What's the Product of a Bank?

Michele Tannoy: There's no way i could have predicted this. But you look at the slow down and credit, then you say, well, it doesn't really make sense that there should be such a move higher in rates. As lending a man slows down, the banks intuitively have to start buying bonds. The banks can effectively buy interest down by purchasing bond back security. So what you'll tice is, as lenders pull back on bank profits, its going to see rates come down because the same reason carkas not moving is why we made new time loaves during recessions or after they have a big run up.

Play episode from 05:31

Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app