Zoltan Pozsar on What’s Going on in Rates Markets Right Now

(Bloomberg) -- Listen to Odd Lots on Spotify 
Listen to Odd Lots on Apple Podcasts

Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets.

There's a lot happening in the plumbing of the financial system. The Federal Reserve's reverse repo facility has seen huge takeup from financial market participants seeking to park excess cash. Meanwhile, the central bank has also announced the start of a new standing repo facility. And, of course, we're nearing the start of tapering, when the Fed will start to wind down its asset purchases. On this episode, we bring back Credit Suisse Strategist Zoltan Pozsar to talk about everything that's going on right now. He describes a system awash with dollars that no one wants, and walks us through what that means for broader markets.

©2021 Bloomberg L.P.