[HN Gopher] Credit Suisse's Zoltan Warns of Trouble Ahead in Mon...
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Credit Suisse's Zoltan Warns of Trouble Ahead in Money Markets
Author : nickysielicki
Score : 19 points
Date : 2021-07-05 20:34 UTC (2 hours ago)
(HTM) web link (www.wsj.com)
(TXT) w3m dump (www.wsj.com)
| monkeydreams wrote:
| > Mr. Pozsar doesn't expect a sharp rise in short-term yields.
| Instead, he predicts reserves will gradually shift away from
| banks to the reverse repo facility as money managers let short-
| term Treasurys mature. Wall Street's casual attitude toward that
| shift underplays its uncertain consequences, which could include
| unexpected volatility, he said.
|
| > "We are talking about a big rotation and quite a bit of money
| going from bills to the reverse repo facility," he said. "More
| bills will be issued and someone will have to soak them up."
|
| The big question is then 'Who will soak them up?' IANAE but this
| seems to be a case of drowning in the success of current
| initiatives. The problems which arise within the current solution
| (lots of money, few places to spend it, everyone leveraged to the
| hilt) are now predominating at the solution is to do what... more
| of the same?
| walterbell wrote:
| From https://archive.is/J1jQ6
|
| _> One of his projects achieved particular notoriety: a 4-foot
| map detailing the entire financial system, including the repo
| market and so-called shadow banks. Pinned to the wall of a
| briefing room, the map gave regulators a literal picture of the
| networks within which banks, asset managers, insurers and hedge
| funds operate._
|
| PDF of the 4-foot map of the Shadow Banking system,
| https://www.newyorkfed.org/research/epr/2013/0713adri.html
| miohtama wrote:
| One picture tells more than trillion dollars
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(page generated 2021-07-05 23:01 UTC)