Author Topic: The NY Fed spends $53 billion to rescue the overnight lending market  (Read 3621 times)

DooDiligence

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Re: The NY Fed spends $53 billion to rescue the overnight lending market
« Reply #20 on: September 20, 2019, 03:29:46 AM »

'sustain the expansion' - Powell



When it comes to US equity, in the long run, optimism pays and pessimism... (can't rhyme for the life of me)

schmessisism?
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scorpioncapital

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Re: The NY Fed spends $53 billion to rescue the overnight lending market
« Reply #21 on: September 20, 2019, 04:13:27 AM »
Are they losing control of interest rates ?
Either ib margin rate table is wrong or ?

USD borrow rate 3.25 percent (fed rate 1.75 to 2)
Cad borrow rate 1.99 percent (fed rate 1.75)


meiroy

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Re: The NY Fed spends $53 billion to rescue the overnight lending market
« Reply #22 on: September 20, 2019, 05:46:43 AM »

'sustain the expansion' - Powell



When it comes to US equity, in the long run, optimism pays and pessimism... (can't rhyme for the life of me)

schmessisism?

Why not...

https://blogs.uoregon.edu/timduyfedwatch/2019/09/20/what-the-fed-did-right-and-what-the-fed-did-wrong/




SharperDingaan

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Re: The NY Fed spends $53 billion to rescue the overnight lending market
« Reply #23 on: September 20, 2019, 07:06:05 AM »
Yield curves have inverted, and suddenly the overnight rate goes to 10% on material volume?
To 5.5x the long-term rate (or more, if the Fed were not intervening!) It wasn't a glitch, and nobody knows (not guess) the cause?

At the basic level  ...
50B+ of debt couldn't roll, because borrowers continually saw no-bid, even as they were continuosly raising their offers.  That doesn't happen, unless you're in an extremely toxic environment. Maybe because those whose notes were maturing, deliberately chose not to buy new notes? and if so, why?

SD

There has to be a sizeable part of the market that is being frozen out of the market, and word is leaking out. The repeated and growing daily intervention; would seem to suggest that the Feds initial 50B injection is having to be rolled, AND that they are having to roll additional maturities as well. Creditors are taking their money out.

The last time we saw something like this was when the major I-banks collapsed.
Big numbers, and big impacts that further magnified based on degree of market connectedness. This smells like DSIB/GSIBs.
Brexit is coming up in 41 days, and a hard crash is looking more and more certain.

Are global overnight funding flows getting distorted as the Oct-31 date gets closer?

SD

« Last Edit: September 20, 2019, 10:35:38 AM by SharperDingaan »

DooDiligence

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wolverine890

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Re: The NY Fed spends $53 billion to rescue the overnight lending market
« Reply #25 on: September 30, 2019, 06:34:00 AM »
https://www.wsj.com/articles/why-were-they-surprised-repo-market-turmoil-tests-new-york-fed-chief-11569777702

“This is really the Fed at its best.”

"The New York Fed said it plans to keep injecting funds through Oct. 10 and has increased the sizes of these injections in recent days."

DooDiligence

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Re: The NY Fed spends $53 billion to rescue the overnight lending market
« Reply #26 on: September 30, 2019, 06:54:28 AM »
https://www.wsj.com/articles/why-were-they-surprised-repo-market-turmoil-tests-new-york-fed-chief-11569777702

“This is really the Fed at its best.”

"The New York Fed said it plans to keep injecting funds through Oct. 10 and has increased the sizes of these injections in recent days."

Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish