Silver as an investment

Category Archives: Interbank lending market

BOE Warns Weekly Fund Redemptions Of 1.3% Would Break Corporate Bond Market

The Bank of England has done some timely and truly eye-opening research into the resilience of corporate bond markets. The research is contained in the Bank of England Financial Stability Paper No.42 and is titled “Simulating stress across the financial system:  the resilience of corporate bond markets and the role of investment funds” by Yuliya […]

Hong Kong Interbank Rates Spike To Highest Since Lehman

For only the third time since Lehman, the price of liquidity in the Hong Kong Dollar interbank markets has exploded higher. Overnight HKD Hibor soared over 60 basis points to 0.71407% in Monday trading – the highest since October 2008…   Note that the two previous spikes were around year-end, so this is unusual in […]

Fed Warns “Equity Prices Are High”, Sees Low Volatility As A “Risk To Financial Stability”

While the core focus in the June FOMC minutes was on whether and when the Fed would hike next, and/or begin its balance sheet unwind (indicentally, Fed Funds futures now shows odds of another rate hike in 2017 at about 60%), what was perhaps most notable in today’s Minutes was the Fed’s repeat warning about […]

Some Chinese Banks Suspend “Interbank Business” As Regulator Demands That Collateral “Actually Exists”

With “risk” in most of the developed world seemingly a long forgotten four-letter word, as seen by today’s plunge in the VIX to a level not seen in 34 years, traders hoping for some “risk event” have been confined to the recent turmoil in China, where overnight not only did trade data disappoint, with both […]

Crisis Meet China – China Meet Crisis

By Chris at Earlier this week, Kyle Bass spoke on Bloomberg about the reckless expansion of the credit system in the Middle Kingdom. He warned about the ballooning asset-liability mismatch in the shady $4-trillion wealth management products (WMPs) market. And went on to say “this is the beginning of the Chinese credit crisis” while admitting it could take some time for things […]

Axiom: “Red Flags” Suggest China Credit Event Is “Closer Than It Appears”

Submitted by Gordon Johnson of Axiom Capital While we, as well as the few bearish peers we have, have warned of a pending “credit event” in China for some time now – admittedly incorrectly (China has proved much more resilient than expected) – the more recent red flags are among the most profound we’ve seen […]

SocGen: “The Upcoming Central Bank Reversal Can’t Be Helpful For Stocks”

Today’s post-European open ramp in the USDJPY may have boosted risk sentiment after yesterday’s sharp selloff, and lifted global equities off session lows, but for many this is “too little, too late”, with Bloomberg’s commentator Marc Breslow noting earlier that at this point “it’s a matter of when not if markets break down”, a sentiment […]

PBOC Injects Hundreds Of Billions Into Chinese Banks After Sudden Defaults In Interbank Payments

As is customary virtually every time the Chinese central bank commences some form of tightening, overnight the PBOC injected “hundreds of billions of yuan into the financial system after some smaller lenders failed to repay borrowings in the interbank market”, according to people familiar with the matter. According to a brief note by Bloomberg, Tuesday’s […]

Chinese Volatility Explodes: Yuan Tumbles Most In One Year After Biggest 2-Day Rally Ever

While China’s unprecedented currency moves have quickly become the main talking point across global markets which otherwise have started off 2017 in an eerily calm fashion, it is the sudden surge in two-way volatility that has emerged a major threat to global market stability. Case in point, the offshore Yuan fell as much as 1.1% […]

Chinese Interbank Lending Freezes; Government Bond Trading Halted After Massive PBOC Liquidity Drain

Earlier today, we were surprised to note that having aggressively drained liquidity from the interbank funding market, on the first trading day of 2017, the PBOC not only fixed the Yuan well lower (sy 6.9498 vs 6.9370 on the last day of 2016, even if this was well stronger than the Offshore Yuan), but the […]