Counterparties

Tyler Durden's picture

ECB Releases Full Details Of Its Corporate Bond Buying Program





  • The CSPP aims to further strengthen the pass-through of the Eurosystem’s asset purchases to the financing conditions of the real economy.
  • Purchases will start in June 2016.
  • The CSPP will be carried out by six national central banks acting on behalf of the Eurosystem, coordinated by the ECB.
  • In combination with other non-standard measures, the programme will provide further monetary policy accommodation and help inflation rates return to levels below, but close to, 2% in the medium term.
 
Tyler Durden's picture

The Fed Sends A Frightening Letter To JPMorgan, Corporate Media Yawns





Yesterday the Federal Reserve released a 19-page letter that it and the FDIC had issued to Jamie Dimon, the Chairman and CEO of JPMorgan Chase, on April 12 as a result of its failure to present a credible plan for winding itself down if the bank failed. The letter carried frightening passages and large blocks of redacted material in critical areas, instilling in any careful reader a sense of panic about the U.S. financial system. The Federal regulators didn’t say JPMorgan could pose a threat to its shareholders or Wall Street or the markets. It said the potential threat was to “the financial stability of the United States.”

 
Tyler Durden's picture

"We Don't Have A Wonderful Explanation What Is Going On" - Reverse Repo Usage Plunges To Program Lows





Moments ago the Fed's RRP operation totaled only $18.7 bln, the lowest level of participation since December 19, 2013 when the maximum bid per counterparty was only $1 bln compared to $30 bid since September 2014. In other words, program participants took only $18.7 billion worth of Treasury securities from the Fed, just months after the Fed expanded the reverse repo program to account for potentially hundreds of billions in reverse repo demand after the Fed's 25 bps rate hike. What is going on? For the answer we looked to repo experts Stone McCarthy, but unfortunately they too are stumped: "We don't have a wonderful explanation for the diminished participation."

 
Tyler Durden's picture

A "Massive" New Headache For Banks Has Emerged





It's not just the shale drillers who are in danger as they see their liquidity evaporate. As the WSJ writes today, and as covered here since January, it is the lenders themselves whose unfunded revolver exposure may suddenly become funded and expose them to even greater risks from the energy sector should oil not rebound far more forcefully and put US oil and gas companies back in the black. How big is the exposure? Very big: $147 billion.

 
Reggie Middleton's picture

So Called "Trusted Parties", Bank Collapse, the ECB and Blockchains: Watch as I Call the Next Bear Stearns, Again!





I called it once in January 2008 (Bear). I called it 2x in March 2008 (Lehman), and I'm calling it again in 2016. Don't say you didn't know. These proclamations of trust will truly put my analysis - and your capital - to the test.

 
Reggie Middleton's picture

In Finance, What Happens When You Trust the Untrustworthy? You're About to Find Out With Private Blockchains





Putting trust in an entity does not mean that you can trust that entity. Ask the former clients of Bernie Madoff, Lehman Brothers, Bear Stearns and Man Financial - among many others. Despite these very recent historical examples of misplaced trust consequences, here we go again!

 
Tyler Durden's picture

Something Did Break After All: Repo Rate Soars Most Since September 2008





An afternoon sell-off in GC pushed overnight rates (on quarter-end) as high as 1.75% and the market ended closed at 1.75%. Drumroll please! The 1.75% rate was the highest GC Repo trade since September, 2008.

 
Reggie Middleton's picture

With Wall Street Bitten by the Blockchain Bug, How Do We Admit the Truth About the Technology's Disruptive Potential?





Bankers and their technology partners say blockchain tech is not disruptive. Lawyers and others say it drops intermediation costs (but aren't bankers intermediaries?). The truth is disruption is unavoidable, and the sooner market participants realize this, the better.

 
Tyler Durden's picture

Swiss National Bank Admits It Spent $470 Billion On Currency Manipulation Since 2010





Swiss policy makers rarely state outright that they’ve intervened, and analysts use data on sight deposits and foreign currency reserves to gauge the scope of the central bank’s actions. Breaking with the usual protocol, Jordan said in June the SNB had acted to stabilize the franc amid the Greek debt crisis. The bottom line: CHF86.1 billion spent on FX intervention in 2015 and a whopping $470 billion since 2010.

 
Tyler Durden's picture

Most "Priced In" Policy Since 2011 - Why Draghi Better Not Disappoint





Mario Draghi better put up or shut up at the next ECB meeting as the market is more-than-pricing-in a very significant deposit rate cut (deeper into NIRP). In fact, at -56bps, 2Y German bond yields are the most "priced in" since 2011 (and bear in mind he disappointed in December).

 
Tyler Durden's picture

With All Eyes Again On Draghi, This Is What Remains In The ECB's Toolbox





Today's deflationary report, the worst since the start of Europe's QE, virtually assures another substantial round of policy easing from the European Central Bank on March 10. The question is what the ECB will reveal. Here are the options.

 
Tyler Durden's picture

Chesapeake's AIG Moment: Energy Giant Faces $1 Billion In Collateral Calls





"we have received requests to post approximately $220 million in collateral, of which we have posted approximately $92 million. We have posted the required collateral, primarily in the form of letters of credit and cash, or are otherwise complying with these contractual requests for collateral. We may be requested or required by other counterparties to post additional collateral in an aggregate amount of approximately $698 million."

 
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