In the wake of the financial crisis, banks around the world faced stricter rules regarding capital requirements in certain asset types as regulators took measures to reduce systemic risk in the banking sector. Synthetic Risk Transfers (SRT) are derivatives that enable banks to transfer credit risk on a bundle of loans and pays a feeContinue reading “Synthetic Risk Tranfers – July 2024”
Tag Archives: federal reserve
Reverse Repo and Bailouts – April 2023
By 2022, money market funds have deposited $1.7trn in the fed’s overnight reverse-repo facility. They agree to buy a security from the fed and resell it back later at a given price (usually higher). But the rates on overnight transactions have jumped from 0.05% in February 2022 to 4.8% today, offering better rates and higher-qualityContinue reading “Reverse Repo and Bailouts – April 2023”
Thoughts on Inflation – October 2021
The United States Bureau of Labor Statistics reports the Consumer Price Index (CPI) monthly and is probably the most widely used gauge of inflation. It takes surveys from people in urban areas and compiles them into a report. But there are different measures for inflation, one that might be more accurate than the CPI isContinue reading “Thoughts on Inflation – October 2021”
Devlin Demontigny 