How The Treasury Decides Where To Borrow | Steve Hou on Maturity Issuance Policies of U.S. Treasury and Equity Index Construction

Monetary Matters with Jack Farley

Steve Hou, Researcher at Bloomberg Indices, joins Monetary Matters to share his work on Treasury Issuance patterns and equity index construction. Hou explains that “the supply effect” (i.e. the degree to which issuance of long-term bonds rises bond yields is related to stock/bond correlation). He shares several findings from his work on indices related to pricing power, research and development (R&D), and other factors, and at the end he offers his macro views on bond yields and the increasingly concentrated stock market. Recorded on January 7, 2025.

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Chapter 1 of Steve’s dissertation (“When is the supply effect large in the government bond market?”): https://finance.unibocconi.eu/sites/default/files/files/media/attachments/SteveHou_JMP20180115111812.pdf

Steve’s work on the innovation factor (R&D): https://t.co/VSSpiUExWL

Steve’s work on pricing power: https://www.bloomberg.com/professional/insights/financial-services/cracking-the-code-of-pricing-power/

Work on Analyst ratings upgrades: https://www.bloomberg.com/professional/insights/trading/analyst-ratings-improvers-a-bet-on-turnaround-companies/