Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (8564)	12/12/2007 10:51:22 AM
From: Moominoid	Respond to of 33421

Also I wonder if it means the FEd will hold off doing more cuts until they see how the whole program works - but I guess that would be about the time of the next meeting anyway... I'm not surprised the market is selling off, this doesn't really seem such a big of a deal to me given the repo activity and expanded collateral that they already are doing. Guess it was what shorts feared more than longs looked for. Several banks like Citigroup were down early on in the session.... long day ahead so maybe I'm wrong that this is mostly PR rather than substance.

To: John Pitera who wrote (8564)	12/12/2007 12:58:21 PM
From: ahhaha	Read Replies (1) \| Respond to of 33421

Bank's can submit there more opaque collateral and use it to Borrow State of the art, Not quite. Collateral must be transparent and the poster must be registered and "okayed" by their local fed reserve bank. The collateral will be opaque to the open market, but it must pass muster wrt local fed reserve bank. And then the banks get these sterling CDO's and other exotic securitization products back, very hopefully to resubmit to the TAF, a few days later at the next auction to get back that high octane Central Bank credit. You bring up a good point and why the TAF must emphasize its "T". Beyond a doubt this weak point will be raised during the submission for public comment. Sterilization of non-marketable loans could develop into a rollover problem, and that could become a bigger problem especially since the places of loan origination have substantially different risk/return profiles.

To: John Pitera who wrote (8564)	12/12/2007 8:57:06 PM
From: rich evans	Read Replies (1) \| Respond to of 33421

The NY FED site lists temporary operations and includes agency and mortgage backed debt. The dealers use the SLO services, it says. But I think any Bank in the Fed system can use the temp window. Here is the data for today: Deal Date: Wednesday, December 12, 2007 Delivery Date: Wednesday, December 12, 2007 Maturity Date: Thursday, December 20, 2007 Type of Operation1: Repo Settlement: Same Day Term of Operation2: 8 Days Operation Close Time: 09:40 AM Results Amount ($B) Rate (%) Collateral Type Submitted Accepted Stop-Out3 Weighted Average4 High Low Treasury 17.300 12.124 4.00 4.066 4.26 3.70 Agency 22.750 7.876 4.29 4.305 4.31 4.14 Mortgage-Backed 24.750 0.000 N/A N/A 4.32 4.19 Total 64.800 20.000