Pnk - Before the craziness of tomorrow - eg emergency Fed meeting and institutional collapse (forget which, deutchse bank or credit suisse?) - do you have any concerns we should be watching or following?
Thanks for your continued lead on these things Peter.
God Bless you on this Sunday.
Dt
Pnk - Before the craziness of tomorrow - eg emergency Fed meeting and institutional collapse (forget which, deutchse bank or credit suisse?) - do you have any concerns we should be watching or following?
Thanks for your continued lead on these things Peter.
The Credit Suisse saga is shaping up potentially to be another Lehman Brothers debacle--particularly since the catalyst is once again the infamous Credit Default Swap (CDS)--the derivative at the epicenter of the 2008 Great Financial Crisis.
As for the Fed's meeting under expedited procedures tomorrow, there's no telling what will come out of it or even if we'll hear anything right away. Reddit and the Twitterverse are rife with speculation, but the posted agenda item is anodyne, generic, and susceptible to misinterpretation.
However, the probable impetus for the meeting is the UK pension crisis. As I have stated earlier, the potential for contagion has financial markets on edge.
With over $2.4T in the overnight reverse repo market as of last Friday, there should be ample liquidity to unwind any transactions on the verge of turning toxic at least for the time being.
Another factor to consider is that China is likely gearing up a defensive sale of is dollar forex reserves in an effort to support the yuan, which is getting weaker and weaker against the dollar. That's going to impact US treasury yields, and put further stress on the markets.
Pnk - Before the craziness of tomorrow - eg emergency Fed meeting and institutional collapse (forget which, deutchse bank or credit suisse?) - do you have any concerns we should be watching or following?
Thanks for your continued lead on these things Peter.
God Bless you on this Sunday.
Dt
The Credit Suisse saga is shaping up potentially to be another Lehman Brothers debacle--particularly since the catalyst is once again the infamous Credit Default Swap (CDS)--the derivative at the epicenter of the 2008 Great Financial Crisis.
As for the Fed's meeting under expedited procedures tomorrow, there's no telling what will come out of it or even if we'll hear anything right away. Reddit and the Twitterverse are rife with speculation, but the posted agenda item is anodyne, generic, and susceptible to misinterpretation.
https://www.federalreserve.gov/aboutthefed/boardmeetings/20221003closed.htm
However, the probable impetus for the meeting is the UK pension crisis. As I have stated earlier, the potential for contagion has financial markets on edge.
With over $2.4T in the overnight reverse repo market as of last Friday, there should be ample liquidity to unwind any transactions on the verge of turning toxic at least for the time being.
https://fred.stlouisfed.org/graph/?g=Uk6q
Another factor to consider is that China is likely gearing up a defensive sale of is dollar forex reserves in an effort to support the yuan, which is getting weaker and weaker against the dollar. That's going to impact US treasury yields, and put further stress on the markets.
https://markets.businessinsider.com/news/currencies/china-bank-dollar-yuan-currency-markets-economy-beijing-fed-hike-2022-9
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Thank you - unique times indeed!