Just Released: The U.S. Treasury Market on October 15, 2014
The $12.7 trillion U.S. Treasury market plays a critical role in the global economy, serving as the primary means of financing the U.S. government, a risk-free benchmark for other financial instruments, and a key venue for the Federal Reserve’s implementation of monetary policy.
What Do Bond Markets Think about “Too‑Big‑to‑Fail” Since Dodd‑Frank?
As we discussed in our post on Monday, the Dodd-Frank Act includes provisions to address whether banks remain “too big to fail.”
From the Vault: Gauging Treasury Market Liquidity
A review of recent work on Liberty Street Economics examining liquidity in the U.S. Treasury market
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.
Is Cheaper Oil Good News or Bad News for U.S. Economy?
Oil prices have declined substantially since the summer of 2014.
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 […]
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.
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.
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.
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.