The Fed Is Burning Money | Harley Bassman
b"Today Jack is joined by none other than the Convexity Maven himself, Harley Bassman, who shares why he is \\u201cwildly\\u201d bullish on mortgage-backed securities (MBS) even as the Federal Reserve is in the process of reducing its balance sheet via quantitative tightening (QT).\\xa0\\n\\nBassman explains why long-term interest rates have shot up by so much and makes the case that, while he is confident that inflation will continue to run hot, the sell-off in long-duration Treasurys may not continue. Bassman goes on to explain the significance of the spike in interest rate volatility as measured by the MOVE Index, his creation, and shares several investment theses on municipal bonds and equity LEAPs. Filmed on Friday, June 3, 2022.\\n--\\nFollow Harley Bassman on Twitter: https://twitter.com/ConvexityMaven\\nFollow Jack Farley on Twitter:\\xa0https://twitter.com/JackFarley96\\nFollow Blockworks on Twitter\\xa0https://twitter.com/Blockworks_\\nSubscribe To The Blockworks Newsletter:\\xa0https://blockworks.co/newsletter\\n--\\nBit.com is a full-suite cryptocurrency exchange launched by Matrixport, an integrated financial services firm headquartered in Singapore. Since August 2020, Bit.com has been online supporting the spot, perpetual, futures, fixed income and options products, with a particular highlight being pioneers to launch BCH options. Bit.com is the second-largest in the BTC and ETH options market.\\n\\nCall to action: For any further enquiry, please contact vip@bit.com.\\nSign up URL: https://bit.ly/3KlgLR3\\nApp download URL: https://bit.ly/3xer6uI\\n--\\nReferenced In The Show:\\n\\n\\u201cThe Water Is Warm In The MBS Pool\\u201d: https://www.convexitymaven.com/wp-content/uploads/2022/05/Convexity-Maven-MBS-Pool.pdf\\n\\n\\u201cFire Insurance - Revisited\\u201d:\\nhttps://www.convexitymaven.com/wp-content/uploads/2022/01/Convexity-Maven-Fire-Insurance-Revisited.pdf\\n--\\nTimestamps:\\n\\n(00:00) Introduction\\n(01:18) Historic Bond Sell-Off\\xa0\\n(09:48) Credit Vol\\n(17:14) Is There A Powell Put On Credit?\\n(21:56) Is Quantitative Tightening (QT) Money Burning?\\n(25:05) Bit.com Ad\\n(33:49) Yield Curve Inversion\\n(41:26) Outlook on Mortgage-Backed Securities (MBS)\\n(44:59) Pre-Payment and Extension Risk\\n(51:42) Will MBS Convexity Humble the Fed?\\n(1:00:08) Bassman's Highest Conviction View\\n(1:03:38) Municipal Bonds\\n(1:04:42) Longer-Dated Calls on Equity Indices\\n\\xa0--\\nDisclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets."