Interview with Macro Alf on Banks, Money & Macro [Eurodollar University, Ep. 194]

An insider's view of regulations, bond markets, bank reserves, central banks, quantitative easing, fancy wines, when it's inappropriate to drink cappuccinos, government-guaranteed bank loans and more! Alfonso "Macro Alf" Peccatiello of The Macro Compass joins Jeff Snider (and Emil).------EP. 194 TOPICS------00:00:00 INTRO: Introducing Alfonso Peccatiello, @MacroAlf and The Macro Compass.00:04:08 Equities can qualify as high quality liquid assets - if you do it correctly.00:05:47 Regulations to make banks safe and restrict activity are cosmetic and worked around.00:08:13 Bank Reserves are inert, non-yielding burdens to the bank portfolio manager.00:13:17 Will bank reserves be inflationary because the reserves can be turned into cash?00:15:30 Will bank reserves force a portfolio reallocation into higher (inflationary?) risk?00:18:27 Do banks replace QE-sold sovereign bond assets with more sovereign bond assets?00:22:30 Are regulations holding back banks from credit/money creation in the real economy?00:24:11 Three factors, in alignment, are required for banks to lend / take-on risk.00:27:57 Bank reserves are immaterial in inflationary AND deflationary environments.00:32:56 Would government-guaranteed bank loans break the economy out of the depression?00:41:16 The world's equilibrium interest rate is heading lower with each cycle.00:43:17 Rehypothecation is a necessity as fewer AAA collateral assets are available.00:47:14 OUTRO: Follow Alfonso on Twitter (@MacroAlf) and Substack (The Macro Compass).----EP. 194 REFERENCES----Alfonso Peccatiello's Substack: https://TheMacroCompass.substack.com/Alfonso Peccatiello's Twitter: https://twitter.com/MacroAlfJeff's Twitter: https://twitter.com/JeffSnider_AIPEmil's Twitter: https://twitter.com/EmilKalinowski-----SEE ALL EPISODES-----Alhambra YouTube: https://bit.ly/2Xp3royEmil YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "When To Stop" by Lofive from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com-----------TAGS-----------#AlfonsoPeccatiello #MacroAlf #TheMacroCompass #SearchForYield