The Fed insists that their repo support operations are "not QE" and therefore are not influencing financial markets. 20 years ago the Fed did something similar and it seemed to have a profound effect on financial markets.... Read More
Summary With the election still roughly a year away, there is plenty of time for candidates’ odds to shift. In fact, a look at recent history shows only two candidates who led at this point in the process in previous... Read More
The Fed should be mapping out a plan to return the repo market to normal. Instead, their support of the market could reach $500B by year-end. Repo is too important to leave in this state for much longer.... Read More
On December 5, 2019, Jim spoke to the Fixed Income Analysts' Society of New York City.... Read More
On December 5, 2019, Jim spoke to the Fixed Income Analysts' Society of New York City.... Read More
In yesterday's testimony, Chairman Powell proclaimed the repo market is under control. The effective funds rate is trading even with IOER for the first time in many months. However, this is all due to the Fed's heavy involvement via repo operations and T-bill purchases. This market will remain under control so long as the Fed controls it.... Read More
Jim Bianco spoke to the Inside Fixed Income ETF conference in San Diego on November 13, 2019.... Read More
Years of rule changes, balance sheet reductions, band-aid approaches, and a misreading of the funding markets have resulted in an under-reserved system unable to meet the needs of the markets. This is fixable, but it never should have happened in the first place.... Read More
The old adage, "Sell in May and go away" is examined on a couple different timelines. ... Read More
The effective fed funds rate broke above the interest on excess reserves rate. If this problem persists or grows worse, it could be an issue for Fed policy.... Read More