By Chris at www.CapitalistExploits.at

Last week I published the first part of a conversation I had recorded with Daniel Want, the CIO at Prerequisite Capital Management. Today I have the second part of our conversation for you. In it Daniel and I dug into:

  • The collapse in collateral in the system.
  • How derivatives pose systemic risk as high quality collateral is diminishing in the global economy and derivative exposure relative to this collateral has risen, creating counterparts risks.
  • Why and how trust is the basis for the development of high quality collateral and how this and all the other metrics Daniel measures are pointing down.
  • Daniel’s model for an investment portfolio that is both resilient AND efficient.
  • How Daniel focuses on analyzing multi-year trends in asset classes.

I invite you to listen to the second part here:

Daniel Want - Part 2

(Click on the image to listen to the podcast)

Enjoy!

– Chris

“Derivatives are like sex. It’s not who we’re sleeping with, it’s who they’re sleeping with that’s the problem.” ? Warren Buffett

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The post Collapsing Collateral, Derivatives, And Systemic Risks appeared first on crude-oil.top.