Ep. 146: Yesha Yadav on the Galactic Risks of the US Treasury Markets

Yesha Yadav is Associate Dean and Professor of Law at Vanderbilt University Law School. She is one of the world’s leading experts on financial and securities regulation. Before Vanderbilt, Yesha worked as legal counsel with the World Bank and before that she practiced regulatory and derivatives law at Clifford Chance. This week’s podcast covers: 

• Why the US Treasury market is fundamentally broken 
• The rise of HFT and algo trading 
• The diverges uses of Treasuries 
• The US Treasury and Fed don’t know how the Treasury market functions 
• How current micro-structure leads to flash crashes 
• Why the Treasury market broke in March 2020 
• Why regulations and microstructure haven’t changed enough since 2020 
• What should be done to fix the market 
• Why we could another March 2020 event 
• Thoughts on crypto markets 
• How could crypto be self-regulated 

• Books mentioned: Trading and Exchanges (Harris), Wolf Hall, Bringing Up the Bodies, The Mirror and the Light (Mantel), Anna Karenina (Tolstoy) and The First Man (Camus).  

You can follow Yesha’s work here and here.  

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)