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2a7 money market reform

Why 2014? Less (Big) Banks, Fewer ‘Dollars’, No Growth

By |2020-01-15T17:22:55-05:00January 15th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

One of the biggest reasons why I always find the regulations explanation(s) so lacking is because of what is the biggest part of the scientific process. The excuses for problems in global liquidity and the dollar-based banking system in general have run the gamut of regulatory exercises. Who can forget, for one example, 2a7? That was 2016’s preferred explanation for [...]

Searching For 2a7 Comfort In CP And Finding Instead More Confirmation Of The Same ‘Something’

By |2016-09-28T17:10:07-04:00September 28th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

With 2a7 money market reform only a few weeks from its full implementation, there should be by now visible shifts in all the places where such reform will directly impact. Prominent among these money spaces is commercial paper, where the ranks of prime MMF’s that once lent in this market have been reduced in the shift toward government funds. As [...]

Money Market Mess Is NOT Money Market Funds

By |2016-09-07T17:06:29-04:00September 7th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The UST GC repo rate was at or near 50 bps for the ninth consecutive trading day today, fixing at 50.5 bps. In what has become routine of late, DTCC reported on-exchange volume in UST was a paltry $37.3 billion, leaving the 20-day average of volume at just $51.4 billion – the lowest in a long time. Volume in MBS [...]

Unresolved: Nine Years Later Still No ‘Dollars’

By |2016-08-09T19:18:17-04:00August 9th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The fact that we are still discussing illiquidity in “dollar” markets everywhere shows just how little has changed despite so much time and effort. It is August 9 again, the ninth anniversary of the day that changed everything. Even though it has been almost a decade, it’s as if “we” learned nothing from the experience. There are indications in 2016 [...]

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