297 posts on "Financial Markets"
June 26, 2015
From the Vault: Gauging Treasury Market Liquidity
A review of recent work on Liberty Street Economics examining liquidity in the U.S. Treasury market
June 24, 2015
Falling Oil Prices and Global Saving
The rise in oil prices from near $30 per barrel in 2000 to around $110 per barrel in mid-2014 was a dramatic reallocation of global income to oil producers.
Posted at 7:00 am in Balance of Payments, Euro Area, Exports, Financial Markets, International Economics | Permalink | Comments (1)
June 8, 2015
Is Cheaper Oil Good News or Bad News for U.S. Economy?
Oil prices have declined substantially since the summer of 2014.
Posted at 7:00 am in Exports, Financial Markets, International Economics, Macroeconomics | Permalink | Comments (2)
June 1, 2015
What Drives Buyout Booms and Busts?
Valentin Haddad, Erik Loualiche, and Matthew Plosser Buyout activity by financial investors fluctuates substantially over time. In the United States, peak years result in close to one hundred public-to-private buyout transactions and trough years in as few as ten. The typical buyout is primarily funded by debt, hence the term “leveraged buyout” (or LBO). As […]
May 27, 2015
The Eurodollar Market in the United States
In February, the Federal Reserve Bank of New York’s trading desk announced it will publish a new overnight bank funding rate early next year.
May 13, 2015
Financial Innovation: Evolution of the Tri‑Party Repo Arrangement
In our earlier post, we described how the tri-party repo arrangement was a clever way to reduce the costs and risks that individual firms faced when settling bilateral repos.
May 11, 2015
Financial Innovation: The Origins of the Tri‑Party Repo Market
The conventional wisdom about financial innovation is that it is typically undertaken as a way to increase profits.
April 15, 2015
Please Read This before Betting against Government Bond Betas
Mounting evidence says that “low-risk” investing delivers superior returns, comparable to strategies based on value, size, and momentum.
April 8, 2015
The FR 2420 Data Collection: A New Base for the Fed Funds Rate
On April 1, 2014, the Federal Reserve began collecting transaction-level data on federal funds, Eurodollars, and certificates of deposits from a large set of domestic banks and agencies of foreign banks operating in the United States. Previously, the Fed had only received fed funds and Eurodollar data from major brokers, and not directly from the banks borrowing in these markets. These new data, collected on form FR 2420, have helped the Fed better understand activity in the fed funds and Eurodollar markets. In this post, we focus on the new data on fed funds, in light of the Federal Reserve Bank of New York’s Trading Desk announcement that it plans to use these data to calculate and publish the fed funds effective rate.
From the Vault: Separating News and Noise … and Jokes
Tesla Motors’ shares saw a brief bounce from a far-out and fictional product (a smart watch) announced as part of an April fool’s prank. While markets evidently made quick sense of the joke, that’s not always the case.
Posted at 12:40 pm in Financial Markets | Permalink
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