Keep pulling the thread on Matt Cherwin.
Matt Cherwin asserts that the modern financial system is undergoing a de facto recreation of the Glass-Steagall Act, separating traditional banks from new centers of credit and trading.
Matt Cherwin identifies firms like Apollo, Blackstone, KKR, and Blackrock as the "new G-SIBs" (Globally Systematically Important Banks) who are now the primary decision-makers in credit extension for the economy.
Merrick Capital has a strong investment conviction in trophy-quality office real estate in gateway cities due to a supply-demand imbalance driven by the growth of large alternative asset managers like Apollo, KKR, and Blackstone.
During the repo crisis of late 2019, the overnight borrowing rate against U.S. Treasuries spiked to 10%.
Prior to the 2008 financial crisis, JPMorgan Chase CEO Jamie Dimon reportedly ordered the bank to remove risky derivatives from its balance sheet.
Firms such as Citadel Securities, Jump Trading, and Jane Street are disaggregating the financial system by taking on specialized trading roles previously held by large integrated banks.
Matt Cherwin asserts that the U.S. government needs interest rates to fall significantly more than what the market currently prices in, due to the high level of national debt.
Matt Cherwin argues that the concepts of the risk-free rate and credit spread are now completely intertwined and can no longer be analyzed as separate components.
At Merrick Capital, employees are using AI to build internal tools in a week that would have previously taken a year to develop at a larger institution.
Merrick Capital views the AI capital expenditure boom as a source of cheaply priced risk, particularly in securitized products related to commercial real estate for data centers.
Matt Cherwin argues that a $200 billion purchase of agency mortgage-backed securities is insufficient to significantly move rates in a market with an outstanding value of approximately $12 trillion.
The Federal Reserve holds $2.2 trillion in mortgage-backed securities, with an estimated annual runoff of approximately $180 billion.