Why the Market Is Mispricing Insolvency Risk (w/ Matt Rowe & Max Wiethe)

Here at Real Vision it’s clear that viewers are keenly focused on Raoul’s unfolding thesis and the potential that the market is teetering between hope and insolvency, but so are many of our contributors. Matt Rowe of Headwaters Volatility Solutions was inspired by Raoul’s recent call for an insolvency phase and in this special edition of Real Vision Live will be putting his corporate credit hat back on to provide a deeper dive into how both credit and equity markets are totally mispricing the insolvency risks looming large post-COVID. Please note that Matt has an extensive background in corporate credit and before founding Headwaters Volatility Solutions was the managing partner of a fund focused on convertible bond and capital structure arbitrage.

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Why the Market Is Mispricing Insolvency Risk (w/ Matt Rowe & Max Wiethe)

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[travelreview]

Great interview Matt, as always, You are prepared and ask the right questions. Max is a wealth of knowledge

[vbcham]

Thanks chaps. I thoroughly enjoyed this conversation.

[vpeters]

As a small business owner, I have been insolvent for 8 months, but have pulled a rabbit out of my hat each month so that there is no public record of
how close to failure I actually am. P.S. Just put a property under contract, so may just make it by the skin of my teeth, Wonder how many other businesses
are in the same boat ( big or small)

[sukhrajsohal]

Great questions. Great answers. Great interview.

[Lawliet]

4:52 To skip commercial. 4:00 To watch commercial.

[soronos]

Million dollar question - when will the insolvency begin?

[dpie]

I am not a genius but I will answer: Yes, the market underestimate insolvency risk because they know that the FED and ECB will come to the rescue and buy it all at full price. How did we end up here with this level of madness? (Greenspan!).

[shawncash]

Looking at my trade portfolio gives me so much joy..

[Bennydyk]

I went to high school with Matt, he's a great guy. I would love to hear his opinion on investing in Bitcoin.

[sivi]

Massively interesting view at 15m30
Never thought about it that way !
Great info thx

[djsunshine]

Great discussion. If Govt don't do it good Companies/Institutions go down or be up for Chinese acquisition! I n good times Fed has to auction it off!

[djq]

Where can I get me one of them shirts that black guy was wearing during the real vision adverts?

[taostellar]

Matt reminds me of Damian Lewis's character in Billions.

[jeffb.]

Well, passive capital is just that .. passive. It doesn't think about insolvency or anything else for that matter :D

[symbiot]

I thought " Saved by the bell " was a boxing term, but it applies to the US markets.

[richardmeade]

I think I understood all his individual answers but I'm none the wiser as too what will actually happen vis insolvency. Either we get an unwinding or we just print money to pay people to shop and everyone owns everything and nothing? Is that what they're saying?

[lisalph]

Why is this video being posted now? Sounds like it was taken a couple of months ago.

[mattbob]

today is the most perfect day to post this lmfao

[joshnalder]

Wouldn't letting the companies turn insolvent start the collapse?

[buckwheaton]

Shocking how easy the free market is swapped for some form of fascism, where government is invited to be a major and permanent intervenor in the business world. If we destroy free price discovery, we destroy the ability to make rational and honest determination of profit and loss. This is right straight out of von Mises and Austrian economics. We have allowed massive government debt to hold us hostage to inflating our currency to nothing. We must allow prices of everything, including the price of the dollar and the yield curve, to be set by the market.