Repo Archive

Goldman- Excess Reserves Irrelevant and the FED does not need to execute Reverse Repos with Non-Primary Dealers

[Skip to the end] Hopefully, when Goldman talks, people listen: Clarification from author Franesco Cafagna: Views expressed in this piece are his own and are not necessarily reflect the view of Goldman Sachs 1. Do excess reserves really matter and does the FED really need to drain them? The short answer is: ...Read More

ECB 1 year term repo

[Skip to the end] This should bring down the term structure of rates at least out to one year, especially if the program is ongoing at this fixed rate. And, operationally, it’s a similarly simple matter to set ‘risk free’ rates out the entire curve. So, for example, bringing down rates out ...Read More

Fed Repo Facility

[Skip to the end] It is something they want but seems there is no viable plan yet. It is harder than it sounds and what they do come up with if short of a government guaranteed market will have similar risks. The ‘answer’ is the repo markets add no value to the ...Read More

AVM Repo Commentary

[Skip to the end] Good report, thanks, and another example of blood flowing around the clot. Scorecard: Financial sector in a shambles A2 GDP now forecast at 3% or more helped by tax cuts/rebates So as the financial sector worsens the government can cut taxes to sustain output and growth. Seems like ...Read More

Re: Fed study on TAF

[Skip to the end] >     >    On Tue, Jul 29, 2008 at 4:05 AM, Andrea wrote: >     >    In case you haven’t seen this yet: A Fed study that finds that >    Taf has lowered Libor. >     >    http://www.newyorkfed.org/research/staff_reports/sr335.html >     >     right, thanks, as if they needed to fund a study to figure that out! It’s ...Read More

Re: US Libor GC Spreads comment

(an interoffice email) Good report, thanks! On Jan 4, 2008 10:41 AM, Pat Doyle wrote: > > > > Pre- August 2007 GC US Treasury’s repo averaged Libor less 17 across the > curve. In early August and again in early December the spread between GC > and Libor hit it’s wides ...Read More

Repo Mkts and TAF

(an interoffice email) On 12/21/07, Pat Doyle wrote: > > > > It is becoming apparent that the funding pressures for year end are ebbing. > The ease in pressure has a lot to do with the TAF and coordinated CBK > interventions. The Fed is getting the cash to the people ...Read More

Fed finally gets it?

The Fed was finally successful in cutting the fed funds/libor spread with a glorified 28 day repo, after failing to narrow the spread with 100 bp of rate cuts. Narrowing the ff/libor spread ‘automatically’ lowers various libor based funding rates, probably including jumbo mtg rates, which have been a concern of the ...Read More

MBS Repo Markets

Thanks Pat, good report. Yes, the Fed knows the assets won’t go away, and all they want is to see funding spreads narrow to help insure the banks aren’t forced to sell due to funding issues and thereby distort prices beyond prudent repricing of risk. TAF auction (20bb) results announcement will come ...Read More