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/ Follow Jack Farley on Twitter https://twitter.com/JackFarley96 Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance Follow Blockworks on Twitter https://twitter.com/Blockworks_ ____ Use code GUIDANCE10 to get 10% off Permissionless 2023 in Austin: https://blockworks.co/event/permissionless-2023 Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/ ____ Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://rb.gy/5weeyw Market commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos ____ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets. ____ Timestamps: (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?