Not Another Investment Podcast
Understand investing beyond the headlines with Edward Finley, sometime Professor of Finance at the University of Virginia and veteran Wall Street investor.
Not Another Investment Podcast
The Hidden World of the Money Market (S1 E1)
In this episode we begin our journey into the world of financial markets. With the guidance of our host, Edward Finley, a seasoned Wall Street investor and sometime Professor at the University of Virginia, we'll unlock the complexities of how capital markets provide vital capital for households, firms, and governments. We will decode the rich tapestry of the US capital market, from the bond market, the equity market, to the often overlooked money market, with its unique short-term debt securities.
What if we told you everyone uses the money market to provide or secure short-term financing? You'll be amazed as Edward unpacks the mysterious world of the Money Market in this episode. We will explore the many uses firms, households and governments make of this very important market, including how the Federal Reserve Bank uses the Money Market to execute monetary policy. But we don't stop there. Edward takes us back to the 1970s to revisit the innovation of Money Market funds, shedding light on how these funds gave average investors a chance to play in the big leagues but introduced unanticipated risks.
Hold on tight as we catapult into one of the most turbulent periods in financial history—the 2008 liquidity crisis. Edward dissects the role that Money Market funds played in events leading up to the crisis, triggered by the dramatic bankruptcy of Lehman Brothers. We'll explore the government's response, from the Treasury's insurance scheme to protect investors to the Securities and Exchange Commission's preventative measures for future crises. The knowledge and insights gained from this episode are sure to leave you with a comprehensive understanding of the money market and its pivotal role in our economy. Don't miss it!
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Hi, I'm Edward Finley, a Sumtime Professor at the University of Virginia and a veteran Wall Street investor, and you're listening to Not Another Investment podcast. Here we explore topics and markets and investing that every educated person should understand to be a good citizen. Welcome to Core, episode 1. I'm Edward Finley, so we're going to kick off today and discuss what exactly are we talking about when we talk about financial markets. The data that I'm going to share with you today is all as of October 31, 2023, except where I make specific note. Broadly speaking, financial markets facilitate the provision of capital to households, firms and government. There are two broad capital market segments. There's the short-term capital market, which is also known as the money market, and there's the long-term capital markets, which are the bond market and the equity market. The US capital markets at the end of 2023 were about $114.7 trillion. That's an enormous size. Here I have a chart for those of you that are watching on YouTube and those of you that aren't watching, just as a reminder. You'll always find any of the data or charts that I share on this podcast on the website. So you see here the capital markets in the US about $115 trillion, more or less the largest part of that, which might surprise some of you, is the bond market. The bond market is almost $51 trillion out of the $115 trillion. The next largest, though not far behind, is the equity markets, at around $49 or $50 trillion, and then the smallest among the three is the money markets.
Speaker 1:So let's talk a little bit about the money markets. Now the money markets what do they do? Well, they provide short-term capital for banks, firms and the government, and they do so in the form of very short-term debt securities that are highly marketable. As you saw a moment ago, the short-term capital market, or the money market, is about $14.4 trillion, and here again I'll give you a sort of slide to share with you what exactly we're talking about here. You'll see that the short-term money market is really comprised primarily of four pieces. The largest piece are treasury bills, the next largest at about $5.5 trillion. The next largest piece would be repos. All of this will make sense in a moment Repos at about $5.2 trillion, next up certificates of deposit at $2.5 trillion, and then last commercial paper at about $1.2 trillion. So let's start with the biggest.
Speaker 1:Let's start with the treasury bills. So how does the money market provide short-term capital funding to government in the form of treasury bills. Well, the government the national government issues treasury bills to cover their short-term needs, such as a difference in the timing between their expenditures and their tax collections. Don't confuse treasury bills with funding the national debt. That's not what treasury bills do. Treasury bills are less than one year in term and really they're just meant to smooth the cash flows for the national government. You can imagine that most of us pay our taxes in April of each year, but the government has all kinds of expenses that occur all throughout the year, and so T-bills helps the government smooth those cash flows.
Speaker 1:T-bills are backed by the full faith and credit of the United States. That's about the closest thing to risk-free as exists in capital markets. They have maturities of anywhere from $4.5 to $52 weeks and they can be purchased directly at auction via directly from the treasury, or they can be purchased on what's called the secondary market, that is to say, simply somebody buys a T-bill, holds it for a little while and then sells it to someone else. We'll talk all about the secondary market later when we talk about how markets function. The 13-week and 26-week treasury bills auctions are announced on Thursdays and then they're auctioned on Mondays and they settle on Thursdays.
