299 posts on "Financial Markets"
September 6, 2017
What Drives International Bank Credit?
A major question facing policymakers is how to deal with slumps in bank credit.
Posted at 7:00 am in Bank Capital, Banks, Credit, Crisis, Financial Markets, International Economics | Permalink
August 9, 2017
Investor Diversity and Liquidity in the Secondary Loan Market
Over the last two decades, the U.S. secondary loan market has evolved from a relatively sleepy market dominated by banks and insurance companies that trade only occasionally to a more active market comprising a diversified set of institutional investors, including collateralized loan obligations (CLOs), loan mutual funds, hedge funds, pension funds, brokers, and private equity firms.
August 7, 2017
Regulatory Incentives and Quarter‑End Dynamics in the Repo Market
Since the global financial crisis, central bankers and other prudential authorities have worked to design and implement new banking regulations, known as Basel III, to reduce risk in the financial sector. Although most features of the Basel III regime are implemented consistently across jurisdictions, some important details vary.
June 28, 2017
Market Liquidity after the Financial Crisis
The possible adverse effects of regulation on market liquidity in the post-crisis period continue to garner significant attention.
June 19, 2017
Introducing the Revised Broad Treasuries Financing Rate
The Federal Reserve Bank of New York in cooperation with the Office of Financial Research is proposing to publish three new overnight Treasury repurchase (repo) benchmark rates. Recently, the Federal Reserve decided to modify the construction of the broadest proposed benchmark rate (the other two proposed rates are expected to remain unchanged; see the Bank’s announcement on May 24). In this post, we describe the changes to this rate in further detail. We compare this revised rate to the originally proposed benchmark rate and show that, in the post-liftoff period, it trades higher, on average.
May 24, 2017
Dealer Balance Sheets and Corporate Bond Liquidity Provision
Regulatory reforms since the financial crisis have sought to make the financial system safer and severe financial crises less likely.
May 12, 2017
At the N.Y. Fed: The Evolution of OTC Derivatives Markets
The 2007-09 financial crisis illustrated the fragility of over-the-counter (OTC) derivatives markets and the contagion generated through bilateral derivatives exposures.
January 18, 2017
Advent of Trade Reporting for U.S. Treasury Securities
Greater transparency is coming to the U.S. Treasury securities market. Members of the Financial Industry Regulatory Authority (FINRA) will be required to report their trades in Treasuries using FINRA’s Trade Reporting and Compliance Engine (TRACE) starting July 10, 2017. Although initial collection efforts are focused on providing such data to the official sector, the public will likely have access in the future. In this post, I discuss the motivation for such reporting, how it came to be decided on, and the evidence from the corporate bond market on how public access to such data affects trading costs.
Posted at 7:00 am in Financial Markets | Permalink
January 11, 2017
Credit Market Arbitrage and Regulatory Leverage
In a companion post, we examined the recent trends in arbitraged-based measures of liquidity in the cash bond and credit default swap (CDS) markets.
January 9, 2017
Trends in Arbitrage‑Based Measures of Bond Liquidity
Corporate bonds are an important source of funding for public corporations in the United States.
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