2 Question Tuesday – 04/04/2023 – Will Shadow Banking Cause a Credit Event & Will BOJ Chief Spark Selloff in Treasurys?

Welcome to 2 Question Tuesday. This week’s client submitted questions were:

  1. Will US Shadow Banking & Private Equity cause credit events?
  2. Will new Bank of Japan chief spark a selloff in U.S. Treasurys?

Phil, Mike, and Larry talk about the U.S. Shadow Banking system and private equity firms following the slew of recent bank failures. A recent Bank of America survey found that investors’ biggest concern in the wake of these failures is a systemic credit event that could be caused by these factors. They then address the Bank of Japan appointing a new leader who is expected to raise Japanese interest rates. They discuss if this could cause Japanese investors, the biggest foreign holders of U.S. government bonds, to sell those bonds.

Submit your questions to question@2questiontuesday.com

As always, if you have any questions at any time, please feel free to call your adviser directly at (845) 691-4035.

Special guest host Lawrence Carrel’s books available available at Amazon.com