Monetary policy
The case for draining excess reserves
The financial system can operate efficiently with $500 billion or less in reserves after normalisation
The Fed’s heavy hand on economic equality
Monetary policy and bank regulations contribute to widening US wealth gap
Fed vs Fed: central bank faces traps of its own making
Fed’s balance sheet normalisation goal set to collide with its banking system resilience aims
Basel liquidity rules block Fed’s QE exit
LCR and NSFR could produce $1 trillion shortfall in plans for balance-sheet ‘normalisation’
The impact of unconventional monetary policy shocks on the crude oil futures market
This paper examines how West Texas Intermediate (WTI) crude oil price returns and volatilities respond to changes in US monetary policy.
Taper talk drives wild swings in JSCC-LCH basis
Difference between pay-fixed yen swap rates at LCH and JSCC neared 16bp before falling 30% last week
Central banks eye advantages of digital currencies
BoE economist says digital currencies might improve real policy rates, tax rates and bank competition
Mobilization of collateral in Germany as a reflection of monetary policy and financial market developments
This paper describes and analyzes developments in the market value of marketable assets submitted as collateral in Germany and the Eurosystem against the backdrop of the financial market crisis.
Collateral flows and balance sheet(s) space
This paper looks at securities-lending, derivatives and prime-brokerage markets as suppliers of collateral.
Impact of monetary policy on collateral reuse
The authors provide theoretical microfoundations to understand the impact of monetary policy on markets characterized by collateral reuse.
Hungary central bank action ‘distorting’ swaps curve
Flooding market with cheap swaps knocks 14% off bid rate
Central banks must be 'market-makers of last resort' – IMF
Monetary policy and regulation have amplified illiquidity, says IMF official
ECB’s Mersch says macro-prudential policy is not a panacea
Executive board member says there is much to learn about how macro-prudential tools work
Currency-hedged ETF surge prompts hedging concerns
Eurozone QE programme prompts wave of investor interest
Yellen faces a logistical nightmare
The impending transition from Ben Bernanke to Janet Yellen at the US Federal Reserve is taking place at a particularly sensitive time, argues David Rowe – the new chair faces the logistical nightmare of unwinding a massive increase in the central bank’s…
Market memory and analysis key to better trading techniques
Unforgettable markets
Elkhorn Fund: Sanborn Kilcollin Partners
Fighting the Fed
Supervision not regulation, says SEB's Hansen
Rather than rushing to increase regulation and potentially creating compliance costs and regulatory risks, authorities should be getting involved at the ground level to improve supervision, says Lars Hansen, Swedish insurer SEB Life’s chief risk officer
Axa IM fixed-income head says euro collapse more inflationary than ECB printing euros
It is difficult to foresee borrowing costs for Italian, Spanish or other troubled debt falling permanently with "anything other than the ECB being used as a lender of the last resort", says Chris Iggo
Trichet bows out with new bond purchase scheme
Jean-Claude Trichet unveils a new covered bond purchase scheme; ECB governing council also agreed to hold interest rates and support Jörg Asmussen for governing council post
‘US monetary policy is abnormal and deviant’: Steve Hanke profile
Steve Hanke profile