How To Prevent The Next 'Rush For Cash' From Destroying The Bond Market – texasredzonereport.com texasredzonereport.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from texasredzonereport.com Daily Mail and Mail on Sunday newspapers.
Preventing the
$25 trillion U.S. Treasury market from seizing up in a future
crisis, as it did at the onset of the COVID-19 pandemic, could
mean having the Federal Reserve on standby for unlimited. -Today at 11:55 am- MarketScreener
Preventing the $25 trillion U.S. Treasury market from seizing up in a future crisis, as it did at the onset of the COVID-19 pandemic, could mean having the Federal Reserve on standby for unlimited bond purchases when needed, a new analysis published Friday suggests. "US Treasuries are expected to provide excellent safe-haven services in a 'dash for cash' because of the anticipated depth and liquidity of the market in which they are traded, even during a crisis when many large investors are simultaneously liquidating their Treasuries," Stanford University business school professor Darrell Duffie wrote in a paper presented at the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming. But that didn't happen in March 2020, in large part because dealers simply did not have enough room on their balance sheets to handle the deluge of Treasury sales from investors panicked by the unknowns of a global pandemic.
How to keep the next 'dash for cash' from crashing bond market investing.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investing.com Daily Mail and Mail on Sunday newspapers.
On July 27, the three federal banking agencies (the Agencies)[1] jointly proposed changes to the regulatory capital framework applicable to large banks and bank holding companies (the Proposal).