fixed income

Jamie Dimon (Still) Hates Bonds Because Inflation; Other Banks Apparently Love Bonds Because There’s No Credit To Inflation

By Jeffrey P. Snider|2021-06-18T16:45:41-04:00June 18th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

JP Morgan’s Jamie Dimon hasn’t produced an enviable track record opining on inflationary potential. He’s forever deeply entrenched in the inflation camp, and because he sits atop the corporate structure of one of the world’s biggest and most well-known banks, it does seem reasonable at first how his opinion on monetary matters is taken very seriously – despite repeatedly missing [...]

Spitballing In German

By Jeffrey P. Snider|2019-06-17T18:31:03-04:00June 17th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Something just doesn’t smell right. As I’ve pointed out over the past few weeks, bill yields have been falling. The front, the 4-week instrument, has seen its equivalent rate plummet. This is consistent with deep liquidity problems as well as looming rate cuts (the two do go hand-in-hand). Over the past two session, including today, however, bill yields have spiked. [...]

Canada Signals Japan For Bond Yields

By Jeffrey P. Snider|2019-04-24T17:45:02-04:00April 24th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Back in October, late October specifically, the Bank of Canada removed the word “gradual” from its policy statement. Inflation, staff Economists projected, was moving up as was the Canadian economy. It was finally time to become more aggressive. Freed from that one word, BoC officials could opt for a “rate hike” at every meeting. It was widely expected in December [...]

‘Bond Trading’ Exodus, The Global Economy’s Q4 Landmine

By Jeffrey P. Snider|2019-04-05T17:52:26-04:00April 5th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It isn’t just US or European banks which are shrinking. The nature of this post-August 9, 2007, world is just that – global. Sure, there are regulations which have made investment banking more expensive. But there isn’t a rule or law that Wall Street (really Lombard Street) wouldn’t “discover” a way to circumvent it if they all thought it was [...]

Less Than Square One

By Jeffrey P. Snider|2017-10-17T17:49:11-04:00October 17th, 2017|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Goldman Sachs was the latest Wall Street bank to jump on low volatility. Despite an enormous gain in prop trading, most of the rest of the firm’s results were moving in the wrong direction. In its market making segment, for example, the firm booked $2.1 billion in net revenue in the third quarter, 22% less than what it took in [...]

What Else Needs To Be Said? Why It Will Continue, Con’t

By Jeffrey P. Snider|2017-10-16T18:38:16-04:00October 16th, 2017|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

If the essence of modern eurodollar money is bank balance sheet capacity, then we need not wonder what has gone wrong or why. The very heart of this global currency system no longer beats so healthy and strong. Global banks shrink rather than expand at a breakneck pace, their desire to do the latter restrained by the incapacity of the [...]

The Math Thickens

By Jeffrey P. Snider|2016-10-26T16:34:03-04:00October 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It has been my contention for some long while that one of the biggest parts of this “rising dollar”, that is, again, nothing more than a euphemism for the various ways in which there is a “dollar” shortage, is balance sheet math. The problem in as simple terms as perhaps possible is that positions were taken, balance sheets constructed, and [...]

More Of The Same From Frankfurt

By Jeffrey P. Snider|2016-10-14T17:17:49-04:00October 14th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It is quite interesting that two pieces of likely interconnected news hit today about everyone’s favorite German bank. First, Reuters reported rumors that C-suite officials from Deutsche Bank alerted their HR to perhaps expect double the job cuts from what was previously announced. Last October, the bank claimed that it would need to shed about 9,000 employees. Apparently, that might [...]

Suspicions About Bank Math: A Systemic Story Told Through Deutsche

By Jeffrey P. Snider|2016-10-11T18:18:15-04:00October 11th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As perhaps another in a very long line of indications as to what is unholy and wrong about today in banking and finance, over the weekend it was reported in the Financial Times that Deutsche Bank had received an improper accommodation on its “stress test.” In what can only be described as a clear example of cheating, DB’s capital position [...]

The Implications of Federal Reserve Accounting in ‘Missing Money’

By Jeffrey P. Snider|2016-01-26T16:32:00-05:00January 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Someone emailed me this article published at Yahoo!Finance that purports the Fed’s tightening is going to send stocks soaring, the DJIA mentioned specifically heading toward 25,000. The way in which this thesis was derived is the object of inquiry, starting with the belief that QE4 (QE5 by my reckoning) is forthcoming. This is not due to the Fed realizing its [...]

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