liquidity

Fed plans to start dramatically reducing BTFP & OCE liquidity, causing the banking crisis in September; Fed’s Bullard stepping down in August

Total BTFP & OCE didn't drop this week. The Fed paused pulling liquidity from the banks Now that we know Bullard is leaving the Fed on Aug 14 that's the likely target week when the Fed plans to start dramatically reducing BTFP & OCE liquidity, causing the banking crisis in Sep🤫 https://t.co/lwuGir9xCj pic.twitter.com/om91NKrS9u — Financelot …

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Printin’ The Night Away! US Treasury Yield Curve (10Y-2Y) Still Inverted, But Less So At -86.616 Basis Points (Return Of Liquidity)

by confoundedinterest17 The Federal Reserve is printin’ the night away! Yes, as The Fed printin’ the night away, the US Treasury yield curve (10Y-2Y) is still inverted, but at -86.616 basis points. The 2 year US Treasury yield is down -8.2 BPS, the largest decline in the world … after Greece! Greece? The fiscal wreck …

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China rapid change of mind! Defend the #RMB!! PBOC has DRAINED >1tn RMB liquidity this past week

#China rapid change of mind! Defend the #RMB!! pic.twitter.com/OYA0cTisHw — CrossBorder Capital/ GLIndexes (@crossbordercap) July 10, 2023 Watch #usd and #yen in coming weeks. Has JPY been 'weaponized'?! @acrossthespread https://t.co/dMly80PxGg — CrossBorder Capital/ GLIndexes (@crossbordercap) July 10, 2023 China's Economy Is In Big Trouble And Investors Should Get Out: Miles Yu https://t.co/h0RayHcB44 — zerohedge (@zerohedge) …

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How long before more Fed “panic liquidity support” needs to be pumped into banks who made wrong-way bets on bonds & CRE?

Fed’s Balance Sheet Drops $667 Billion from Peak to $8.3 Trillion, Below Aug 2021, as QT Continues and Bank Panic Support Unwinds.The Fed has now shed 20.5% of Treasury securities it had bought during pandemic QEhttps://t.co/mPCK2pkADD pic.twitter.com/zN0GQQuqAF — Wolf Richter (@wolfofwolfst) July 7, 2023 h/t Simian_Stacker

US Mortgage Purchase Demand Down -42.3% Under Bidenomics, Mortgage Refi Demand Down -91%, Mortgage Rates UP 131% (As Liquidity Dries Up)

by confoundedinterest17 Joe Biden, or “Blow Biden” after the cocaine was discovered in the White House the other day, owns the abysmal mortgage and housing market thanks to The Fed fighting inflation caused by Bidenomics (massive Federal spending and massive Fed stimulus). Mortgage applications decreased 4.4 percent from one week earlier, according to data from …

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Banks would lose $541 billion in ‘hard landing’ contingency… Most investors believe there will be no recession in 2023… Retail has been wonderful exit liquidity for big players.

Banks would lose $541 billion in ‘hard landing’ contingency: Fed The Federal Reserve said Thursday that banks are well capitalized enough to endure a severe recession but stand to lose $541 billion if the economy heads south. The findings came from the Fed’s annual stress test of the banking sector, which is based on major …

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Survey shows hedge funds tightening nonprice terms due to liquidity issues.

by Dismal-Jellyfish Source: https://www.federalreserve.gov/data/files/scoos_202306.pdf Summary The June 2023 Senior Credit Officer Opinion Survey on Dealer Financing Terms (SCOOS) collected qualitative information on changes in credit terms and conditions in securities financing and over-the-counter (OTC) derivatives. In addition to the core questions, the survey included a set of special questions about the funding of clients engaged in …

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Something is broken? Its not just the Fed… World Central Banks starting to add liquidity; Corporate Insiders are selling heavily into the stock market rally over the last 2 months

Its not just the #Fed… World Central Banks starting to add #liquidity See our latest liquidity heatmap pic.twitter.com/ryLxnyE4Sp — CrossBorder Capital/ GLIndexes (@crossbordercap) June 20, 2023 Corporate Insiders are selling heavily into the stock market rally over the last 2 months pic.twitter.com/bwBupLJWuh — Barchart (@Barchart) June 20, 2023 Credit card debt is now less than …

