Jake Claver Live - XRP & Digital Assets Q&A Livestream. Jake Claver in this recording: “We've been through this many times, but for those that are new here, the reverse carry trade is basically there's a margin call.”
Also coveredtokenization, institutional custody, cold wallet
More on this subject: jakeclaver.com.
What this recording covers
In this Monday livestream, Claver focuses on the mechanics of coordinated intervention in the currency market by the US and Japan. He explains that allowing Japan to post its US treasuries as collateral in the repo market, in order to borrow dollars and buy yen, prevents those bonds from flooding the open market and spiking treasury yields. Claver describes this as adding leverage on top of an already highly leveraged system, arguing it extends the carry trade unwind rather than resolving it. He notes that without domestic demand for treasuries from banks issuing stablecoins at scale, the Federal Reserve would have to expand the money supply, risking inflation. He also describes his firm's fee schedule for a managed strategy and explains the derivatives market using an analogy involving collateral being lent and re-lent multiple times.
Where this fits
This page hosts a recorded video and a short summary of what it covers. It is general information, not investment, tax, or legal advice, and not a recommendation to buy or sell any asset or to form any entity. Rules change and older recordings may describe a position that has since moved. Speak to a qualified professional before acting.