ep. 207


PIMCO’s Cash King On Liquidity, Repo, Debt Ceiling, And Yield Curve Inversion | Jerome Schneider

Jerome Schneider, managing director at PIMCO, is a maestro of short-term funding markets. He oversees PIMCO’s >$300 Billion pool of short-term liquidity for investors (the asset side) and also devises strategies to efficiently and robustly fund PIMCO’s longer-term investments (the liability side). Schneider gives in-depth insight on how key indicators in the short-term funding world have changed during and after the March 2023 banking crisis, such as liquidity, repo, and the shape of yield curve. Filmed the afternoon of Monday, April 17th, 2023.

To learn more about PIMCO, go to http://pimco.com/

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(00:00) Intro

(07:47) Why Are 1-Month Treasury Bills Trading So Expensive ("Rich") To Other Interest Rates?

(11:42) The Debt Ceiling

(19:02) Permissionless

(20:05) The Fed Has Done A Tremendous Job In Cutting Off Tail Risks For Funding

(30:43) Thoughts On An Inverted Yield Curve

(36:27) The Fed Pivot

(41:59) Credit Risk In Short-Term Assets

(44:16) Liquidity As Offense Rather Than Liquidity As Defense

(48:44) Blockworks Research

(49:44) Funding PIMCO's Leveraged Strategies

(56:03) Closing Thoughts On Opportunities in Short-Term Markets

(59:55) Will Banks Have To Pay More For Deposits?

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