Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Crypto Fights for Life as CBDC Interest Raises Questions About Bitcoin

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

<p>There has been much debate over the usefulness and viability of cryptocurrencies. Notwithstanding our opinion on the topic, the current cryptocurrency ecosystem has an Achilles Heel of Lehman Crisis proportions and it’s called Tether.</p><p>The crisis risk in Crypto-Land is a “this will not end well” story with no obvious trigger. We are not implying that Tethers will crash tomorrow and bring down the entire cryptocurrency complex with it. In fact, FTX has a credit risk derivative product consisting of a short Tether/long USD product. It trades at an effective discount of about 2% a year, meaning that the market isn’t pricing a high level of default risk. However, anyone who becomes involved in Crypto-Land should be aware of the risks posed by offshore stablecoins like Tethers.</p>

There has been much debate over the usefulness and viability of cryptocurrencies. Notwithstanding our opinion on the topic, the current cryptocurrency ecosystem has an Achilles Heel of Lehman Crisis proportions and it’s called Tether.The crisis risk in Crypto-Land is a “this will not end well” story with no obvious trigger. We are not implying that Tethers will crash tomorrow and bring down the entire cryptocurrency complex with it. In fact, FTX has a credit risk derivative product consisting of a short Tether/long USD product. It trades at an effective discount of about 2% a year, meaning that the market isn’t pricing a high level of default risk. However, anyone who becomes involved in Crypto-Land should be aware of the risks posed by offshore stablecoins like Tethers.

A Brewing Lehman Crisis in Crypto-Land