1. Risk is misunderstood by many investors – Bloomberg
2. The Global Savings Glut, a Modern Policy Failure – Cheap Convexity
3. Pandemic Threatens the Dollar’s Global Dominance – Joe Weisenthal, Bloomberg
4. The Financial System Should Be Stronger Than Covid-19 – Mark Whitehouse, Bloomberg
5. America Is Becoming Japan, Not in a Good Way – Bloomberg Economics

1. Marks Knows the Value of 2020 Hindsight – John Authers, Bloomberg
2. No going back: New imperatives for European banking – McKinsey
3. Dimon says coronavirus crisis is ‘wake up call’ for a more inclusive economy – CNBC
4. Stocks have not been moneyed – Jeff Snider, Alhambra
5. Skittish Treasury Hobbles Small-Business Loan Plan – Bloomberg Opinion

1. Central Banks Have Let the Genie Out of the Bottle – Bloomberg Economics
2. Stocks Are Rising Because There Is ‘No Limit’ to What Fed Can Do – Barron’s
3. Oaktree’s Howard Marks Says Fed Support Isn’t Forever, Distress Coming – Bloomberg Markets

1. Hedge funds looking at gold again – Bloomberg
2. The S&P 500 Was Stopped in Its Tracks Last Week. Here’s Why Another Drop Could Be in the Offing – Barron’s
3. Swedish Central Bank Hires BlackRock in Feud With Parliament – Bloomberg
4. Pandemic Shatters World Order, Sowing Anger and Mistrust in Its Wake – Bloomberg Politics

1. Goldman Warns Central Bank QE Not Enough for Avalanche of Bonds – Bloomberg
2. Plunge in US industrial and retail activity in April – Financial Times
3. Have the Record Number of Investors in the Stock Market Lost Their Minds? – New Yorker
4. Bank of England looks at negative rates – Bloomberg Economics
5. The Bank of Canada has completely restructured its balance sheet in response to the pandemic – Romanchuk Bond Economics

1. Pandemic Bills Are So Big That Only Money-Printing Can Pay Them – Bloomberg Economics
2. Maybe MMT is an answer to the Covid-19 economic crisis – Marketplace
3. We should prepare for a global turn to the Left, back to the world of Big Government – Noah Smith, Bloomberg
4. Fed Warns of ‘Significant’ Hit to Asset Prices If Pandemic Grows – Bloomberg Markets

Intro: “If you’re concerned the market will choke on the coming deluge of Treasury bills thereby putting upward pressure on global dollar funding rates, you should probably note that Zoltan Pozsar does not share your concerns.

And, as many market participants are aware, if what’s under discussion is money markets, and your view doesn’t conform to Pozsar’s, that divergence of opinion is tantamount to you being wrong.

In his latest note, out Thursday, the man who’s been variously described as the “oracle” of funding markets (or the “spider in the middle of the web”), builds on a foundation laid in his last two pieces, in the course of explaining why the market will digest $1.25 trillion in T-bill supply over the next two months with relative alacrity…”

“If the Fed is backstopping the credit market, why wouldn’t it backstop its natural habitat?”

Zoltan Pozsar On Money Market ‘Singularity’ And War Finance

1. The battle of the Fibos and the negative yield wall – Global Macro Monitor
2. Wall Street Heavyweights Are Sounding Alarm About Stock Prices – Bloomberg
3. Covid-19 looks like a hinge in history – Larry Summers, Financial Times

1. The world needs a new attitude towards debt – FT editorial
2. House Democrats release new $3 trillion bill in response to coronavirus – WSJ
3. Is the Fed really providing “support”? – Jeff Snider at Alhambra
4. CLOs: ground zero for the next stage of the financial crisis? – Financial Times
5. Fed chairman Powell torpedoed the notion of negative rates. But said more was needed. That is most likely “yield curve control” – Samuel Rines, Avalon
6. Traders Keep Bets on Negative Fed Rate in 2021 – Alex Harris, Bloomberg

1. World’s Biggest Wealth Fund Faces Record $37 Billion Withdrawal – Bloomberg
2. China wants to make the yuan a central-bank favourite – Economist
3. Fed Says It Will Begin Buying Corporate-Debt ETFs – “…The preponderance of ETF holdings will consist of those mainly exposed to U.S. investment-grade corporate bonds, with the remainder largely exposed to U.S. high-yield corporate bonds…” – Bloomberg
4. Why I Cashed Out of the Covid-19 Rally – “…The initial stock-market fall looked about right. The S&P 500 fell 34% between Feb. 19 and March 23, on the first estimates of the severe economic damage that Covid-19 and the measures needed to contain it would cause. What’s perplexing is what happened after that. Between March 23 and the end of last week, the market rose 31%…” – Bloomberg Opinion
5. Global economic outlook still worsening, says IMF – “…With the crisis still spreading, the outlook is worse than our already pessimistic projection. Without medical solutions on a global scale, for many economies a more adverse development is likely…” – Financial Times
6. Druckenmiller said “the prospect of a V-shaped recovery in the U.S. is ‘a fantasy’ and the risk-reward calculation for equities is the worst he’s seen in his lifetime” – Bloomberg