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Speaker 1: Bloomberg Audio Studios, podcasts, radio news, the single best idea

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Speaker 1: on a really interesting day, just to give you a

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Speaker 1: window and how we blow things up yesterday afternoon after

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Speaker 1: Paul Sweeney and Scarlett fu market sort of fell apart banking.

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Speaker 1: I can assume many of you know the story. And

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Speaker 1: then overnight you see how Asia opening at about seven

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Speaker 1: pm New York time, and then over to Europe. How

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Speaker 1: the reaction is. The reaction was not good on a

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Speaker 1: correlated basis, looking at equities, bonds, currencies, commodities. It was Oh,

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Speaker 1: there was a whole new review here of what are

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Speaker 1: we doing in private credit? What are we doing in

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Speaker 1: some of the more esoteric things that harken back to

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Speaker 1: two thousand and five and two thousand and six. We

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Speaker 1: blew up the show. Randy Schwimmer Churchill, thank you for

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Speaker 1: joining us on short notice. On short notice, Christopher Whalen

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Speaker 1: joined us, just out with the second edition of his

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Speaker 1: new book, Inflated. Chris Whalen on the derivative moment.

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Speaker 2: Well, they're dealing with a private market where there's no

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Speaker 2: visibility and no price transparency whatsoever. A lot of investors

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Speaker 2: have been buying stuff that they don't understand, of course,

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Speaker 2: and you know they endowments, the big pensions, the universities,

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Speaker 2: everybody has been involved. They've been selling this stuff the

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Speaker 2: retail to tom.

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Speaker 1: I don't disagree. I mean they all want to make

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Speaker 1: two hundred beeps right.

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Speaker 2: Well, they're following Warren Buffett's model, go buy an insurance company.

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Speaker 2: So you have Apollo Ares Brookfield. Everybody's in this game

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Speaker 2: and you're going to read about this. They've moved a

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Speaker 2: lot of this exposure offshore.

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Speaker 1: A raging debate. That's Chris Whalen again, an author out

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Speaker 1: with his book Inflated, and of course Whale and Global Advisors.

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Speaker 1: I can't say enough about that's an opinion. There are

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Speaker 1: many different opinions out there, and our goal into the

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Speaker 1: end of the year is to give you a cross

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Speaker 1: section of views. The one thing everyone agrees on is

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Speaker 1: there is a wall of money going into alternatives. To

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Speaker 1: use a phrase as well. Our alternative was to have

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Speaker 1: Ben Ladler with us. He nailed it early in the morning,

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Speaker 1: he said, you know, the tab will recover. It did

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Speaker 1: recover across the Friday morning. Let's see where we are

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Speaker 1: at the Friday closed it into the weekend. Ben Ladlor

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Speaker 1: on the market.

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Speaker 3: Listen. I think the fhas you're seeing right now are

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Speaker 3: much more about the sort of symptom of the big

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Speaker 3: rally that we've had than they are caused for fundamental

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Speaker 3: concern the sphere of the unknown. We feel we've seen

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Speaker 3: this movie before, you know, whether it was SVB in

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Speaker 3: twenty twenty three or two thousand and eight. You know,

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Speaker 3: high yield spreads are at five elos. The regional bank

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Speaker 3: heavy Russell has just ripped. But you know, let's take

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Speaker 3: a step back here and take up and take a.

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Speaker 1: Breath, please.

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Speaker 3: You know, we have literally just had all the big

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Speaker 3: banks reporting, and the results are good, and the cowboy

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Speaker 3: levels are strong. The regionals, which is you know, the

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Speaker 3: focus of this right now, are much better positioned than

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Speaker 3: they were even as recently as twenty twenty three, both

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Speaker 3: on the capital side and the provisioning side the economy.

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Speaker 3: If you believe the outcast is you know, growing it

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Speaker 3: through three percent, the feather started cutting. I think at

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Speaker 3: the end of the day, we're going to look back

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Speaker 3: on this if we can even see it in the

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Speaker 3: chart as an idiosyncratic event. You know, you talked about

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Speaker 3: the Vicks later fixed twenty seven. You know it's clearly

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Speaker 3: been wider before. But you know that's a one stand

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Speaker 3: deviation event. It's historically paid you to be to to

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Speaker 3: lean against that and be dripping money into the market.

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Speaker 1: Let me review then, lailor Brendesco. So they just be

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Speaker 1: see Christmas of I'll say four years ago. I'm sorry,

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Speaker 1: I can't remember, folks, and the market was horrendous. There

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Speaker 1: was a Christmas Eve rally. Ben Ladler neiled it. He

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Speaker 1: has been participating in his equity market. He has said

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Speaker 1: stay on board. He has given us month to month

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Speaker 1: optimism from Brandesco. Benjamin Ladlor there this morning. I need

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Speaker 1: to say thank you to the team. It's always difficult

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Speaker 1: to do this. Everybody's schedules are crazy, particularly the remote

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Speaker 1: yesterday at the Council on Foreign Relations with the Governor.

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Speaker 1: Governor Waller of the Federal Reserve System. We're on on

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Speaker 1: Ample podcasts, on Spotify, on YouTube podcasts. A single best

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Speaker 1: idea