Speaker 1:Now let me explain for a second here. It's a good moment to pause and talk a little bit about what we mean when we say settled. So when you buy a security let's say at auction on a Monday, you buy a T-bill, you're going to have to send your money to the treasury and the treasury is going to have to issue you the T-bill and that takes a little bit of time. And so the amount of time that it takes between the date of your purchase and the date that you get the security is called the difference in settlement. So settlement is when you actually get your security. The nomenclature in finance when we talk about the time in which security settle is we use the shorthand T plus T plus T, standing for time, the time in which you purchase the security, and then the plus is how many business days until you actually get the security.
Speaker 1:So 13 and 26 week T-bills the shortest ones are announced. Those auctions are announced on Thursdays. Government auctions them on Mondays. The T-bills settle on Thursdays. 52 week bills are announced every fourth Thursday. Auction on that Monday and settle on the following Thursday. That is to say, year-long T-bills are auctioned off pretty much every month.
Speaker 1:The minimum denominations of T-bills is $100. Now if you need to press pause and rewind, you can do that $100. The national government feels very strongly that every American should be able to lend money to the national government and they don't want anything to get in the way of that. And so anyone can buy a T-bill at auction for a denomination of $100. It's much more common for T-bills to be auctioned in $10,000 increments, but it's not impossible to buy one for $100. T-bills are sold at a discount to the face value of the bond and mature at face value.
Speaker 1:Now, when we get to bonds later, we're going to talk about this in much more detail. For the moment, I think all you have to understand is that T-bills don't pay interest periodically. They only pay you the interest on the date of maturity. So if the interest on that T-bill of $100 is going to be let's just pretend a dollar, then you might buy it for $100 and when it matures you get $100. Interest that's earned on a T-bill is exempt from state and local taxes, and T-bills are some of the most liquid and safest of all securities. So again, t-bills that's about $5.5 trillion of the money market is how the national government funds its short-term needs, the difference between the timing of their expenditures and their tax collection. They're backed by the full faith and credit of the United States, which is about as close as you can get to risk-free in capital markets. They can be purchased directly at auction or from someone who's purchased one themselves, and their maturities range from four weeks to up to a year.
Speaker 1:["sortificates of Deposit"]. Next up is we have certificates of deposit. Certificates of deposit are ways that banks fund their short-term needs, short-term capital market needs. Banks issue certificates of deposit to allow them to increase the maturity of their deposits, and they pay slightly higher rates for that. So consider the following how does a bank normally operate? Well, a bank normally operates by accepting deposits from depositors and lending out money, and the typical account that a depositor might open at a bank is a checking account or a savings account. Well, that's fine, except, as we all know, if you want your money back, you just show up at the bank and take it back. That means that bank's liabilities, the amount that they have to pay people back in the form of their deposits, is very, very short-term in maturity, daily, but the loans that they make are quite long-term in maturity. They might make loans for two years, three years, five years or more, and so sometimes banks need to increase the amount of deposits that they hold with longer maturities.
Speaker 1:And this is where certificates of deposit enter the picture. They're sometimes called time deposits and it means that you can't get your money back without a penalty before they mature. They're fixed in term and those terms vary in length. Typically, certificates of deposits can be anywhere from one, three or six months, all the way up to one to five years. Unlike a T-bill, they all bear a fixed rate of interest, so they don't sell at a discount and you don't have to wait until maturity to earn your interest during your maturity as you go along. Only the shortest maturity certificates of deposits are considered money market instruments, that is, certificates of deposits CDs sometimes called that have one to three months of maturity. The interest and principal are paid to the deposit or at the conclusion of the term and, of course, because these are bank deposits, they are insured by the FDIC up to $250,000 per owner, per institution. So again, certificates of deposit. That's how banks fund their short-term capital needs by lengthening the maturity of their deposits. They're fixed in term, anywhere from one month to a year or more. The shortest maturity CDs are part of the money market, next up the commercial paper market. That's about 1.2 trillion.
