Last week I published the first part of a conversation I had recorded with Daniel Want, the CIO at Prerequisite Capital Management.
Today I have the second part of our conversation for you. In it Daniel and I dug into:
- The collapse in collateral in the system.
- How derivatives pose systemic risk as high quality collateral is diminishing in the global economy and derivative exposure relative to this collateral has risen, creating counterparts risks.
- Why and how trust is the basis for the development of high quality collateral and how this and all the other metrics Daniel measures are pointing down.
- Daniel’s model for an investment portfolio that is both resilient AND efficient.
- How Daniel focuses on analyzing multi-year trends in asset classes.
I invite you to listen to the second part here:
Direct download link (right-click and choose “Save As”)
“Derivatives are like sex. It’s not who we’re sleeping with, it’s who they’re sleeping with that’s the problem.” ? Warren Buffett