Derek Moore and ZEGA CEO Jay Pestrichelli are back again to discuss the CBOE launching a new 1 Day VIX Index and what it means in relation to the viability of the traditional VIX Index. Plus, they note that 1 month treasury bill yields are far below the 3 month which is odd when looking historically at the relationship. Hint, it has something to do with money market funds and the Fed Overnight Reverse Repos. Then they discuss the decline in the money supply but when put into context, is it really a big deal? Finally, they dish out some recommendations.

1-month US Treasury Bills yield much less than 3-month US Treasury Bills

How historic is the difference between 1-month yields and 3-month yields?

What does it mean if anything when 1-month T bills yield less than Fed Funds?

CBOE launches a new 1 Day VIX Index

Is the traditional VIX Index broken?

Differences between various VIX index terms and what they tell us.

What is the VVIX Index?

What does the VVIX Index tell us about option prices on the VIX?

Current shape of the VIX Futures expiration curve

Relationship between spot VIX (what you see on TV) and the VIX Futures

Flows into money market funds continue but from where?

Overnight Reverse Repos from the Fed as a competitor to 1-month treasury bills

Mentioned in this Episode:

Debt Ceiling Risk | Recession Signals | 10/3 Yield Curve Inversion Podcast https://podcasts.apple.com/us/podcast/debt-ceiling-risk-recession-signals-10-3-yield-curve/id1432836154?i=1000609174431

Can the Fed Fail? https://podcasts.apple.com/us/podcast/can-the-fed-fail-q1-winners-surprise-the-crowd/id1432836154?i=1000608060319

What are Reverse Repos and Repos? Fed usage of overnight reverse repos https://open.spotify.com/episode/09VOIffldtn3WxNm7rzyNx

Jay Pestrichelli's book Buy and Hedge https://amzn.to/3jQYgMt

Derek's new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Contact Derek [email protected]