Wednesday, April 8, 2009

Delevaraging leads repo market into mire

Volume in both Treasury bonds in repo and corporate bonds have fallen from $3000bn around the Bear Sterns failure to $1858bn, and $245bn in July 2007 to $86bn.
Banks have reduced leverage from 30 to 10 percent.

Monday, March 9, 2009

What's under the TARP

St Louis Fed's notification of actions for TARP/TALF/housing issues

Derivatives for the rest of us

Robert Shiller would add liquidity to the housing market by creating derivatives for homeowners to hedge against home price changes