Today another key gauge of funding stress in the credit markets started flashing red, signalling banks are bracing for a wave of potential funding disruptions amid the soaring geopolitical turmoil, or may already be scrambling to procure funding to meet commodity margin calls.
The Fed's balance sheet is now a record $9 trillion while the Fed's reverse repo facility holds a massive $1.5 trillion. Heightened geopolitical uncertainty together with increased market volatility has encouraged banks to build up their precautionary cash holdings.
This precautionary borrowing is bumping up against a timing constraint. So keep an eye on both CP and FRA spreads to OIS, which will be among the earliest available indicators of a major market liquidity lockdown.
Mr Trecherous :
卫斯理传奇 : True. A shock wave is coming. US sanctions is going to back fire on themselves. Biden is just a political, he knows nuts.
Powerplays 卫斯理传奇 : We gotta get rid of that moron before he dooms us all!
Mcsnacks H Tupack OP Powerplays : We were doomed when we sat by and let them take the White House back. Nobody takes a step back and looks at the big picture. Don’t focus on the war. Focus on the money, that’s the root of all evil. Who is getting rich right now? The Bidens, the Bush’s, the Clinton’s, Zelenskyy, Trudeau, Putin, Saudi princes, the Elites own all the worlds oil. Who gets poorer? Every citizen in all countries. They have gotten the wealth gap so that 80% of the classes in the World could put all their money together and still not have more than the top 1%.
Mcsnacks H Tupack OP Mr Trecherous : It’s going to be better than normal when it’s all said and done. That’s a long ways away tho.
Powerplays : @Mcsnacks H TupackThey all work for this guy
Powerplays : Dang both your comments got deleted? Master Mcsnacks and Mr T! I can’t see it but got the notifications
Mcsnacks H Tupack OP Powerplays : I named names.
Mcsnacks H Tupack OP Powerplays : Look at the besties in this photo
Mcsnacks H Tupack OP Powerplays : Don’t want people to know that US and Canada are giving arms to a Nazi regime to take over the country.
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