"The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money." Alexis de Tocqueville

bantam inc jack duval MFO UHNW New York - Monopoly money image

The new Benjamin?

For the past six months, Modern Monetary Theory (“MMT”) has been making heads explode all over the blogosphere and in the financial press.  Most of the commentary is from ride-or-die free market capitalists shouting about socialism and the End of Days.  Few seem to have taken the time to know

where MMT comes from or appreciate that (spoiler alert) the Federal Reserve has been practicing MMT for 10 years. Beginnings MMT has a precursor in what is known as Chartalism. The word "Chartalism" has its roots in the Latin word "charta" meaning a token or a ticket.  The term was…

Luck is the residue of design - Branch Rickey.

bantam inc jack duval UHNW MFO Manhattan New York - Branch Rickey

Branch Rickey, one of the all-time great "portfolio" managers.

Our biggest holding, Oaktree Capital Group ("OAK"), announced yesterday that it was being acquired by Brookfield Asset Management ("BAM") for $49 per share in cash or 1.077 BAM shares, at the election of the OAK Class A unitholders.  The position was roughly seven percent of our risk asset portfolio

before the announcement. I'm highlighting this investment in order to discuss our investment process and not to brag about a winner (I've had plenty go the other way). Bantam Investment Process We tend to use diversified ETFs or to recreate them ourselves for increased tax efficiency.  (See this post on Custom…

There’s no way the biggest and longest credit expansion in the history of the world ends in a credit whimper.

bantam inc jack duval multi-family office manhattan new york - sharknado

Artist's rendering of debtnado.

As I have written about here, the corporate bond market has become toxic due to increased leverage levels, the record issuance of low-quality bonds, and leveraged loans (this cycle’s poster boy for excess).  All of this has been made possible by the synchronized global central bank policy of lowering interest

rates to zero (or below zero) after the Global Financial Crisis. Chart 1: Ratio of U.S. Corporate Debt to GDP[1] Chart 2: BBB Share of Corporate Debt Outstanding[2] The Coming Credit Event It seems highy likely that such excess will culminate in a credit event that will mark the end…

Now is the time for quality investments, especially in fixed income.

bantam inc jack duval multi-family office ultra high net worth manhattan - bond volatility chart

There's a storm coming, Mr. Wayne. (MOVE US Treasury volatility index is set to rise from decade lows.)

Many investors are unaware that 49 percent of all outstanding investment grade corporate bonds are BBB rated (one notch above junk status), up from 34 percent 10 years ago.  This is a 44 percent increase in a decade, something unprecedented. Chart 1: BBB Bonds as Percent of

Investment Grade Index[1] In fact, the entire corporate bond market (not just investment grade) has become something of a toxic wasteland of junk bonds, leveraged loans (for those firms not strong enough to issue any more junk bonds), and BBB (on-the-cusp-of-junk) rated bonds. Chart 2:  The Corporate Bond Market[2] This shifting of corporate…

Things are starting to break in the markets. Watch this video to see what's next.

bantam inc. jack duval new york manhattan multi-family office - NVDA chart

Hello darkness, my old friend. Chart of Nvidia.

In this video, Bantam CEO Jack Duval takes you through the major markets from a risk managers perspective. Nothing in this video

should be considered investment advice.  You should speak with your advisor.   https://www.youtube.com/watch?v=95eph5Rf7nQ