Speaker 1:What is commercial paper? Well, commercial paper is just a fancy word for very short-term unsecured debt issued by corporations to fund their short-term gaps in cashflow. I'll repeat that and I'll do that a lot in this podcast. Let's just repeat things more slowly and sometimes just take them apart. So, commercial paper, short-term unsecured debt, unsecured debt what does that mean? Well, it means that the company that's borrowing money from you doesn't pledge anything but their promise to pay you back unsecured debt. Whose short-term needs are these satisfying? These are firms, corporations. Corporations issue commercial paper. Why do they do that? Well, like the Treasury Bill corporations, this is not how a corporation funds its building a new factory or expanding a line of business. Its long-term capital needs are not funded with commercial paper. This is for short-term needs like gaps in cashflow. I know that I earn revenue on selling my product over the course of the year, but my payments, my expenses, may be a little more tricky to match.
Speaker 1:Commercial paper maturities range up to 270 days, so not quite a full year, but usually they're issued with maturities under two months. Commercial paper instruments are issued in denominations of $100,000, so that's quite large. And usually when a corporation issues commercial paper, they back it up by a bank line of credit. That's just because the average investor in commercial paper is just taking the company's promise to pay them back and a company can enter into some distress. So what usually a company will do is they'll have a bank line of credit that they can draw against and that line of credit is allocated specifically to fund commercial paper in the event that the company defaults.
Speaker 1:["money Market"]. Last up in the money market are repos. That's another big one $5.2 trillion of short-term funding. What is a repo? Well, it's a form of very secure short-term financing, usually for securities dealers, banks or insurance companies who need to maintain treasuries as a part of their regulatory capital or they own them as a part of making markets. But they need short-term cash. Let's do that again. Let's just take it apart Very short-term. So when we're talking about repos, these are all months in length, maybe even days in length. They're financing for securities dealers, banks or insurance companies. So we could lump that all together and say for firms.
Speaker 1:Securities dealers are types of firms that deal in securities. So think of any of the nation's largest brokerage houses, and you're thinking about a security dealer. What do they do? Well, they hold some securities as inventory and they sell and buy on behalf of their clients, and so they sometimes have to maintain treasuries as part of the way in which they make markets. How about banks? Well, banks, like we talked about before, they're regulated, and banks regulators typically require that they hold some amount of their capital in the form of treasuries, but from time to time, banks need very short-term funding that they don't get from deposits. How about insurance companies? Likewise, insurance companies are also regulated, and a lot of insurance company regulators require that those companies maintain treasuries as a part of their capital. All of them have in common the fact that they are holding these securities as a regular part of their business, either because it's what their business is or because the regulators require them to do it.
Speaker 1:But from time to time, they need cash in the short term, maybe just overnight, maybe for a few days. It's usually overnight and it's secured. So what does that mean? Well, it means you don't just have the firm's promise to pay you back. Instead, there's something allocated to protect your loan in the event that they default.
Speaker 1:The repo is a form of giving secured financing on a very short term. So how does it work? Let's walk through a simple step transaction. Then, usually a security dealer, bank or insurance company is in need of overnight financing and so they sell a treasury Might be a treasury bond, might be a treasury note, might be a treasury bill. They're going to sell a treasury but they sell it with an agreement to repurchase it. Ergo the term repo. It doesn't mean repo like repossess, it means repo like repurchase. So they sell the treasury to somebody with a promise to repurchase it the next day at a slightly higher price.
Speaker 1:Well, let's think about that for a minute. So if I've got a treasury that's worth 100X, I need a little bit of cash. I suppose I could sell it for 100X and now I have my cash, I could borrow in the commercial paper market Not going to be secured, and I'm going to have to pay some interest. One possibility is I could enter into a repo with that treasury and if I sell you the treasury for 100X and I buy it back tomorrow for 101X, your interest was 1X. That's what you earned overnight on the repo.
Speaker 1:The repo seller is what we would typically call the borrower. So the bank, the security dealer, the insurance company that's borrowing money overnight, is selling the repo, and the higher price represents interest on the loan. The reponed buyer is a lender. Right, you're lending them the money overnight. You expect to get your money back. What if they don't pay you back? Well, the treasury is your collateral. If they don't pay you back tomorrow, you get to keep the treasury, and so that's your security at the end of the day, which is why I use the phrase.
