Goldman’s repo “optimizer”
An interesting passage from a recent CreditSights note on Goldman, following a meeting with the bank’s CFO, David Viniar (emphasis ours):Lastly, Goldman explained that...
Do not trust the FRA-OIS spread!
An excellent point from Don Smith at ICAP on Tuesday.If you’ve looked at the eurozone FRA-OIS spread recently and wondered why it is so weirdly stable given that Grexit...
The era of the ‘negative money multiplier’ – Part 2
As we discussed in Part 1 of this post, Manmohan Singh and Peter Stella believe the system is in the grips of a negative money multiplier effect, because banks have been depending...
The era of the ‘negative money multiplier’ – Part 1
Or, why hyperinflationists are wrong. And why everything you were ever taught about the money multiplier is not applicable to the here and now.The following observation comes...
ETFs, unregulated banks in disguise
If one article sums up how ETFs have come to change the market structure of the equity universe, it’s this one from Paul Amery at Index Universe on Thursday.As he recounts,...
De-euroisation chartpalooza
In the recent years, the financial crisis has led to a marked deterioration in European financial integration…You might say that’s a statement of the obvious from...
Money as maturity and asset transformation
Just when you thought no more could be written about collateral, shadow banking and repo, Manmohan Singh and Peter Stella come together to bring us a new paper on the core essence...
Collateral withdrawal symptoms
The Spanish bonds mini-crisis continues this week, so we thought we’d mention an excellent note penned by JPMorgan’s Flows & Liquidity team last week.It touches...
The disappearing Spanish GC repo market
Thanks to Mario Draghi’s double installment of 3-year LTROs this year and last, it’s been a while since we’ve had to worry about dysfunctions in the European repo market....
MMFs, deposit insurance, and regulation in the age of shadow bank runs
Deposit insurance on non-interest bearing accounts — it was in October 2008 that the FDIC started it, through the Transaction Account Guarantee, or TAG.Until we looked a bit more closely,...
ETFs as shadow banking entities
A list of shadow-banking entities, as defined by the European Commssion in its latest green paper on shadow banking:And some more on the role of ETFs in the shadow banking universe:...
US collateral shifts (updated)
Fitch Ratings’ report on repo and shadow banking from February 3 has just been posted on the Fitch Ratings website — available to all who sign up for a login.While...
