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Collapsing Collateral, Derivatives, And Systemic Risks

Summary:
By Chris at www.CapitalistExploits.at Last week I published the first part of a conversation I had recorded with Daniel Want, the CIO at Prerequisite Capital Management. Today I have the second part of our conversation for you. In it Daniel and I dug into: The collapse in collateral in the system. How derivatives pose systemic risk as high quality collateral is diminishing in the global economy and derivative exposure relative to this collateral has risen, creating counterparts risks. Why and how trust is the basis for the development of high quality collateral and how this and all the other metrics Daniel measures are pointing down. Daniel's model for an investment portfolio that is both resilient AND efficient. How Daniel focuses on analyzing multi-year trends in asset classes. I invite you to listen to the second part here: (Click on the image to listen to the podcast) Enjoy! - Chris “Derivatives are like sex. It's not who we're sleeping with, it's who they're sleeping with that's the problem.” ? Warren Buffett -------------------------------------- Liked this podcast? Don't miss our future articles and podcasts, and get access to free subscriber-only content here.

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By Chris at www.CapitalistExploits.at

Last week I published the first part of a conversation I had recorded with Daniel Want, the CIO at Prerequisite Capital Management. Today I have the second part of our conversation for you. In it Daniel and I dug into:

  • The collapse in collateral in the system.
  • How derivatives pose systemic risk as high quality collateral is diminishing in the global economy and derivative exposure relative to this collateral has risen, creating counterparts risks.
  • Why and how trust is the basis for the development of high quality collateral and how this and all the other metrics Daniel measures are pointing down.
  • Daniel's model for an investment portfolio that is both resilient AND efficient.
  • How Daniel focuses on analyzing multi-year trends in asset classes.

I invite you to listen to the second part here:

Collapsing Collateral, Derivatives, And Systemic Risks

(Click on the image to listen to the podcast)

Enjoy!

- Chris

“Derivatives are like sex. It's not who we're sleeping with, it's who they're sleeping with that's the problem.” ? Warren Buffett

--------------------------------------

Liked this podcast? Don't miss our future articles and podcasts, and

get access to free subscriber-only content here.

--------------------------------------

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