[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 321 KB, 1079x1850, Screenshot_20230313-065022.png [View same] [iqdb] [saucenao] [google]
54100612 No.54100612 [Reply] [Original]

I've figured out this reverse repo market explosion. Everyone saw this interest rate issue coming that took down Silicon Valley Bank where long dated assets decrease in value. So the fed essentially turned the reverse repo market into a money market fund where instead of buying long dated treasuries with huge interest rate risk the fed started allowing eligible orgs to do reverse repos that pay the same rate with none on the term length risk. It's currently paying 4.5% annualized and the term length is 1 day to 1 week.. so it was like a huge hidden give away. Thoughts?

>> No.54100826

Yeah, maybe

>> No.54100949

>>54100612
Yes. Is there a question?

>> No.54100977

How to profit from this information?

>> No.54101048

It keeps the curve inverted.

>> No.54101355

Pretty much. 2T that was too precious to risk on anything, even with bond yields at a decade high. They expected 1 in the wreckage (brother) but seems like a whole plane is going down (in an extremely painful way).

>> No.54101841

>>54100612
>So the fed essentially turned the reverse repo market into a money market fund where instead of buying long dated treasuries with huge interest rate risk the fed started allowing eligible orgs to do reverse repos that pay the same rate with none on the term length risk.
Evidence?
Source?
Link?