Published on: September 5th, 2016 • Duration: 24 minutes
The dramatic decline in high quality collateral for derivatives exposure is the elephant in the room, which has some stark implications for the global economy.
Daniel Want, CIO of Prerequisite Capital Management, highlights how pledged collateral has effectively halved resulting in a dangerous shortage of international liquidity.
Productivity and velocity trends will become the key indicators to watch with sustainable reflationary growth unlikely.
