A brief introduction to the Masterclass on U.S. Dollar Liquidity

1. I am very pleased to collaborate with Wallstreetcn to organize a master class on US dollar liquidity. The class will be held on Sunday, April 26, in Shanghai, roughly from morning to evening. Please refer to the poster at the end of the article for detailed course content and registration information.

2. To be honest, I have some concerns about this course. The reason is that this course is an upgraded and expanded version of the training I originally gave to young employees (mainly in research and asset allocation departments) at the State Administration of Foreign Exchange. Although I have tried to simplify the overall content, objectively speaking, it is still rather specialized and will cover a large amount of basic knowledge and frontier academic research on the microstructure and regulatory framework of US currency, central banks, and banking markets. Therefore, it is more suitable for professionals in global macro research or policy research, and less so for individual investors.

3. The entire course places great emphasis on concepts, facts, mechanisms, and understanding, and very little on practical operations or strategies.

If you want to immediately apply the content to investment decisions, please think twice before registering. For those who are uncertain whether this course suits them, please scan the course outline. If you are not interested in or don’t understand most of the topics, please think twice before signing up.

4. The objective is to rigorously and thoroughly grasp the concept and analytical framework of “US dollar liquidity” based on cutting-edge academic literature and past market cases. The specific goals include:

1) Familiarize with the T-account framework (the most basic tool for liquidity analysis) and understand the fundamental concepts of monetary banking from the T-account perspective

2) Understand the operational mechanism of the Federal Reserve and the US banking system (e.g., how the Fed adjusts the policy rate, micro implications of balance sheet runoff endpoint)

3) Get to know onshore and offshore US dollar markets (repo market, FX swap market, etc.), as well as a basket of money market liquidity indicators (i.e., narrow US dollar liquidity)

4) Understand broad US dollar liquidity indicators and their investment implications

5. The course lasts quite a long time; teaching might use a blackboard (not just slides). It is best to bring a pen and paper notebook. Please ensure you are well rested the day before as the course intensity is not low.

There are risks of not being able to follow the lecture; register with caution!