Tag Archives: Markets
Markets
The Fed’s Attempts to Bolster Treasury Market Liquidity
The Fed’s Attempts to Bolster Treasury Market Liquidity
Posted By Jim Bianco
China needs dollars. They have $1 trillion of Treasuries to sell to generate dollars. The Fed does not want this to happen. So the Fed created a new swap line Treasuries as collateral for dollars. ... Read More
Markets
The Dealers Are Offsides and Selling
The Dealers Are Offsides and Selling
Posted By Jim Bianco
The dealers are offsides. They are too exposed to interest rate risk going into a period of lower growth, larger deficits, and potentially more inflation.... Read More
Markets
Detailing Financial Market Stress and Flows
Detailing Financial Market Stress and Flows
Posted By Jim Bianco
Fund outflows are the most extreme ever seen and financial market stress remains.... Read More
Markets
Funding Gaps at Public and Private Pensions
Funding Gaps at Public and Private Pensions
Posted By Greg Blaha
Private pension funds have much smaller funding gaps than their government counterparts.... Read More
Markets
Defined Benefit Plans Continue to Shrink
Defined Benefit Plans Continue to Shrink
Posted By Greg Blaha
Defined benefit plans continue to be replaced by IRAs and defined contribution plans.... Read More
Markets
Breaking Down Debt in the U.S.
Breaking Down Debt in the U.S.
Posted By Greg Blaha
A look at outstanding amounts of Treasuries, corporates, agencies, munis and open market paper.... Read More
Markets
Comparing the Value of Credit in the U.S. to GDP
Comparing the Value of Credit in the U.S. to GDP
Posted By Greg Blaha
The amount of outstanding private credit in the U.S. experienced a brief decline during the financial crisis, but government debt grew throughout the entire period. Both are now at new highs.... Read More
Markets
Forecasts Slowly Responding to Coronavirus
Forecasts Slowly Responding to Coronavirus
Posted By Jim Bianco
The floodgates are open. Look for forecasts for Q2 2020 and the rest of the year to drastically change to some of the most extreme readings ever seen. At this point, these are no more than wild guesses. Take this as a signal that quantitative approaches at fair value are not possible in this environment.... Read More
Markets
Thoughts on the Fed Announcement
Thoughts on the Fed Announcement
Posted By Jim Bianco
It is difficult to find a superlative to describe what the Fed announced this morning. At first blush, it looks like they are nationalizing financial markets, except for equities and high yield.... Read More
Markets
What’s Wrong With the Dealers?
What’s Wrong With the Dealers?
Posted By Jim Bianco
The dealers' balance sheets are full and post-crisis rules are preventing them from expanding. The Fed is trying the drain dealers' balance sheets via QE, allowing more room for dealers to operate. The problem is the markets are repricing for a new post-virus world. When banks are able to make a market, there is only selling. This stops when markets fall enough that the full damage is priced in.... Read More
Markets
The End of the Central Bank Put?
The End of the Central Bank Put?
Posted By Jim Bianco
Central banks fired all their weapons to stop markets from declining, but U.S. stock futures are locked limit down as we write. The central bank "put" no longer works. If risk markets make new lows, regulators and government officials may have no choice but to close the financial markets to prevent chaos and lasting damage.... Read More
Markets
The World Passes China in Infections
The World Passes China in Infections
Posted By Jim Bianco
The latest infection and death counts paint a depressing picture. They help explain the chaos in financial markets.... Read More
Markets
Why No Takers of Fed Liquidity?
Why No Takers of Fed Liquidity?
Posted By Jim Bianco
It looks like the dealers want and need the Fed's liquidity, but too many regulators and rules are keeping them illiquid.... Read More
Markets
The Moment in This Decline Has Arrived
The Moment in This Decline Has Arrived
Posted By Jim Bianco
Friday, the 13th, between 7:45AM ET and 9:00AM ET the Fed will offer the massive sum of $1.175 trillion in liquidity (repo) in an attempt to help dysfunctional financial markets. If it works, and liquidity returns, financial markets should resemble normalcy. If it does not, and continued liquidation and illiquidity remain, the next option might be a temporary closure of financial markets.... Read More