Looking at UK repo trends
We’ve already brought you one collateral crunchy statistic from the Bank of England’s latest monetary and finanical statistics. But here’s another interesting...
US MMFs versus the Eurozone, Part 2
In the first installment of US money market funds versus the eurozone, the funds were seen fleeing the continent as quickly as possible, leaving all sorts of funding chaos in their wake....
Collateral shifts in the eurozone
We all know the story in the public repo market. The European Central Bank has provided three years worth of funding against the widest range of collateral it has ever dared to accept,...
A-A-A… staying alive, staying alive
How significant is the downgrade of France by Standard & Poor’s?According to some commenters, like the WSJ’s Simon Nixon, not that significant.But one market...
More on the collateral crunch
From the ECB’s Mario Draghi on Thursday (our emphasis):RTRS-ECB’S DRAGHI SAYS REDUCING LENDING WOULD BE THE WORST OPTION OF ALL 11:50 15Dec11 RTRS-ECB’S...
Collateral crunch, commodity financing edition
Look at any financial market long enough and it starts to resemble the repo market.Conventional sales and buybacks. Islamic finance. Covered bonds. Commodity contango or backwardation trades....
Make your own (collateralised) gold standard
We know the gold bug/Austrian case.When the United States broke away from the gold standard in the 1970s it allowed for unchecked credit creation, beyond what could realistically...
Nomura on Draghi’s failure to address the collateral problem
There are a growing number of voices suggesting that much of the Eurozone funding crisis could be simmered by addressing one of its most identifiable symptoms. The quality collateral...
Shadow banking and the seven collateral miners
In the words of Goldman Doc, Morgan Grumpy, JP Happy, Bank of Sleepy, Barclays Bashful, Sneezy Citi, and Dopey Deutsche:We dig dig dig dig dig dig dig from early morn till night...
Effectively controlling assets, MF Global edition
MF Global lost ‘effective control’ of its sovereign bond assets. This gifted the broker some rather favourable accounting treatment. The broker’s clients, meanwhile,...
