Economic Insights

Since 2008's subprime mortgage meltdown, policy implementation, decentralizing risk, and correcting systematic issues continue today. One such instrument, Credit Risk Transfers (CRTs), which have an enigmatic backstory, have become a popular means of decentralizing credit risk while providing an avenue for institutional investors to diversify their agency mortgage loan exposure.

I don’t know about you but to me, 2020 feels like it’s about three years long. The market started off the year incredibly well only to fall off a cliff in late February. Since February, there’s been significantly higher uncertainty than any of us are used to.

I don’t know about you but to me, 2020 feels like it’s about three years long. The market started off the year incredibly well only to fall off a cliff in late February. Since February, there’s been significantly higher uncertainty than any of us are used to.

As we near the 2020 Presidential election, rhetoric from both sides is ramping up. Depending on your personal “echo chamber” of social media, you are likely confident why your candidate is the best choice, and the opposition is the worst. However, when it comes to economic prosperity and the financial markets, who is the best choice? To answer that question, we will focus on the “policies,” not the “politics.”

It is a given that you should never mention the “R” word. People immediately assume you mean the end of the world: death, disaster, and destruction. Unfortunately, the Federal Reserve (Fed) and the U.S. Government also believe that recessions “are bad.” As such, they have gone to great lengths to avoid them. However, what if “recessions are a good thing,” and we just let them happen?

Almost eight months into coronavirus-led shutdowns and limitations, it appears that most individuals have adapted to this “new normal” and way of life. Since March 2020, many Americans have experienced extreme financial market volatility, job layoffs, and asset class dislocations that rival the Great Recession of 2008.

HANDLS Indexes co-founder Matthew Patterson speaks with Nasdaq's Jill Malandrino, on #TradeTalks to discuss dislocations in the markets caused by a Global Pandemic, and the aggressive actions the Federal Reserve took to forestall a major dislocation in the securities market.

It’s no secret that the coronavirus (COVID-19), which started in China and has now spread to other nations including the U.S., is negatively impacting...