Speaker 1:They're secured forms of short-term financing, because treasuries are as close to risk-free as we can get. It's generally assumed that this is the safest form of overnight lending. So who can the lenders be? We talked about who the borrowers are. They're securities dealers, banks and insurance companies. Who might the lenders be? Who goes out there lending money to those three firms overnight? Well, it could be corporate treasuries. A company has a bunch of cash and they don't need it overnight. They need it tomorrow, but they don't need it overnight, and so they can earn a little bit of interest, believe it or not, banks some banks that don't need to borrow on the repo market might be in a position of having excess cash and they can lend on the repo market so they can sell. So large investors with excess cash, think big endowments foundations, think families with lots and lots of wealth. They may need the money this week, so they're not going to invest it in long-term securities, they need it in just a few days. But wouldn't it be nice to earn a little bit of interest? And there's a ready market out there which can satisfy the short-term capital needs.
Speaker 1:It's also the case that the Federal Reserve Bank uses repos as a way to engage in its open market operations to regulate the money supply. Now, that's a big concept and it's a little outside the scope of what we talk about here, though we will talk about it in a lot more detail in our core episode on bonds. But for now, understand that the Federal Reserve Bank tries to regulate the amount of money that's in the economy, and one way that they do that is if they want to inject money into our economy, they will buy repos overnight, and when they want to remove money from the system, they'll sell repos overnight. And remember, buying a repo means you're the lender and selling the repo means you're the borrower. Repos typically don't trade, they are typically held as a security. All right. So the money market as I mentioned, we've got Treasury bills, we've got commercial paper, we've got certificates of deposit and we've got repos.
Speaker 1:I mentioned the Federal Reserve and the fact that they use the money market to engage in their open market operations, and so I thought it might be a good moment now just to introduce the concept of something called the Fed funds rate. And the reason why I think it's a good thing to introduce now is because the Fed funds rate has an awful lot to do with what it costs to borrow money in the money market, or what, to put another way, what one earns in the money market. So let's just talk a little bit about and we read about it in the paper, I should say, all the time so let's just talk a little bit about what Fed funds means. So the Fed funds rate is one of the mechanisms by which the Federal Reserve banks can lend money to each other in the short term.
Speaker 1:Every bank is required to maintain reserves with the Federal Reserve and, as you might imagine, some banks and they earn interest on that. That's a fairly new development, but it's an important development. They earn interest on that. Well, what interest do they earn? They earn the Fed funds rate. And so how does it work.
Speaker 1:Well, let's say a bank has excess reserves at the Fed, more than they really need. They have it there because they have excess reserves and it's a perfectly safe place to keep it. There are probably other banks who don't have enough reserves, and so, in order to make the banking system more flexible, the Federal Reserve designed the Fed funds system, where some banks that need reserves can borrow them overnight until they've got sufficient deposits to put their reserves back in order. And from whom do they borrow? They borrow from banks with higher reserves than they need. So all banks are required to keep a certain amount of cash on deposit with the Fed, and some banks will have excess. Other banks will have less. Who has excess? Well, mostly the banks that have excess are going to be the smaller or regional banks. The smaller regional banks will typically not lend quite as much out relative to their deposits, and so they'll typically have excess reserves at the Fed. The big money center banks think of any headline bank when you walk down the street the big money center banks usually lend out more relative to their deposits, and so they typically have less held on reserve at the Fed, and they typically need to borrow overnight.
Speaker 1:You can't trade in Fed funds. It's not really part of the money market in the conventional sense of it, but it does fit in the notion of money market, because here we have another short term capital funding mechanism, but exclusively for banks and exclusively for use in keeping their reserves on target. Well, so what we saw is that most of the money market securities that we looked at trade in denominations that are way too large for the average investor to access. Yeah, you can buy T-bills for $100. That's true, but most of the other stuff is pretty large. And so, in around the 1970s, there was a pretty significant innovation in the money market, and that innovation was money market funds. So what's a money market fund? By the way, I should tell you, money market funds today are about $5.7 trillion. That means that of the $14 trillion in the money markets is that right? Did I get that number right? This is what happens when you sort of do it from your head, isn't it? Yeah, I had it about right. So about $14 trillion in the money market. So of that $14 trillion, about $5.7, so almost $6 trillion is owned by money market funds. Well, who are money market funds? Well, as I say, most money market securities trade in denominations way too large for the average investor to access. So what money market funds do is they pool investor capital. You set up a fund and depositors can bring you their cash to invest in money market instruments. I might not have enough. You might not have enough individually, but together in the form of a money market fund, the fund will have enough to buy money market instruments.
