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How The Covid Shock Nearly Destroyed The Financial System
Manage episode 286431537 series 2137790
Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.
Topics covered include:
- What are the differences between shocks and vulnerabilities
- What are the four main vulnerabilities the Federal Reserve monitors
- How deleveraging and demands for liquidity lead to market stresses
- What are the types of money market funds and how were they impacted by the Covid 19 shock
- How was Treasury bond trading impacted by the Covid shock
- Why the Federal Reserve stepped in to stop the market contagion from spreading
- What are the downsides to central bank interventions
- What individual investors can do to protect against future shocks
Thanks to Mint Mobile and Truebill for sponsoring the episode.
For more information on this episode click here.
Show Notes
Financial Stability Report November 2020—Board of Governors of the Federal Reserve System
How Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisor
Overnight Index Swap by James Chen—Investopedia
Cash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—Invesco
Related Episodes
270: Repo Rates Soared—Here’s Why It Matters
291: How To Survive the Coronavirus (COVID-19) Shutdown
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
492 bölüm
Manage episode 286431537 series 2137790
Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding.
Topics covered include:
- What are the differences between shocks and vulnerabilities
- What are the four main vulnerabilities the Federal Reserve monitors
- How deleveraging and demands for liquidity lead to market stresses
- What are the types of money market funds and how were they impacted by the Covid 19 shock
- How was Treasury bond trading impacted by the Covid shock
- Why the Federal Reserve stepped in to stop the market contagion from spreading
- What are the downsides to central bank interventions
- What individual investors can do to protect against future shocks
Thanks to Mint Mobile and Truebill for sponsoring the episode.
For more information on this episode click here.
Show Notes
Financial Stability Report November 2020—Board of Governors of the Federal Reserve System
How Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisor
Overnight Index Swap by James Chen—Investopedia
Cash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—Invesco
Related Episodes
270: Repo Rates Soared—Here’s Why It Matters
291: How To Survive the Coronavirus (COVID-19) Shutdown
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
492 bölüm
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