collateral transformation

August TIC: Trying To Get Collateral Out of the Shadows

By |2019-10-21T18:08:31-05:00October 21st, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The second most frustrating aspect of trying to analyze global shadow money is how the term “shadow” really applies in this case. It’s not really because banks are being sneaky, desperately maintaining their cover for any number of illicit activities they are regularly accused of undertaking. The money stays in the shadows for the simple [...]

Ticked About TIC: The Accidental Discovery of Perhaps The Big Bottleneck

By |2019-07-17T15:30:38-05:00July 17th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

From October 2000 to July 2001, the Treasury Department conducted a special survey of users of its Treasury International Capital (TIC) data. Nearly two decades ago, it had become apparent (to some) just how important international dollar flows were to the overall economic and financial landscape. And not just those of the United States. TIC [...]

Baoshang Isn’t China’s Lehman, So Why Does April 17 Show Up All Over Global Markets?

By |2019-06-24T16:27:12-05:00June 24th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

One month ago, on May 24, Chinese regulators stunned the world by announcing the first bank restructuring in modern China’s history. Based in Inner Mongolia, Baoshang Bank was seized because of what the PBOC and China Banking and Insurance Regulatory Commission said was “severe credit risk.” Initial reports attempted to link Baoshang’s struggles to financier [...]

Spitballing In German

By |2019-06-17T18:31:03-05:00June 17th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Something just doesn’t smell right. As I’ve pointed out over the past few weeks, bill yields have been falling. The front, the 4-week instrument, has seen its equivalent rate plummet. This is consistent with deep liquidity problems as well as looming rate cuts (the two do go hand-in-hand). Over the past two session, including today, [...]

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