Speaker 1:Money market funds are regulated by the Securities and Exchange Commission and there are certain requirements for money market funds. They're required to hold only short-term debt instruments, that is to say nothing longer than three months in maturity, and on average they hold maturities of a little more than one month, so very, very short-term. It can only be of the highest quality. Money market funds can only own Treasuries or AAA-rated CDs, commercial paper and repos only the highest quality. And these money market funds are so liquid that typically investors can write checks on them. The money market fund is so liquid that they can write checks on them. Many of you listening will probably have a money market fund and you just don't even know it. Many bank deposit accounts are just called money market deposit accounts and really a money market deposit account is a money market fund. It just doesn't look like it because you can write checks on it.
Speaker 1:Historically, money market fund shares were redeemable at exactly $1 per share. Regardless of whether the value of all the assets inside the fund divided by the number of shares equal to $1, they traded at $1. And so this is historical. It's not how it works today, and so fund managers could every day. Let's say, at the end of a business day, you found that your money market funds instruments inside the fund were worth $100x, but your shares at $1 or share were worth $105x. So you're short. So the fund manager would inject $5x into the fund. Now the fund has assets worth 105. The shares are worth 105. And then tomorrow we'll see if we're short or maybe we have a little too much. And in the opposite case, if you found that the fund's assets were 105 and the shares added up altogether were worth 100, you would take five out, always to keep the price at exactly $1 per share.
Speaker 1:As we'll do throughout this podcast, we'll take a look now at how this innovation, in this case money market funds, has produced some unintended consequences, and we'll do so by looking at an historical case study and the case study that I'd like to choose to illustrate some of the unforeseen circumstances of money market funds is going to be the 2008 liquidity crisis. One thing I should note you know, for most of us, we think of the 2008 global financial crisis as a as a single event, as a single cataclysmic event. I'd like to argue that it really was three different events, which we'll talk about serially in these core episodes, but the first one that I think it was was a liquidity crisis. So let's have a look at a case study to understand not only the benefits of the innovation of money market funds, some of the unintended consequences, and then how we we corrected for them. So what's the story Money market funds had up to 2008, never what's called broke the buck, meaning they never were redeemed at less than the $1 share price Never, never happened. And that created a lot of confidence in the use of money market funds and, as I say, vastly increased the capital available to firms and governments to borrow on a short term basis.
Speaker 1:On September 15, 2008, lehman Brothers, a large US bank and securities firm, filed for bankruptcy. Lehman Brothers, like a lot of big banks and securities firms, had issued quite a lot of commercial paper, had quite a lot of repos that they sold and so and they were very, very highly rated and so they found themselves in the portfolios of money market investors, but also in a lot of money market funds. Several large money market funds therefore owned commercial paper from Lehman, repos from Lehman, and they were. They were faced with very large losses in Lehman's bankruptcy. Remember, commercial paper is not secured. You're just taking their promise that they're going to pay you back, and when Lehman declared bankruptcy, the likelihood that a commercial paper owner is going to get paid back is very slight. You might remember I also mentioned that a lot of banks have lines of credit to back up their commercial paper. Lehman Brothers' rating was so good that they didn't think they needed to do that, and so there wasn't that line of credit. So September 15, lehman declares bankruptcy.
Speaker 1:Lots of large money market funds that invested in Lehman commercial paper are experiencing big losses. September 16, the next day, the oldest money market fund, called the Reserve Primary Fund, broke the buck. Its net assets, that is, the value of the assets inside the money market fund, were 97 cents per share, and, remember, it always traded at a dollar per share, and so when people tried to redeem their shares from Reserve Primary Fund Reserve Primary Fund broke the buck. They did not give them a dollar, they gave them 97 cents. So let's pause for a second there. So the kernel of a crisis here is I gave a dollar in short-term financing and I got back 97 cents. Well, that's a 3% loss. That's pretty serious, but it isn't like we might fantasize or imagine the situation to be that it's massive losses. It fell to 97 cents, but what happened? It sparked a massive panic. Money market investors all across the US and the globe if you invest in US money markets all began redeeming from money market funds all of them, and where several additional money market funds broke the buck, not just Reserve Primary. When I say broke the buck again just to remind you, that means when you redeem, you don't get a dollar, you get 97 cents or 96 cents.
