Reminiscences of credit operators

The Sicilian Expedition

In this episode, Zoltan sits down again with macro strategist Martin Tixier to unpack a month full of major shifts across global markets. From rising geopolitical tensions and energy constraints to cracks forming in credit markets, the discussion explores whether we are entering a new phase of the cycle.Martin draws parallels to historical events like the Sicilian Expedition to frame today’s geopolitical and economic risks, while both speakers dive into the real implications for inflation, liquidity, and asset prices. They also explore what’s happening beneath the surface in private credit, why certain parts of the market are starting to show stress, and whether current valuations—especially in tech and AI—are sustainable.On the real estate side, Zoltan shares insights from across Europe, highlighting where opportunities still exist despite a prolonged downturn, and which regions and sectors are better positioned going forward. He also sees value in US multifamily market right now. The conversation also covers:The risk of a second wave of inflationWhy credit markets may be turningLiquidity signals from Bitcoin and IPO activityThe refinancing wall ahead in real estate and creditInvestment positioning in a late-cycle environmentThis is a deep-dive discussion for investors trying to navigate an increasingly complex macro landscape.

Crossing the Rubicon

In 49 BC, Julius Caesar crossed the Rubicon, a decision that made the fall of the Roman Republic inevitable. Today, the global financial system might face its own "point of no return". The "Buy the Dip" era is meeting a wall of reality. In this episode, Martin Tixier and Zoltan Szelyes breaks down three structural shifts that the market is dangerously ignoring:1. The Strait of Hormuz: A $6 Trillion ThreatWe are currently "Crossing the Rubicon" in global energy supply. With a 98% correlation between energy and world GDP, a prolonged standoff in the Strait of Hormuz isn't just a headline—it’s a potential 5-6% contraction of the global economy. Why is the Nasdaq hitting all-time highs while a supply shock of this magnitude looms?2. The Luxury Pivot: Bags vs. BedroomsThe "Birkin Bag Bubble" hasn't just leaked—it has burst. We discuss the death of the secondary market premium for physical luxury goods and the massive structural shift toward "Luxury Experiences." High-net-worth capital is rotating out of Hermès and Gucci and into luxury hospitality and boutique hotels. If you’re holding discretionary retail, you need to hear this. Hospitality can benefit. 3. Japan’s: The choice between two bed options Japan is the world’s largest creditor, and the "Rising Sun" is setting. With Japanese 10-year yields jumping 60+ basis points, the Bank of Japan is trapped in a "catch me if you can" game with German Bunds. They have two choices: let the bond market crash or sacrifice the Yen. We explore the massive repatriation risk as Japane

Reminiscences of credit operators

In this deep dive, experts Zoltan Szelyes, CFA, CAIA and Martin Tixier discuss why today’s financial landscape mirrors the speculative "casino-like" environment of the 1920s. Referencing the classic Reminiscences of a Stock Operator, they explore how modern betting platforms and high-leverage trading are creating a fragile market structure similar to the era of Jesse Livermore.The Private Credit Crisis and Fund GatingA primary focus of the discussion is the "unmitigated disaster" currently unfolding in private credit markets. Key takeaways include:Liquidity Traps: Why major funds are "gating" (blocking redemptions), specifically in the real estate and private lending sectors.Lack of Price Discovery: Unlike the 2008 financial crisis, today’s illiquid assets lack real-time CDS (Credit Default Swap) indicators, making it harder for investors to see the "rot" until it's too late.The Credit Cycle Turn: Outflows in high-yield ETFs (like HYG) are serving as a leading indicator for a broader stock market correction.Geopolitical Shocks: The Iran FactorThe "Rogue Wave" analogy—a rare, catastrophic event that defies standard risk models—is used to describe the convergence of the credit downturn with the conflict in Iran. This exogenous shock to energy supplies is driving a stagflationary environment where traditional safe havens are failing.Portfolio Protection Strategies for 2026With the traditional 60/40 portfolio struggling as stock-bond correlations hit 1.0, the experts suggest several defensive investing tactics:Capital Preservation: Shifting focus from capital appreciation to raising cash levels and shortening duration.De-correlated Assets: Exploring Catastrophe Bonds (Cat Bonds) and international diversification in commodity-rich markets like Brazil.Inflation-Linked Real Estate: Investing in short-dated cash flow assets such as student housing, multifamily rentals, and hospitality to hedge against rising CPI.Avoiding Long Duration: Why technology stocks and long-term Treasuries are particularly vulnerable to current bond volatility (the MOVE index).Conclusion: Playing Defense in Treacherous Waters

Blowback: Risks of collateral damage

In this episode, Zoltan Szelyes, founder of Macro Real Estate sits down with global macro strategist Martin Tixier to unpack the latest geopolitical shocks and their far-reaching impact on financial markets, supply chains, and credit conditions.A "Blowback" is defined as the unintended consequences and unwanted side-effects of a covert operation. It is also the title of Martin's latest market commentary which we discuss here critically. Markets are facing the risks of unintended consequences of US and Israel's special military operation. They discuss the escalating conflict in the Gulf, including attacks involving Iran, and how these events are triggering major disruptions across energy markets—particularly in LNG, jet fuel, and refined products. Martin explains why the damage may already be irreversible in the short term, with infrastructure shutdowns likely to constrain global supply for months.The conversation explores second-order effects such as rising transportation costs, shipping disruptions, and inflationary pressures spreading through industries like agriculture, semiconductors, and construction. Zoltan also outlines three potential macro scenarios—from a short-lived conflict to a prolonged crisis reminiscent of the 1970s secondary oil shock.Shifting to markets, the discussion highlights early warning signs in credit—especially weakness in high-yield bonds and growing risks in private credit. Martin warns of contagion effects, reduced transparency, and parallels to pre-2008 conditions.They also examine winners and losers, noting how Southern Europe’s tourism sector may benefit from shifting travel patterns, while regions like Dubai face mounting uncertainty.The episode concludes with practical investment insights, emphasizing a more defensive strategy: rotating toward investment-grade credit, reducing duration, and preparing for continued volatility in bond markets.

AI: Field of dreams (discussion with Martin Tixier)

Following the Citrini research we discuss - Impact of AI on software companies - War between software and hardware in AI - Update on Palladium and disruption of the electric vehicles in Europe - GFC vibes and the fallout of private credit. Risks and opportunities for investors