Transcript: Zoltan Pozsar on What’s Going on in Rates Markets

There's a lot happening in the plumbing of the financial system. The Federal Reserve's reverse repo facility has seen huge take-up from financial market participants seeking to park excess cash. Meanwhile, the central bank has also announced the start of a new standing repo facility. And, of course, we're nearing the start of tapering, when the Fed will start to wind down its asset purchases. On this episode of the Odd Lots podcast, we bring back Credit Suisse strategist Zoltan Pozsar to talk about everything that's going on right now. He describes a system awash with dollars that no one wants, and walks us through what that means for broader markets. Transcripts have been lightly edited for clarity.