The first LTRO repayment opportunity is fast approaching. David has already considered how it may or may not impact European lending rates, including the chances of Eonia rising significantly if the repayment is larger than expected.
Yet as we also noted, this is hardly the key concern. Read more
What we love about Bank of America Merrill Lynch’s ‘Liquid Insight’ team is that when they make calls on Treasuries and rates, they account for the impact of collateral markets and the repo effect — not to mention the general shortage of safe assets.
Take the following chart from their latest note: Read more
1Bernanke weighs in on robot wars; brings Keynes for backup
2Pump up, debase
3Further reading
4The risk of a Japanese VaR shock
5Collateral crunch-counting gets sophisticated
Show more6In which the FTSE puts the crisis behind it
7A Kazakh muddle
8Apple Operations International, facts (?) du jour
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