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The Bad News Of Repo Fails Subsiding

By |2014-07-16T16:12:27-04:00July 16th, 2014|Bonds, Currencies, Federal Reserve/Monetary Policy, Markets|

With the latest data from FRBNY in hand, the surge in repo fails authorities and certain credit market observers that were stressed over the affair, it is actually confirmation of regularity, and thus a high degree of systemic deficiency. Further, as a real world test, it ends any credibility the reverse repo program had as an institutional tool for maintaining [...]

Gold Hit With Another Collateral Shortage

By |2013-09-13T15:35:21-04:00September 13th, 2013|Markets|

The sudden upturn in GOFO led me to believe that there were changes in the gold dynamics from the relatively favorable period through mid-August. Given the repo action around the UST auctions this week and last, there can be little doubt the collateral shortage has been renewed. Starting August 27, several tenors of UST bonds went special in repo markets, [...]

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