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Swiss National Bank, in guessing, provides liquidity “for purpose” for Credit Suisse’s toxic positions…from my vantage/assessment, “infinite liquidity” would be a closer approximation.

by quad-beep-05 via WSJ: The Swiss National Bank has offered UBS UBS -0.93%decrease; red down pointing triangle Group AG around $100 billion in liquidity to help it take on the operations of Credit Suisse Group AG, according to the people familiar with the matter. Details of the liquidity offer couldn’t be learned but are part of the talks to engineer …

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Apollo Global Management chief economist Torsten Slok: “Since SVB collapsed, the Fed has been adding liquidity, and the S&P 500 is up more than 10%. The high correlation between Fed net QE and the S&P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market,”

by Dismal-Jellyfish Source: https://www.marketwatch.com/story/this-incredible-chart-shows-the-close-relationship-between-the-s-p-500-and-fed-liquidity-166542a7 Earnings, schmearnings. Is what really matters just liquidity? This incredible chart, from Apollo Global Management chief economist Torsten Slok, shows the close relationship between S&P 500 SPX, -0.37% performance and net Federal Reserve quantitative easing (QE) since the pandemic began. Here, Fed QE is defined as the Fed’s total assets minus the balance of the …

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CCLF failure could trigger a liquidity domino effect throughout the market.

by Dismal-Jellyfish FIC-GOV Alert! GSD Capped Contingency Liquidity Facility® (CCLF®) will reset each Netting Member’s CCLF Cap on 7/1/23. If a member defaults, the FICC would tap into the CCLF, which could drain liquidity from other members. A CCLF failure could trigger a liquidity domino effect throughout the market. https://www.dtcc.com/-/media/Files/pdf/2023/6/15/GOV1495-23.pdf What is the Capped Contingency …

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Federal Reserve continues to be forced to inject massive liquidity in banks… It’s a full-blown crisis

https://t.co/J8joLEILkG — Win Smart, CFA (@WinfieldSmart) June 8, 2023 No it isn't. https://t.co/Yz6TjPCYMI pic.twitter.com/ns9EdXBrd1 — Financelot (@FinanceLancelot) June 7, 2023 Treasury Secretary Yellen warns of commercial real estate ‘issues’ that could strain banks (by the time Yellen the Felon notices something is an “issue,” trust me, it’s a full-blown crisis) The Fed fixing the economy …

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As liquidity dries up, banks are becoming less interested in lending to each other.

The Interbank Debt Market: A Warning Sign For The Stock Market’s Future The cash that is currently flowing into the reverse repo market will flow into some of those Treasurys, but the problem is that market is an overnight program. Treasurys are longer denominated instruments. Liquidity is going to flow out of the system at …

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Liquidity will be severely depleted…

Blackstone Real Estate Fund Facing Substantial Redemption Requests – The Registry Blackstone’s retail real estate fund, valued at $69 billion, experienced a seventh consecutive month of limited investor withdrawals in May, as it faced substantial redemption requests. The fund, known as the Blackstone Real Estate Income Trust or BREIT, disclosed that it received $4.4 billion …

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$qqq to $iwm ratio never higher… ‘Bye bye liquidity… right when everyone is max bullish and on vacation’…. ‘Getting out, there will be no one on the other side of the trade.’

Bye bye liquidity… right when everyone is max bullish and on vacation.pic.twitter.com/8Y0a7zk1WV https://t.co/FQUZXdc38m — Financelot (@FinanceLancelot) June 2, 2023 The chart of the week: S&P Tech with the ISEE call/put index:https://t.co/zlMsxl36fz Getting out, there will be no one on the other side of the trade. pic.twitter.com/rHyXwFz3oe — Mac10 (@SuburbanDrone) June 2, 2023 The $VIX hasn't …

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CCLF reset effective July 1, 2023. “All members are reminded that CCLF requirement provided by MBSD will be incorporated into such Member’s liquidity planning.”

by Dismal-Jellyfish https://www.dtcc.com/-/media/Files/pdf/2023/6/1/MBS1227-23.pdf This follows up on changes to the reset date and Look-Back Period: What is the Capped Contingency Liquidity Facility (“CCLF®”)? On April 25, 2017, the Commission approved FICC’s adoption of the Clearing Agency Liquidity Risk Management Framework (‘‘Framework’’), which broadly describes FICC’s liquidity risk management strategy and objective to maintain sufficient liquid …

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