The Federal Reserve came out with their LCR proposals today. Comments on the 100 page plus document are due back by January 31, 2014. We took a look and have…Read More
The CFTC and liquidity rules for DCOs: do they need committed repo facilities for their US Treasuries?
There is a battle brewing between the CFTC and DCOs over collateral liquidity. And its impact on repo will potentially be enormous. Continue readingRead More
This is the 2nd post on Fed Governor Jeremy Stein’s important speech at the Oct. 4th New York Fed workshop on fire sales and tri-party repo, “The Fire-Sales Problem and…Read More
An article in www.hereisthecity.com made us laugh. It was called “The 15 banking jobs that will be the most secure over the next 7 years”. Continue readingRead More
An August 22, 2013 article in Bloomberg “EU Said to Weigh Curbs on Collateral Asset Reuse in Repos” by Jim Brunsden & John Glover certainly caught our attention. Quoting from the article:…Read More
The Basel Committee on Banking Supervision has issued a discussion document on the Liquidity Coverage Ratio and disclosure standards. We’ve got some comments but also wonder, how important is this…Read More
The Fed NY report “The Risk of Fire Sales in the Tri-Party Repo Market” (May 2013) by Brian Begalle, Antoine Martin, James McAndrews, and Susan McLaughlin certainly caught our eye.…Read More
Comments on the Fed's Jeremy Stein on the Liquidity Coverage Ratio and Lender of Last Resort: a fascinating speech (Finadium subscribers only)
A speech made on April 19, 2013 by Fed Governor Jeremy Stein entitled “Finding the right balance” at the 2013 Credit Markets Symposium, sponsored by the Federal Reserve Bank of…Read More
In a speech today before the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate, Federal Reserve Governor Daniel Tarullo will outline key priorities for the Federal Reserve…Read More
Clearstream releases results of conference voting surveys (collateral transformation, negative interest rates)
At its January 2013 Global Securities Finance Summit, Clearstream conducted a series of real-time votes including audience participants on various market issues. Some of the results were expected and others…Read More
Manmohan Singh, the IMF economist, has just published a great paper on collateral, “The Changing Collateral Space”. We take a look at what he has to say. Continue readingRead More
This week’s announcements by the Basel Committee on changes to the Liquidity Coverage Ratio have been greeted with cheers and sneers, but one important aspect remains the same: the Committee…Read More
In what looks like a culmination of over a year’s worth of discussion, the Basel Committee on Banking Supervision yesterday released updates to the Liquidity Coverage Ratio that most famously…Read More
Ah, the definition of Basel III Level 1 assets continues to befuddle, complex and give rise to all sorts of shenanigans. In today’s edition of the ongoing soap opera, Reuters…Read More
The IMF has released a paper called “Assessing the Cost of Financial Regulation” authored by Douglas Elliott, Suzanne Salloy, and André Oliveira Santos. They claim the costs of new regulation…Read More
An article published by Bloomberg on August 28, 2012, written by Jim Brunsden, “ECB Said To Urge Weaker Basel Liquidity Rule On Crisis Risks“ looks at efforts to water down…Read More
Singh and Stella on the velocity of collateral: banks just don't trust each other. We think there is more to it.
A July 2, 2012 post by IMF Economist Manmohan Singh and consultant Peter Stella in the blog Vox revisits a familiar topic: the velocity of collateral. We’ve written about this…Read More
The Wall Street Journal reported on Friday that global regulators were again talking about loosening up the rules that govern the Liquidity Coverage Ratio. This is the next round of…Read More
Banks everywhere are focusing on the Liquidity Coverage Ratio (LCR) provisions in Basel III. The provisions don’t kick in until 2015, but the observation period is in full swing and…Read More
“Replumbing Our Financial System: Uneven Progress” by Darrell Duffie: turn tri-party clearing into a "dedicated regulated utility"
A recent paper authored by Darrell Duffie, Finance Professor at Stanford GSB is worth taking a look at. “Replumbing Our Financial System: Uneven Progress” was presented at the Fed conference…Read More
The IMF just released part of the Global Financial Stability Report. Chapter 3 is entitled “Safe Assets: Financial System Cornerstone?” and it has a lot to chew on. The two…Read More
A global banking regulator has said that the Basel Committee for Banking Supervision is planning to consider these same changes at its meeting on March 20-21. Finadium has released a…Read More
A new report from Finadium released today looks at the growth of corporate bonds and equities as high quality assets for bank balance sheets and as collateral. The possibility has…Read More
EU may allow European asset-backed securities to be included as liquid assets for the liquidity coverage ratio. France & Germany push for delay to 2018, much to the chagrin of the UK.
An article in Bloomberg on January 20, 2012 by Esteban Duarte caught our eye. The reporter wrote that the EU may allow European asset-backed securities (ABS) to be included as…Read More
Euromoney interview with IMF Economist Manmohan Singh on repo, re-hypothecation, collateral chains, and more
Euromoney just published an interview with IMF Economist Manmohan Singh. A link is here. Singh has written extensively on securities financing, collateral chains, shadow banking, and re-hypothecation — all things…Read More
Basel III LCR rules may change, allowing corporates and equities. Nestle debt looks a whole lot better than Portugal.
The irony of sovereign debt being used for Basel III Liquidity Coverage Ratios (LCR) yet becoming more risky by the hour from a credit perspective is coming home to roost.…Read More
There have been a handful of articles in recent days about UK regulators scrutinizing collateral upgrade trades. One issue the FSA seems to be concerned about is the ability of…Read More
The IMN 16th Annual European Beneficial Owners Securities Lending Conference was held earlier this week in London. The conference was well attended with numerous lenders, dealers, technology vendors, and consultants…Read More
Basel Committee's Walter dismisses reports of Liquidity Coverage Ratio (LCR) overhaul – Risk Magazine
The Basel Committee is working on criteria to decide what counts as a liquid asset, but secretary general says no decisions have yet been taken on how – or whether…Read More