By: lmwillys on Venerdì 04 Febbraio 2011 11:10
vabbè, oggi esagero un altro post economico
la fed ormai galoppa, è arrivata ad oltre 1131 miliardi di dollari tra bills, notes, bonds e tips http://www.ny.frb.org/markets/soma/sysopen_accholdings.html
cinesi e giapponesi sono ormai ben distanziati http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
col QE2 la fed dichiarava 600 miliardi di 'acquisti' ai quali bisogna aggiungere circa 300 di altri 'acquisti' con gli interessi dalle agencies http://www.newyorkfed.org/markets/opolicy/operating_policy_101103.html
finora sono a circa 250 miliardi da novembre, di questo passo per la fine dell'estate la fed deterrà l'equivalente di Cina e Giappone messi insieme
un articolo del financial times, i comunicati http://www.newyorkfed.org/markets/rrp_counterparties.html
NY Fed to expand reverse repo requirements
By Michael Mackenzie in New York
Published: February 1 2011 20:16 | Last updated: February 1 2011 20:16
The Federal Reserve Bank of New York announced on Tuesday that it would accept the participation of money market funds with lower assets under management in the central bank’s future efforts at draining cash from the financial system.
The New York Fed said in a statement that money market funds with $5bn of net assets under management for the past six months, down from a previous requirement of $10bn, could apply to become “reverse repurchase” counterparties with the central bank. A money-market fund can also place a minimum bid size of $500m with the Fed, down from a previous $1bn requirement.
In what is known as a reverse repo, the central bank sells assets such as Treasury securities to dealers for cash, with an agreement to buy them back later at a slightly higher price. In the process, bank reserves are drained from the financial system.
When the Fed starts to drain liquidity from the banking system, it will conduct reverse repos. Since the financial crisis, bank reserves at the Fed have grown sharply to more than $1,000bn and reverse repos are seen halting this money from entering the broad economy and potentially fuelling an inflationary surge.
The Fed has sought to expand the number of counterparties beyond its network of 18 primary dealers so that it can smoothly drain its massive amount of excess bank reserves when the time comes.
“It makes sense for the Fed to cast as wide a net as possible so they can successfully drain liquidity,” said George Goncalves, head of fixed income research at Nomura Securities.
The Fed can use reverse repos, pay interest on the bank reserves and/or sell securities in order to soak up excess cash in the system. Since late 2008, the Fed has maintained a zero interest rate policy and is not expected to raise rates until 2012 at the earliest.
Before rate rises, the Fed is expected to start draining cash from the system. It conducted tests of the reverse repo system with counterparties last year.
The change in eligibility standards comes after the New York Fed added 32 new money market funds as potential new counterparties for reverse repos to its list on Monday. On the Fed list there are 21 firms that together hold 58 funds that are currently eligible for transacting in reverse repos.