fbpx

hkd

Seriously, Wherefore Art Thou Collateral?

By |2017-12-07T17:35:32-05:00December 7th, 2017|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I’m going to go out on a limb and claim there is something seriously wrong in repo. All jokes aside, I know it sounds like a broken record but the dimension that matters is not intermittent collateral problems so much as the greater intensity to them and in a condensing timeframe. Escalation is a description you really don’t want to [...]

It’s Never So Easy Getting Out

By |2017-10-30T18:54:08-04:00October 30th, 2017|Markets|

Hong Kong carefully built its sterling reputation (pun intended) over many years and decades. Through mostly careful rule and careful adherence to rules, there was no imbalance too big or too tough that the HKMA could not readily handle or absorb. The result was a condition that every central bank and monetary authority should strive for. As I wrote back [...]

TIC For August (China’s Belgian Hong Kong Dollars)

By |2017-10-23T18:08:58-04:00October 23rd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Chinese have been on a UST buying spree of late, having announced to the world several months into it that they were intent on keeping it going. The idea in publicly endorsing and really highlighting their official activity was as a currency policy – to stabilize CNY against its highly disruptive tendency toward devaluation (which isn’t really devaluation). How [...]

TIC For August (Background)

By |2017-10-23T18:09:31-04:00October 23rd, 2017|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Treasury International Capital (TIC) report produced somewhat of an anomaly in its update for August 2017. There was a lot going on during that month, mostly as UST yields fell (even though interest rates have nowhere to go but up, supposedly) while CNY continued its blistering ascent. As to the latter, it was quite clear by then Chinese actions [...]

HIBORMania (confirmed)

By |2017-10-02T18:44:55-04:00October 2nd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

At the end of Q3 2015, on September 29 that year, the overnight HIBOR (Hong Kong unsecured delivery of HKD) rate fixed at 0.0507%. That was barely changed from the days and even months leading up to that point even though it was the last of regular trading before the start of China’s Golden Week. Despite enormous illiquidity throughout the [...]

Location Transformation or HIBORMania

By |2017-09-25T12:29:41-04:00September 25th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Communist Chinese established their independence on September 21, 1949. The grand ceremony commemorating the political change was held in Tiananmen Square on October 1 that year. The following day, October 2, the Resolution on the National Day of the People’s Republic of China was passed making October 1to be China’s National holiday. It typically kicks off the second of [...]

The Eurodollar Equation Begins With The Imagination Variable

By |2017-09-21T17:43:52-04:00September 21st, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There wasn’t a whole lot that made sense about iron ore’s price surge through August. In the flipside of what is believed also to be moving copper, Chinese authorities have made it plain that they will take pollution control seriously this winter. For copper, that likely means shutting down mine production, tightening supplies, and could therefore be price positive, perhaps [...]

Still Written in Chinese

By |2017-08-18T12:30:03-04:00August 18th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The world of eurodollars is always going to be hidden. What goes on, really goes on, often sees no light of day. The most basic financing transactions are typically bilateral, meaning that the only people who really know the terms and the reasons are the two counterparties engaged. That is also true if one of those counterparties just happens to [...]

Why Might Hong Kong Still Be Interesting?

By |2017-07-19T19:14:03-04:00July 19th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

When the People’s Republic of China (PROC) was granted full UN status in 1971, everything was then set in motion. The successor to Chaing Kai-shek’s nationalist government in the Republic of China (ROC, or what we call today Taiwan) was originally granted as a founding member and one of five Security Council seats. UN General Assembly Resolution 2758 instead recognized [...]

Rising Dollar = Dollar Shortage = Global Liquidity Shortage

By |2016-11-30T14:17:00-05:00November 30th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Before October 1997, what would become known as the Asian flu was just another opportunity for the mainstream to dismiss what many people, including many prominent, competent people, had been warning about for years before. The usual refrain thrown back at them was some form of “you are missing out.” People, of course, never really learn from these episodes because [...]

Go to Top