepening yield curve.

Comments

Transcript

  • SS
    Shanthi S.
    1 December 2019 @ 09:18
    I thought this was a great interview, although I’m still ps’d that my Think Tank sub evaporated despite me having paid for the service.
    • SZ
      Scott Z.
      3 December 2019 @ 16:28
      I completely agree.
  • AP
    Antonio P.
    26 November 2019 @ 15:11
    And the quality of the sound is pretty poor ...
  • JL
    J L.
    24 November 2019 @ 05:41
    powell will resign before going NIRP, i think we have seen many times what he truly believes
  • AH
    Adam H.
    23 November 2019 @ 15:10
    Is there a download of a written research piece from Michael, like there was from Danielle last week? Personally I'd need two of these interviews, plus a research piece from each, per week to see enough value to renew this service now. I would have happily renewed the old Think Tank.
  • CA
    Craig A.
    22 November 2019 @ 22:20
    Good interview. Couldn't join live, but was pleased Ed asked questions i had. FWIW, i agree with the Asian viewer last week that suggested a live show two or three hours earlier.
    • M.
      Milton .. | Founder
      23 November 2019 @ 09:36
      We are taking this into consideration when we schedule future talks. The first set of 3-4 talks were already arranged mid morning/noon NY time.
  • KE
    Kathryn E.
    22 November 2019 @ 02:55
    Great Interview. Thank you!
  • EQ
    Eduardo Q.
    21 November 2019 @ 19:33
    Thanks for the answer to my question related to Financial stocks and the steepening of the YC. However, there´s something I still don´t get. Comparing the YC vs the historical behavior of some US Financial Stock prices and the VFH ETF, It looks like in previous occasions when the YC steepened (89, 00, and 07), "especially in 2007", even though the steepening of the YC is beneficial to financial stocks´ profits, their share prices felt like stones... to rise thereafter when the YC flattened. In 89, 00, 07 before the Steepening, interest rates were around 9%, 6%, and 5% respectively, however, the spread is what matters for banks profitability, right?... (considering only US financials and excluding Europe's and Japan´s for obvious reasons), therefore, why financial stocks get hammered when their profits should be at their highest?... Is that because the steepening of the YC = imminent recession and the whole market gets hammered, so, financials might, on a relative basis, underperform to a lesser extent vs other more cyclical and more YC-steepening sensitive sectors?... therefore a YC steepening pair trade might be Financials/XYZ Sector?... Cheers
    • ml
      michael l. | Contributor
      21 November 2019 @ 20:29
      As you imply there is not cut and dry answer. The steeper yield curve will help on the margin but a recession increases credit costs while decreasing loan demand. Further, a financial shock like 2008 creates pressures that dwarf the benefits of the yield curve. Thank you for your question today.
    • EQ
      Eduardo Q.
      21 November 2019 @ 21:16
      Yes, Michael, a stock price is not influenced by only one variable but many other factors. It´s multi-dimensional. All this, sort of, highlights the use of the YC as a relevant indicator for market crashes and subsequent recovery though. Thanks again...