Search

Home > Eurodollar University > Glowing Orange: Repo Market Collateral Rumble
Podcast: Eurodollar University
Episode:

Glowing Orange: Repo Market Collateral Rumble
Category: Business
Duration: 00:30:00
Publish Date: 2021-07-25 16:44:12
Description:

Early-morning action in the repo market shows a musical chairs-like collateral scramble; it has the Fed's attention. But the Fed is blasé about it (i.e. 'too much cash'). Yet these collateral scrambles resemble what we saw in March 2020.


----SEE EPISODE #91----
Alhambra YouTube: https://bit.ly/2Xp3roy
Emil YouTube: https://bit.ly/310yisL

----HEAR EPISODE #91---
Vurbl: https://bit.ly/3rq4dPn
Apple: https://apple.co/3czMcWN
Deezer: https://bit.ly/3ndoVPE
iHeart: https://ihr.fm/31jq7cI
TuneIn: http://tun.in/pjT2Z
Castro: https://bit.ly/30DMYza
Google: https://bit.ly/3e2Z48M
Spotify: https://spoti.fi/3arP8mY
Pandora: https://pdora.co/2GQL3Qg
Breaker: https://bit.ly/2CpHAFO
Castbox: https://bit.ly/3fJR5xQ
Podbean: https://bit.ly/2QpaDgh
Stitcher: https://bit.ly/2C1M1GB
PlayerFM: https://bit.ly/3piLtjV
Podchaser: https://bit.ly/3oFCrwN
PocketCast: https://pca.st/encarkdt
SoundCloud: https://bit.ly/3l0yFfK
ListenNotes: https://bit.ly/38xY7pb
AmazonMusic: https://amzn.to/2UpEk2P
PodcastAddict: https://bit.ly/2V39Xjr


----EP #91 TOPICS-------
01:53 Montana Senator Daines asked a Jeff-Snider-question to Jerome Powell in testimony.
05:02 Jerome Powell stated the Fed is focusing on the [dead] Federal Funds rate / range. WHY?!
06:29 In later testimony Powell changes his mind from "too much cash" to "not little collateral"
11:11 The NYFed notices that most repo transactions take place very early in the morning. Why?
13:39 Early morning collateral scrambles? The repo market? These took place in March 2020.
17:53 The NYFed offers several other reasons for the scramble: fees and liquidity.
19:07 The NYFed notes that more trades are taking place pre-market (to preempt the scramble?)
20:27 Monday, July 19 UST Bond yields dropped - but that was not a Jeff Snider "collateral day"
23:32 Tuesday, July 20 UST Bill yields traced out a fang-like drop in an early morning scramble
25:25 Show Conclusion: collateral scrambles are not rainbow/unicorn-reflationary phenomena


----EP #91 REFERENCES---
Lower Yields And (fewer) Bills: https://bit.ly/3BDZSxi
Why Don't Bonds Reflect CPI Alarm About Inflation?: https://bit.ly/3kMx2oq
Sorry, One More On Bills: Today A Really Good Example of All The Things We’ve Been Focused On Lately: https://bit.ly/3i20FAo
Intraday Timing of General Collateral Repo Markets: https://nyfed.org/2VbxIZv
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7
 

---------WHO-----------
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by David Parkins. Podcast intro/outro is "Night Driver" by Ballpoint and Cushy from Epidemic Sound.
Total Play: 0

Some more Podcasts by Jeff Snider

100+ Episodes
The Scully A .. 1