It looks like the dealers want and need the Fed's liquidity, but too many regulators and rules are keeping them illiquid.... Read More
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
To-date, 354 companies in the S&P 500 have mentioned the words 'coronavirus' or 'COVID-19' in their quarterly earnings reports, transcripts, presentations, or press releases.... Read More
Cable news channels' coverage of the coronavirus has picked up considerably as the virus spreads in the U.S.... Read More
We offer some tables and graphs to put the markets in perspective.... Read More
The U.S. stock market continues to exhibit record volatility. What happens next? The answer depends on how many more near-record days are to come.... Read More
The number of cases of coronavirus surpassed 1,000 in the U.S.... Read More
Yesterday was an epic day in the financial markets by many measures. Does this mark a bottom?... Read More
The latest infection charts, Trump's re-election chances, and the Fed is poised to cut to zero next week.... Read More
Right now daily updates to global infection counts are one of the most important statistics. The virus continues growing exponentially in much of the world.... Read More
Funding strains are developing again. The Fed might have to respond by expanding its "not QE" support for the repo market even more, which would push its balance sheet to even larger levels.... Read More
The Fed cut on fears that the US is about to see massive economic disruption. Given the examples from other countries, this is a reasonable fear.... Read More
Governments and central banks can manage, but not reverse, a shift in markets and the global economy caused by the coronavirus.... Read More
Fed support of the repo market surged to new a record this morning. This was not expected and the initial reasons for the banks' surge in demand are hard to determine.... Read More
As we highlighted last night, the market has priced in a Fed move. How long will the market remain patient in waiting for a cut?... Read More
An update of alternative data sources shows China is still far from resuming normal economic activity.... Read More
The Fed has slowly been reducing its involvement in the overnight and term repo markets, as planned.... Read More
A look at foreign net sales and purchases of U.S. Treasuries, agencies, corporates and equities through December... Read More