Funding markets have remained remarkably calm even as investors continue to debate risks around Federal Reserve balance-sheet policy and the outlook for repo. Jerome Schneider, managing director at Pimco and head of short-term portfolio management and funding, joins Ira Jersey, Bloomberg Intelligence chief US interest-rate strategist, and Will Hoffman, BI US and Canadian rates strategist, on this Macro Matters edition of the FICC Focus podcast. Schneider discusses why the funding backdrop looks more resilient than in past stress episodes, how the Fed’s backstops have changed the market’s risk profile and where he still sees pockets of illiquidity. The three also examine the tradeoffs between money-market funds and ultra-short strategies, how investors are using front-end products during bouts of volatility and what mandatory central clearing could mean for repo market structure.

The Macro Matters podcast is part of BI’s FICC Focus series.