Federal Reserve

Are remaining G-SIB shortfalls of Basel III capital more problematic than it seems?

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At an eight month lag to the base reported data it is based on, BCBS's half yearly Basel III monitoring report was published recently looking at banks' progress towards meeting Basel III capital and liquidity rules.  On the surface the report seems to have a pretty positive message. Reading between the lines and combining with other information there is a more interesting story behind the numbers on what it will take to meet the minimum ratios.  

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TABB Fixed Income Conference: tackling reduced trading liquidity in corporate bonds and OTC

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Following January 2014's TABB Fixed Income conference: "BREAKING RATES", the Thursday January 29th TABB conference "PERFECT STORM NAVIGATING THE CONFLUENCE" held promise of answering the question of whether the market has dealt with the marked withdrawal of dealer market making capacity from the cash and derivatives markets in response to Basel III constraints.
 
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Measuring Global Bank Complexity | Federal Reserve Bank of New York

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I came across one item in a series from the NY Fed on bank complexity - the charts demonstrate an aspect of Banks which we often overlook - that they contain many affiliates as a result of SPVs, or for other commercial purposes. The introduction to the piece says:

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Does Basel III create buy side liquidity risk? | IFR Article

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IFR produced another article bemoaning the liquidity problems in the secondary credit bond market.  An illustrative statistic is bank inventory: 2007 US$235bn; now "a mere" US$37bn.  Aside from the day-to-day market liquidity challenge, have regulatory capital rules indirectly created a significant increase in buy side liquidity risk?

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"Fixed rate full allotment reverse repo will become the Fed’s central policy tool" | Barclays research note

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"We believe that the fixed rate full allotment (FRFA) reverse repo will become the Fed’s central policy tool" says Barclays Joe Abate in a research note last Friday.  I'm wondering if a Fed monetory policy shift from Fed Funds to FRFA rates will also prompt the shift of interest rate benchmarks from unsecured to secured funding rates.

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DB adjusts legal structure | Fed intermediate holding company rules

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FT reported (subs. required) and Reuters re-reported (free) that Deutsche Bank (DB) is adjusting its structure to curtail US balance sheet and the associated capital redundancies introduced by the new Fed intermediate US holding company rules.

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Weekly Roundup | Collateral Management | 4 November 2013

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The Bank of England May Have Gotten into the Collateral Transformation Business…Will the Fed Follow?

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Is FARP a taper alternative? | Fast start for the new Fed facility

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The apparently fast start (Monday) of the Fed's FARP - coming just after the unexpected announcement not to taper - has caused some to speculate this is an alternative to the taper.  But is it?

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