China's Treasury Influence
China holds the largest stock of U.S. treasuries, but its ability to influence the market is more nuanced than commonly perceived. While it could shift its portfolio, such actions would not necessarily lead to a funding crisis for the U.S.; instead, they might prompt the Fed to adjust its policies. The real leverage lies in China's investment choices beyond treasuries, such as agencies and corporate bonds, which can significantly affect credit spreads.In this clip
From this podcast
Odd Lots
This Is What A Trade War With China Would Actually Look Like
Related Questions