I think the August 10th FOMC meeting will go down as one of the top 10 mistakes in Fed history! The move to make Treasury replacements of MBS pay downs was one of the poorest signaling moves I can ever remember. It is still unclear to me what they were trying to...
US Corporates, US Banks and most foreign institutions are borrowing dollars at rates that are many hundreds of basis points lower than they were pre-crisis. There is however one funding rate that remains unchanged throughout this period. I highlighted it in the August...
Suppose the Congress controlled the production of all the lemons in US. Then assume the Federal Reserve decided that it was going to use its balance sheet to buy lemons as a means of adding liquidity into the market when times were tough. While the government ramped...
I constantly read how things are more correlated than ever - risk on/risk off is the usual way commentators describe a typical trading day. I want to take a strong objection to this statement. I think things are about as uncorrelated as I can ever remember! Over the...
Yesterday’s “Stirring the Pot” commentary created what I could only describe as a boil over effect! Based on the comments I received yesterday, one thing I can say for sure is that there are a lot of angry folks out there who are not interested in seeing their 6%...
Yesterday’s “Stirring the Pot” commentary created what I could only describe as a boil over effect! Based on the comments I received yesterday, one thing I can say for sure is that there are a lot of angry folks out there who are not interested in seeing their 6% coupons taken away from them by […]
