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.
Wednesday, April 8, 2009
Monday, March 9, 2009
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
Wednesday, March 4, 2009
Fed and Treasury launch $1,000bn Talf plan
The FT reports that no longer placing limits on executive compensation has generated more interest in the term aset backed securities loan facility (Talf)
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