| Author | Message | ||
     Vamsea Kurra Bewarse Username: Vamsea Post Number: 2548 Registered: 06-2004 Posted From: 24.116.55.227 Rating: N/A |
https://fortune.com/2019/09/23/repo-market-big-deal-400-billion-bailout-unnervin g/ Put otherwise, the Fed is back where it was roughly a decade ago, effectively buying U.S. Treasuries from banks on an indefinite basis. But the difference this time? There’s no financial crisis in sight, just the uncomfortable fact that private capital markets once again need public support. “For all intents and purposes, this will be equivalent to QE, with scheduled purchases of securities. We estimate that over the first year, the Fed would need to buy roughly $400bn of Treasury securities to achieve an appropriate level of reserves, plus a buffer,” the Bank of America wrote in a research note. As plumbing problems go, this will be an expensive one to sort out. |