This episode explores listener questions about various financial topics. The hosts first delve into the inconsistencies in cocoa bean pricing across different exchanges, explaining how quality differences, rather than just supply and demand, influence prices. More significantly, the discussion expands to the broader issue of quality control in commodities futures warehousing, citing examples of nickel and coffee futures where the quality of the underlying commodity is less critical than its role in fulfilling contracts. As the discussion pivots to private credit ETFs, concerns about adverse selection and the potential for fund managers to prioritize their own interests over those of retail investors are addressed. The hosts then analyze the role of regulatory oversight and the importance of a fund manager's reputation in mitigating these risks. Finally, the episode concludes with a listener's question about the availability of unbundled financial advice, highlighting the challenges of a fee-for-service model versus the more common asset-under-management approach, and offering a practical workaround for obtaining cost-effective advice.