Speaker 1:A lot of money market funds didn't break the buck. A notable example was my old employer, jp Morgan. But the only way they were able to do that is that JP Morgan had a big enough balance sheet that they could add money to their money market funds to make sure that each share could be redeemed at a dollar, but it wasn't going to last very long. Jp Morgan couldn't fund its money market funds, others couldn't fund their money market funds indefinitely and we had a full-blown, bona fide panic.
Speaker 1:So, fearing further redemptions and therefore further distress, the surviving money market funds stopped buying commercial paper and repos. They just stopped. They couldn't afford to because Lehman Brothers had caused people to panic about the value of commercial paper and the value of repos. And if nobody thought that they had confidence in those values, you might as well not own them. So what's the money market fund going to own? T-bills? Essentially may be certificates of deposit, but of course commercial paper and repos are not just some ephemeral thing that exists in the mind of an academic. Companies rely on commercial paper to just pay their payroll. Medium-sized companies fund the sales of goods to further down the line using commercial paper. So, throughout the economy, firms that rely on the commercial paper market, banks that rely on the repo market to fund their short-term expenditures like buying inventory or paying salaries, suddenly had no way to do that. None at all. So this was threatening to be a major problem, not just in the money market, but this was threatening to be a major problem in the economy, because if firms stopped buying inventory, stopped paying salaries, you would have a full-blown economic depression.
Speaker 1:So to stem the crisis, what happened? To stem the crisis, the Treasury needed to figure out a way to reopen short-term financing. They had to reopen the money market somehow, and the way that they did it is the Treasury announced that it would ensure anyone participating in a money market fund, that is say, any investor in a money market fund, would be insured at $1 per share. The money market funds had to meet certain requirements. They had to qualify a set of rules announced by the Treasury. The Treasury didn't want people to withdraw money from banks and put them in money market funds, because then the Treasury would be playing whack-a-mole it would cure the money market crisis, but it would create a banking crisis so as not to promote those flows. The only shares that were insured when the Treasury announced this insurance scheme were those who already owned money market funds.
Speaker 1:On September 19th To remind you of the timeline September 15th Lehman declares bankruptcy. September 16th, the Federal Reserve Primary Fund breaks the buck. September 19th, if you own shares in a money market fund, the Treasury would ensure those shares at $1 a share, and the program was limited in time. This was September 2008, and it would terminate in 2009. And it worked. It stabilized the money market. The money market did not close firms, governments could still access short-term financing. It was worse than it was before the crisis, but it was not closed. It was open and it was available. But it came at a tremendous risk. It's estimated that if the economy had gone into a tailspin, the Treasury would have been on the hook for about $3 trillion. That would have been an enormous, enormous liability. So it came at a pretty significant cost and it came at a cost that probably made sense, but at the time we all know it made sense. But that's because history is contingency.
Speaker 1:In 2014, the Securities and Exchange Commission announced a set of reforms to make money market funds less likely to experience the kind of crisis that it experienced in 2008. The first thing it did was it removed the so-called valuation exemption, that is to say, it removed the rule that allowed funds to trade always at $1 a share, even if that was not the value of the assets underneath, and now required that money market funds shares float, and that means simply their worth of proportion, a share of what the total value of the fund is worth. Money market funds were authorized to impose a liquidity fee if the underlying securities were to become problematic or illiquid, as happened in 2008. And funds were authorized to suspend redemptions temporarily if the value of the assets in the money market fund fell by more than 30%. And lastly, the SEC rule increased the required diversification and stress testing of funds to make them more less likely, I should say, to own any one type of instrument more than another, and mandated that they maintain 10% ready liquidity, ie cash or T-bills always at 10%. And so we see that in the case of the money market, providing it's a good purpose, we can understand its purpose short-term capital funding for firms and governments.
Speaker 1:The money market funds very interesting innovation that massively increased the amount of capital available to firms and governments to borrow short-term. But no one really quite considered the risk of something like the 2008 liquidity crisis. The money market still functions beautifully. Money market funds still function beautifully. We had to change some of the rules to make them more flexible and, as we'll see again and again on this podcast, that is the true nature of capital market. Innovation is constantly changing and adapting to risks that we didn't necessarily contemplate. That's it for money markets. Look forward to seeing you on our next core episode, where we talk about the first of the long-term capital markets bonds Until then. Thanks for listening. You've been listening to Not Another Investment Podcast hosted by me, edward Finley. You can find research links and charts at NotAnotherInvestmentPodcastcom. And don't forget to subscribe and leave a review of the podcast. Thanks for listening.
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