March 26, 2018· 30 min

The World's Most Controversial Interest Rate Is Haunting Us Again

Scott Peng

Orality

Model

72%

Oral-dominant (speeches, podcasts, storytelling)

Speaker Breakdown

HostTracy Alloway(1,254 words)

M:29%

HostJoe Weisenthal(781 words)

M:28%

GuestScott Peng(2,848 words)

M:27%

Oral Indicators

Agonistic35%

literally, completely, totally

Engagement54%

you, our, your

Memory Aids100%

listen, now, right

Repetition100%

libor (93x), rate (37x), what (36x)

Parallelism97%

And I'm Joe Weisenthal...., So, it became a big deal durin..., And then after the financial c...

Sound Patterns52%

28 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases7%

i mean, if you will

Literate Indicators

Hedging16%

could, relatively, somewhat

Passive Voice18%

been rigged, being manipulated, be manipulated

Abstract Nouns22%

investment, recommendation, edition

Subordination7%

because, since, however

Sentence Length43%

Avg: 15.7 words/sentence

Word Complexity48%

investment, analyze, anticipate

Academic Markers0%

Impersonal Style46%

290 personal pronouns found

Descriptive Style100%

literally, completely, totally

Description

Remember LIBOR? The London Interbank Offered Rate measures the cost of money when banks borrow from each other. It famously blew out during the financial crisis, but for a long time since then it's been dormant. Only lately it's started to creep higher again. On this week's Odd Lots podcast, we talk to Scott Peng, the founder, CEO and CIO of Advocate Capital Management, who warned in early 2008 that there was something fishy about the way the measure was being priced. In the post-crisis period, it was discovered that the rate -- which helps price trillions of dollars worth of other assets -- was being gamed or manipulated by traders. Peng walks us through the history of the rate, what it's telling us now, and what may ultimately replace it. See omnystudio.com/listener for privacy information.

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