Posts from Tuesday Sep 3 2013

The Closer


– Advice for Larry Summers if becomes Fed chair: shift. Read more

Collateral scarcity, India edition

FT Alphaville readers are well versed on the potential downsides of collateral scarcity in western markets.

But consider how a collateral scarcity problem might unfold in an emerging market in which the most valued form of collateral isn’t national debt denominated in your own debt but rather a commodity like gold, whose supply is dictated by externalities outside of a government’s control? Read more

Markets Live: Tuesday, 3rd September, 2013

Live markets commentary from 

The (early) Lunch Wrap

Microsoft is to buy Nokia’s mobile phone business and patents for €5.44bn || Vodafone shareholders set for $84bn payout || Li says he’s confident China will meet economic goals || Banks face new bail-in-able debt requirements || Citigroup is dialing back its ‘alternative’ holdings || Japanese government takes over Fukushima strategy || Australian retail sales disappoint || Markets Read more

The all you can eat collateral buffet

When it comes to understanding the Fed’s recently touted — but initially overlooked — fixed-rate, full-allotment overnight reverse repurchase agreement facility, Cardiff covered pretty much all the bases here.

That said, there was a great quote recently in a follow up piece with FT colleagues. Barclays’ Joseph Abate said the facility resembled an “all you can eat collateral buffet” due to the fact that the trade would provide a fully collateralised investment opportunity with the Fed to almost all parts of the financial market. Read more

The smell of burnt platforms

Although for a longer-term perspective… Read more

Further reading

Elsewhere on Tuesday,

– How will Indian exports go up?

– Savings, investments and a dose of realism.

– Did a bet on metal prices save millions of lives? Read more

The 6am Cut London

Asian stocks rise || Microsoft to buy Nokia phones business for €5.44bn || Vodafone investors set for record $84bn payout || Li confident China will meet economic goals || New bank bail-in bond requirements likely || Citi disposes of $6bn in alternative assets in a month || Private equity groups set to buy Frob-owned EVO Banco || US hedge funds criticise Co-op Bank || Japanese government takes over Fukushima plan  Read more