Interactive Brokers

Podcast: Beyond Consumers’ Cumulative Misery

Neil Azous, Founder and Chief Investment Officer of Rareview Capital joined Andrew Wilkinson of Interactive Brokers to discuss explains the inevitable reality of how bond market participants price in interest rate cuts even before the Fed’s tough love for the market is done.

Click this LINK to listen to the podcast.

We know that based on what’s priced into the yield curve that the last interest rate hike is expected in December of this year and you can keep going down this rabbit hole and saying, “OK, well the quickest that the Fed ever cut an interest rate is 1.4 months” or “The average that they cut after the last hike is 6 1/2 months” or “The longest that they took after the last interest rate hike is 14.7 months.” And then finally you can add in one more input that just says something like this “What’s the speed at which they cut the interest rate?”

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