A Relevant Liquidity Lesson For Complex Structures

By |2016-02-02T18:24:16-05:00February 2nd, 2016|Economy, Federal Reserve/Monetary Policy, Markets|

In the third quarter 10-Q from Capital One, the bank notes a rather large change in funding. At the start of the year, Capital One had drawn $17.72 billion in advances from the Federal Home Loans Banks (which of the twelve isn’t stated and it is likely there were funding agreements with several). The FHLB system allows banks to pledge [...]