Keep pulling the thread on Matt Cherwin.
Alternative asset managers like Apollo, Blackstone, KKR, and BlackRock are becoming the new "Globally Systemically Important Banks" (GSIBs) by taking over the primary role of credit extension from traditional banks.
Matt Cherwin believes the U.S. administration needs interest rates to fall significantly more than the market has priced in to manage the country's debt burden.
Matt Cherwin predicts that if Kevin Warsh becomes Federal Reserve Chair, he will advocate for a more forward-looking monetary policy that is less reactive to day-to-day economic data.
A post on Truth Social directed representatives to purchase $200 billion of agency mortgage-backed securities, causing a massive short-covering rally in the market.
Matt Cherwin believes investors are underestimating the power of the "flywheel" effect, where lower rates and tighter credit spreads can recover and create significant value through financial engineering.
Matt Cherwin predicts that if Kevin Warsh becomes Federal Reserve Chair, he will argue that productivity gains from AI and deregulation will permit lower interest rates and a smaller Fed balance sheet simultaneously.
In late 2019, the overnight repo rate for borrowing against U.S. Treasuries spiked to 10%.
JPMorgan Chase was better positioned for the 2008 financial crisis because it had previously reduced its exposure to risky derivatives, allowing it to acquire distressed assets from competitors like Merrill Lynch and Wells Fargo.
Marek Capital's investment framework is based on five factors: money, capital, credit, liquidity, and regulation (MCCLR), which it believes drive economies, markets, and prices.
The financial system is disaggregating, with specialized trading firms like Citadel Securities and Jump Trading taking over market-making functions previously held within large integrated banks.
Marek Capital uses AI to build proprietary tools, stating that a project that would have taken a year at a large bank can now be completed in a week.
Marek Capital analyzes the AI CapEx boom as a commercial real estate product with securitization technology, viewing it as a source of cheap, mispriced risk.