Hoarding, Collateral and the Certain Indication of Balance Sheet Restrictions

By |2016-03-11T18:30:21-05:00March 11th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There is an ongoing mess in repo markets and not a lot of straightforward commentary about it. As usual, whenever any repo tenor trades highly special we hear only about the persistence and plethora of shorts betting on rate normalization. Since rates, overall, have done only the opposite going back to June 2014 and the start of this repo mess [...]