I loved this podcast episode and all the topics discussed. I don't agree with his aversion to US stocks or his forecast for Gold :-) However, I learned a lot from listening to his clear, concise explanations on the recent events and macro data points. Thanks for putting this together, Sagar.
One question for Ryan or you....any good GCC ETFs out there?
Thanks, and glad you loved the episode. Ryan had sent me names of some of the ETFs: Alinma Saudi Government Sukuk ETF Fund- Short Maturity, Al Rayan Qatar ETF, Al Khabeer Diversified Income Traded Fund, QE Index ETF, iShares MSCI Saudi Arabia, iShares MSCI Saudi Arabia Capped UCITS ETF USD, Invesco MSCI Saudi Arabia UCITS ETF.
Very good analysis. As there is a big gap between money market yield and bank deposit rate forcing $1 trillion to move away from deposits to MMF, why the banks do not increase the deposit rates, as major part of bank's lending is floating rate based like mortgage, commercial property loan, company working capital loan etc. Banks must be earning higher yield on these loans with increasing fed rate. Also who are the new borrowers absorbing the additional money flowing to MMF at this high interest rate, especially since 3M-2Y yield spread is negative 1 pc.
Thanks Aninda! Banks are reluctant to raise deposit rates as it would hurt their profitability as the Net Interest Margins (NIMs) would contract. In the US, more than 94% of the mortgages are fixed rate for 30Y and most of the homeowners refinanced their mortgages post covid when rates were near 0. Thus, higher deposit rates would hurt the banks a lot more than expected.
I loved this podcast episode and all the topics discussed. I don't agree with his aversion to US stocks or his forecast for Gold :-) However, I learned a lot from listening to his clear, concise explanations on the recent events and macro data points. Thanks for putting this together, Sagar.
One question for Ryan or you....any good GCC ETFs out there?
Hi!
Thanks, and glad you loved the episode. Ryan had sent me names of some of the ETFs: Alinma Saudi Government Sukuk ETF Fund- Short Maturity, Al Rayan Qatar ETF, Al Khabeer Diversified Income Traded Fund, QE Index ETF, iShares MSCI Saudi Arabia, iShares MSCI Saudi Arabia Capped UCITS ETF USD, Invesco MSCI Saudi Arabia UCITS ETF.
He personally likes XGLF (Trackers MSCI GCC Select Swap UCITS ETF). Furthermore, you can DM him on LinkedIn: https://www.linkedin.com/in/ryanlemand/
Hope you would find these useful!
Thanks so much for taking the time to respond with the ETF names. I will look into them. Have a great day!
Very good analysis. As there is a big gap between money market yield and bank deposit rate forcing $1 trillion to move away from deposits to MMF, why the banks do not increase the deposit rates, as major part of bank's lending is floating rate based like mortgage, commercial property loan, company working capital loan etc. Banks must be earning higher yield on these loans with increasing fed rate. Also who are the new borrowers absorbing the additional money flowing to MMF at this high interest rate, especially since 3M-2Y yield spread is negative 1 pc.
Thanks Aninda! Banks are reluctant to raise deposit rates as it would hurt their profitability as the Net Interest Margins (NIMs) would contract. In the US, more than 94% of the mortgages are fixed rate for 30Y and most of the homeowners refinanced their mortgages post covid when rates were near 0. Thus, higher deposit rates would hurt the banks a lot more than expected.