The sum and substance, in a couple of slides:
HQC stands for “High Quality Collateral”, and FTQ is “Flight to Quality”. Click to enlarge.
The charts are from a special presentation included in the fiscal Q2 report by the Treasury Department’s Office of Debt Management. Read more
Are you a bank agonising over whether to keep your triple A-rated covered bonds as part of your liquidity buffer or send them to the European Central Bank? Not sure what to do with your AA-rated non-financial euro corporate debt?
Then you need this handy table from BofAML’s structured finance guru, Alexander Batchvarov. Read more
Back in September, the FT reported an interesting estimate by JP Morgan.
Twenty-eight European banks would have faced a total liquidity shortfall of €493bn at the end of 2010, if they had been forced to meet new liquidity requirements (which actually come due in 2015) then and there. Read more
So. This is an interesting chart:
Fails to deliver — to the moon!
By Jove, Krugman was right!
Even if that assessment springs from lips of Paul Krugman himself, we have to say the evidence increasingly seems to confirm it. Read more