NY Fed to Offer $365 billion in year-end repo operations

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Of note, overnight repos on 12/31 and 1/2 will increase to $150 billion (I am assuming they mean for each day), and an additional repo of $75 billion offered on 12/30 to mature on 1/2.

I am wondering how seriously Poszar’s note from the other day was taken by Powell and Co. The key idea, supposedly, is that the amount of liquidity provided by the Fed isn’t the real sticking point, it’s the balance sheets of primary dealers which are subject to too many restraints; therefore this operation won’t really solve the key issues at stake. But I guess we’ll see what happens!

the_wine_expert

I’m still trying to understand this as a novice retail investor, but I’ve found Jeff Snider talking about how this issue is rooted in the Eurodollar market. I imagine it isn’t coincidence that the initial spike came on Eurodollar futures contract settlement day last quarter. This Monday, being the next one, might have something to do with the recent revision. We’ll see how things shake up I guess.

If there are dollar shortages in the banking sectors (Domestic & International) and expanding QE is the grease in the wheels, is it not reasonable to expect this liquidity bind-up to continue to spread without some kind of relief valve like QE (as artificial liquidity) or some kind of catalyst for dollar divestment to create liquidity?

The safe haven of the (relatively) high yielding and well protected USD, coupled with global ZIRP/NIRP policies squeezing bank balance sheets as the causation for dollar scarcity, which is more likely – continued global economic slowdowns acceleration this phenomenon, or …I can’t even seem to imagine what other forces could turn the tide.

Sorry for the newb question, but this is hard to get feedback on.

erikyouahole

Not QE guys…

financeoptimum

When they started this a month ago, they actually gave the excuse “this is just short term cash crunches caused by end of quarter corporate tax filings”

Godspiral

> On December 31, 2019 and January 2, 2020, the overnight repo offering will increase to at least $150 billion

TheVenetianMask

Peloton plunges after investor says the stock is worth only $5

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An overpriced treadmill with a screen? I’m good.

OfficerNaaasty

Peloton is for an affluent crowd, not a millennial one.

Seven__Lions

> Short-seller Citron Research said Tuesday it expects the stock to plunge nearly 85% to just $5 a share.

Firm banking on stonk falling says stonk will fall. How is this news?

nomorepii

Looks like Citron has a new target now that they have reaped big $$ shorting Jumia. 😀

Riskchaser

I don’t understand this article. Peloton already has a treadmill, and has since before their IPO. Why are they talking about “when it will happen”?

Also, Apple only sells hardware, software, and subscriptions, so using that as a way of putting a company down doesn’t make sense.

More talk about why the competition will erode peloton would’ve been more helpful.

Edit: spellcheck is changing “talk” to “y’all” for some reason, corrected that.

JohnTesh

Fed QE4 could happen before year end, Credit Suisse says

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Ermmm I thought we were already on QE4? So this is QE4 on steroid?

DanWoo_Official

FYI, Zoltan Pozsar predicted the repo issues and he’s a, if not the, shadow banking expert.

xcsler_returns

The Fed balance sheet has been GROWING again since this past quarter. They couldn’t even get a chance to reduce the balance sheet by 1 trillion. Now these mother fuckers are growing it by nearly 300 billion USD in just 3 months. Might not be exactly QE, but smells like one.

mililani

Im new to this section. What does QE4 mean?

Oekogott

Can’t be on QE4 if QE3 never happened

CurtHolls5

Morgan Stanley cutting jobs due to uncertain environment: Sources

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As a current tech employee at a large bank, this is the downside of working in the non revenue generating side of the business

Send_Newts_Please

Paul Volcker died and the top story in this sub is about MS accelerating back office attrition by like two, three months.

APIglue

Eh – banks turnover the bottom 5% to 10% of their employee base every single year. “Up or out” is a very real thing.

Laminar_flo

A 2% cut is not extraordinary in any given year. Non-US IBs have been exiting entire markets or business altogether (e.g DB, Nomura, Barcap). Fin svcs is a cyclical biz and we’re in a bad part of the cycle.

barren_field_of_fks

This is every bank since they’ve realized there’s a lot of fat to trim. I think US Bancorp unloaded close to 10% of its workforce last year, in increments that didn’t bring about bad publicity. From what I heard from friends that work there it included a lot of managing directors and execs

maiiitsoh