fbpx

big 4 banks

China Repo: Vulnerability or Bottleneck, Risk Aversion and Collateral

By |2019-08-12T16:41:07-04:00August 12th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Toward the end of June, Chinese RMB money markets seemed like they had weathered the worst of it. One month earlier, in late May, regulators had seized Baoshang Bank Co. sending waves of uncertainty rippling through markets in China and around the world. Authorities were quick to declare “nothing to see here”, blaming the bank’s close relationship with absentee billionaire [...]

Two Sides of the Same Dollar

By |2018-07-19T17:33:41-04:00July 19th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

One of the most disgusting and least self-aware passages in any of the tens of thousands of published pages of FOMC discussions was in reference to the People’s Bank of China. On September 16, 2008, the US central bank’s operating and policy committee was sharing a laugh at the expense of their Chinese counterparts. Some solemnity and internal reflection should [...]

China’s Banks Deliver RMB In June

By |2017-07-25T18:57:50-04:00July 25th, 2017|Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Updated statistics from the People’s Bank of China shed some light on changing money conditions in RMB. The Big 4 State-owned banks have been the primary liquidity conduit for all policies and activities going back to 2014. These institutions had been since the middle of 2016 increasingly squeezed as to excess funding available to be forwarded into money markets. This [...]

Go to Top