January 31, 2024· 42 min

Mark Cabana on the Fed, QT and Treasury Funding

Mark Cabana

Orality

Model

86%

Highly oral (epic poetry, sermons, hip-hop)

Speaker Breakdown

HostTracy Alloway(1,436 words)

M:28%

HostJoe Weisenthal(1,250 words)

M:29%

GuestMark Cabana(4,947 words)

M:26%

Oral Indicators

Agonistic36%

totally, basically, absolutely

Engagement49%

you, our, your

Memory Aids100%

listen, so, like

Repetition100%

they (97x), like (57x), think (54x)

Parallelism92%

And I'm Joe Weisenthal...., But, yeah, a lot of moving par..., And, of course, it is Fed week...

Sound Patterns56%

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

Formulaic Phrases0%

Literate Indicators

Hedging11%

could, maybe, quite

Passive Voice9%

was fed, is fed, be used

Abstract Nouns24%

investment, business, creditworthiness

Subordination7%

because, until, since

Sentence Length43%

Avg: 15.8 words/sentence

Word Complexity49%

investment, analyze, anticipate

Academic Markers0%

Impersonal Style51%

407 personal pronouns found

Descriptive Style100%

apply, quarterly, suddenly

Description

It's a busy week for the bond market with a meeting of the Federal Reserve and the release of the US Treasury's quarterly refunding statement. While a lot of people have been focusing on when the Fed will cut benchmark interest rates, there's also an ongoing debate about how fast the central bank will shrink its balance sheet given last year's banking crisis and the recent drama in the repo market. In this episode, we speak with Mark Cabana, longtime rates strategist at Bank of America, about the big questions lurking behind the week's events. We talk about who will buy all the bonds the US is selling, what will happen to bank balance sheets as rates go down, and the impact of liquidity on the broader market. See omnystudio.com/listener for privacy information.

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