ScottSkyrm.com (Blog) – April 2014 Collateral Shortage Preview Almost every year Repo rates decline from the middle of April to around the middle of May – it’s known as the “April Collateral Shortage.” It occurs because a large amount of Treasury bills mature right after the April 15 tax date, which creates a shortage of… Continue reading The April Collateral Shortage
Real Time Economics (WSJ Blog) – The BOJ Tie: Light Blue for Optimism? Was light blue the possible color code for the Bank of Japan governor’s light-hearted and optimistic stance on Tuesday? In the BOJ’s first post-meeting news conference to be covered in real time by reporters, a relaxed and confident Haruhiko Kuroda sported a… Continue reading It’s All In The Tie
Bloomberg.com – The Fed’s New Capital Rule Is Good But Not Yet Good Enough The U.S. Federal Reserve has taken an important step toward reducing the threat that many of the world’s largest banks present to taxpayers and the economy. Unfortunately, the Fed and regulators around the world still have more to do. The central… Continue reading How Much Would Higher Capital Ratios Cost Banks?
The Wall Street Journal – OECD Unemployment Rate Rose In February The rate of unemployment across the 34 nations that are members of the Organization for Economic Cooperation and Development rose in February, a setback for the global economic recovery after three straight months of decline. The OECD said Wednesday the unemployment rate for its… Continue reading Global Unemployment
Bloomberg.com – Here Is Some Enriching Tax Data Tax day is almost here, which makes this a good time to look at what the U.S. Treasury’s daily tax data tell us about the state of the economy. When the private sector is doing well, the government ends up taking in more money, as it is… Continue reading Tax Receipts As April 15 Approaches
Bloomberg.com – Draghi Hunts for QE Assets in ‘Dead’ Market Mario Draghi’s asset-purchase plan to ward off deflation may be lacking one key element: enough assets to buy…The ECB’s focus on ABS for monetary easing risks guiding it toward a policy that might be slow to evolve and far smaller than the 1 trillion euros… Continue reading What Happens To QE When There Are No Assets To Buy?
The Wall Street Journal – Technical Glitch Hits CME Trading A technical glitch at CME Group Inc. halted electronic trading in corn and other commodities, leaving the world’s largest futures exchange operator scrambling to fill orders using shouting floor traders instead of the computers that have largely replaced them. Futures and options trading in 31… Continue reading Computer Glitch Stops CME Electronic Trading
The Wall Street Journal – Goldman Mulls Closing Dark Pool Goldman Sachs Group Inc. is considering shutting down one of the world’s largest private stock-trading venues, according to people familiar with the matter. In conversations with market participants over the past several months, Goldman executives have broached the subject of closing its so-called dark-pool trading… Continue reading Goldman May Close Its Dark Pool
None Today
<Click on chart for larger image> Comment As the chart above shows, expected growth rates for Q1 2014 continue to weaken. This is consistent with the negative guidance shown in the chart below. In fact, company guidance is near its lowest level since 2008. <Click on chart for larger image> As the red line in… Continue reading Company Guidance Continues To Weaken
<Click on chart for larger image> CNBC – After the selloff, investors eye cyclicals switch Analysts have also been watching the Citigroup Economic Surprise Index, which tracks how data is faring compared with expectations for the 10 major world economies. The index rises when economic data come in better than economists’ estimates and falls when… Continue reading Disappointing Economic Releases
The Big Picture – Enquiring Minds Want to Know: Is David Malpass Correct about Fed Tapering? Let’s go through the accounting of a Fed purchase of securities. (This would be a less tedious exercise if I knew how to draw T-accounts in Word, but I don’t. So, if you are interested in reviewing the lecture… Continue reading Discussing The Taper