it’s all over

Where’s The Floor?

By Jeffrey P. Snider|2017-03-02T18:48:40-05:00March 2nd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On February 23, the equivalent yield for the 4-week US Treasury bill was just 39 bps. That was almost 11 bps (counting full pips) below the so-called money rate floor, to which T-bills are a near enough equivalent to count in that view. It was also 36 bps below IOER, which at one time was thought to be a huge [...]

Way Past Humpty Dumpty

By Jeffrey P. Snider|2017-02-03T17:51:41-05:00February 3rd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The most basic link in finance is that between risk and reward. Just like alchemists who once sought a path to gold from lead, a great deal of modern finance was built around finding a shortcut between them. Discovering the great asymmetry where risks would be low but rewards sky high was the Holy Grail of later 20th century mathematics. [...]

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