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April 25, 2022 | The Sherman Show

S12 E8: Mapping Flows, Tracing Bottlenecks in Liquidity with Zoltan Pozsar

Macroeconomist Zoltan Pozsar, a Managing Director in the Investment Strategy and Research department at Credit Suisse, discusses with hosts Jeffrey Sherman and Samuel Lau, among other topics, the possibilities of “ugly versus beautiful” quantitative tightening by the Federal Reserve (13:18); his expectation of scant demand for Treasuries by FX hedge buyers, foreign central banks and domestic bank portfolios once those assets start rolling off the Fed’s balance sheet (15:44); a vulnerability of the U.S. banking system to mobile retail deposits (19:36) and commodity price spikes (21:48); and non-U.S. central banks diversifying part of their forex reserves away from the dollar (36:20). The podcast was recorded April 25, 2022.

In addition to his economic training in academia and market experience on Wall Street, Mr. Pozsar brings deep experience from within the financial and monetary system itself. Before joining Credit Suisse in 2015, he served as a senior adviser to the U.S. Treasury Department, focusing on matters of financial innovation. As part of the response to the global financial crisis and contributions to the resulting policy debate, in August 2008 he joined the Federal Reserve Bank of New York. There he oversaw market intelligence for securitized credit markets and served as point person on market developments for senior Federal Reserve, Treasury and White House officials. He also worked at the International Monetary Fund where he took part in framing the IMF’s position on shadow banking.

About the Hosts

About the Hosts

  • Jeffrey Sherman, CFA

    Jeffrey Sherman, CFA

    As DoubleLine’s Deputy Chief Investment Officer, Jeffrey Sherman oversees and administers DoubleLine’s Investment Management sub-committee coordinating and implementing policies and processes across the investment teams. He also serves as lead portfolio manager for multi-sector and derivative-based strategies. Mr. Sherman is a member of DoubleLine’s Executive Management and Fixed Income Asset Allocation Committees. He can be heard regularly on his podcast “The Sherman Show” (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) where he interviews distinguished guests, giving listeners insight into DoubleLine’s current views. In 2018, Money Management Executive named Jeffrey Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. He was a statistics and mathematics instructor at both the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the CFA LA/USC Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from the Claremont Graduate University. Mr. Sherman is a CFA® charterholder.

  • Samuel Lau

    Macro-Asset Allocation

    Samuel Lau

    Macro-Asset Allocation

    Mr. Lau joined DoubleLine in 2009. He is a Strategist on the Fixed Income Asset Allocation (FIAA) Committee and a contributing member on the Global Asset Allocation and Macro committees. Mr. Lau is a Portfolio Manager on DoubleLine’s strategic commodity strategy while working in portfolio management and trading for derivatives-based and multi-asset strategies, including DoubleLine's Shiller Enhanced CAPE®, Shiller Enhanced International CAPE®, Real Estate and Income, and Multi-Asset Trend strategies. He also co-hosts the Sherman Show (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) and Monday Morning Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcasts. Prior to DoubleLine, Mr. Lau was a Vice President at TCW where he worked under Jeffrey Gundlach as a Research Analyst in the Mortgage Group. He holds a B.S. from the University of Wisconsin, Madison and an MBA from the Marshall School of Business at the University of Southern California.