Negative Convexity (Page 9)

Negative Convexity

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The zombification of Corporate America

Over the past three weeks, there’s been a lot of discussion of duration-related mark-to-market losses, depositor flight, money market strains, and government interventions pertaining to the banking sector. What I haven’t seen a lot of discussion on is the traditional cause of banking crises: people or firms who

Two weeks of bank failures and government interventions: the big picture

In the past two weeks, we’ve seen the closure or rescue of four banks: Silicon Valley Bank, Signature Bank, First Republic Bank, and Credit Suisse. We’ve also seen large-scale interventions from central banks, in the form of the Fed’s new Bank Term Funding Program (BTFP) and the

Some thoughts on the failure of Silicon Valley Bank

The tech and finance worlds have been consumed for the last four days by the collapse and closure of Silicon Valley Bank (SVB), a bank serving… Silicon Valley. I’ve been following the developments closely and wanted to organize some my thoughts into a short commentary piece. What is/was

ERCOT market design options—a summary of E3's November 2022 report

This note summarizes the “Assessment of Market Reform Options to Enhance Reliability of the ERCOT System,” a report commissioned by the PUCT from energy consulting firm E3 and released on November 10, 2022. The PUCT is currently seeking comments from the public on this report. Key Takeaways · All six of

Allocating assets between taxable and non-taxable accounts

People have been asking me lately about whether there is any advantage to putting certain types of investments in taxable versus non-taxable accounts. Short answer: yes, there is. Here is a short post on how to think about sorting investments between types of accounts. We'll first discuss the

Andrew Huberman and Andy Gilpin's thoughts on hypertrophy

I love Andrew Huberman's podcast, but there's so much information there that I tend to get lost. Just for my own use, I decided to summarize his ideas on various topics. This post is on hypertrophy. Everything here is based on Huberman's conversation with

How government policy and markets benefit homeowners

I had a long conversation last night with a friend regarding why she should buy a house. Obviously everyone's situation is different, but I want to list out a number of deliberate U.S. policy decisions that make homebuying advantageous for people with steady jobs. The U.S.