Derivatives

Spitballing In German

By |2019-06-17T18:31:03-04:00June 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, [...]

‘Bond Trading’ Exodus, The Global Economy’s Q4 Landmine

By |2019-04-05T17:42:38-04:00April 5th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It isn’t just US or European banks which are shrinking. The nature of this post-August 9, 2007, world is just that – global. Sure, there are regulations which have made investment banking more expensive. But there isn’t a rule or law that Wall Street (really Lombard Street) wouldn’t “discover” a way to circumvent it if [...]

China, Brazil, Nightmare Swaps, and More About December (and what it may mean)

By |2019-01-23T12:32:21-05:00January 23rd, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Central bankers will often tell you exactly what you want to know, at least when it comes to their intentions. You can first begin by reading Milton Friedman and Anna Schwartz’s 1963 monetary bible A Monetary History. It’s all in there. From it, central banks all over the world have devised technical schemes intended to [...]