Asset Allocation | Economics & Growth | Equities | US
Ep. 153: Mustafa Chowdhury on Mortgage Risks, Fed Shocks and Derivatives
- By Bilal Hafeez
- 1 min read
Mustafa is a rates guru and member of the research team at Macro Hive. Before this, Mustafa was the Head of Rates, FX, and Derivatives at Voya Investments, where he helped manage $40 billion of assets. Prior to that, he was a Managing Director and Head of US Rates and MBS Strategy at Deutsche Bank. And in the 1990s, he was Co-head of Asset-Liability Management at Freddie Mac, where he was responsible for managing one of the world’s largest fixed income derivatives portfolios and trading desks. In this podcast we discuss:
- How financial institutions manage mortgages on their books
- How options are used to manage market risk
- What triggered sub-prime/global financial crisis
- Why households and mortgage markets are safer today than in 2008
- How the Fed has nationalized the mortgage market
- Will Fed quantitative tightening (QT) impact markets?
- View on US interest rates?
- Can the US curve invert more?
- Why the Fed will end up breaking something
- View on equities and credit
- Size of Fed balance sheet losses
- Thoughts on Bank of Japan
- Books recommended by Mustafa: A Random Walk Down Wall Street (Malkiel), A Monetary and Fiscal History of the United States (Blinder), Surveillance State (Chin, Lin)
You can follow Mustafa here
Read the full transcript 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.)