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Investment WarsWe all love stories - telling them and hearing them. We tend to construct narratives incorporating data points and information that reinforce our point - only capturing a part, and perhaps the wrong part, of the full story within the dynamic and... Author: Fountainhead Asset Management Language: en Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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35. Liquidity, Valuation, and the Return of the Yield Curve
Episode 35
Monday, 10 November, 2025
Debate: Liquidity, Valuation, and the Return of the Yield CurveFeaturing: David Sherman, Founder of CrossingBridge AdvisorsDavid Sherman joins Investment Wars for a wide-ranging discussion on navigating today’s complex fixed income and equity markets—from the aftermath of a decade of zero interest rates to the reemergence of inflation, tighter liquidity, and shifting policy dynamics. In this conversation, we explore how investor behavior evolved in an era of “easy money,” what lessons were learned when rates abruptly reversed, and how to think about liquidity, valuation, and ballast in a world of persistent uncertainty.In today’s episode, we explore:How the decade of zero and negative rates conditioned investor behavior and risk-takingWhy today’s “complicated” market reflects both tightening liquidity and elevated valuationsThe interplay between real rates, inflation, and policy expectations heading into 2026Practical frameworks for defining “ballast” in modern portfolios and matching assets to time horizonsThe importance of liquidity risk—and why many investors still aren’t pricing it correctlyOpportunities and risks in global high yield, including the growing appeal of Nordic credit marketsWhy private credit and direct lending may be less liquid (and less transparent) than investors assumeHow to rethink risk-free rates, personal cost of capital, and portfolio structure in a high-deficit worldSubscribe to Investment Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode. For guest opportunities or to share feedback, contact us at OCIO@obsidiancio.com.—IMPORTANT DISCLOSURE: Obsidian CIO sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is offered only to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
