Catastrophe in the Name: ETF, Trades, AI

In this episode of the Money Stuff Podcast, Matt Levine and Katie Greifeld discuss the emergence of autocallable ETFs, a structured product that offers high yields but carries the risk of significant losses during market crashes. They explore the mechanics of these ETFs, comparing them to buffer ETFs and catastrophe bond ETFs, and debate their appeal to retail investors. The conversation then shifts to JPMorgan's efforts to establish a private-credit trading desk and the challenges it faces due to the illiquidity of private credit loans and the reluctance of private equity sponsors to allow trading. Finally, they touch on the intense competition for AI talent, with companies like Meta offering exorbitant salaries to attract top researchers, and contrast Meta's approach to AI with that of other tech giants like Apple and Microsoft.