To: Mike McFarland who wrote (375 ) 4/3/2020 2:42:04 PM From: Mike McFarland Read Replies (1) | Respond to The Fed exempted Treasuries and deposits from banks’ supplementary leverage ratio (SLR), and that’s set to stoke debt trading and make Treasuries more appealing versus derivatives -- a dynamic that would widen swap spreads and potentially turn them positive across maturities. finance.yahoo.com markets.businessinsider.com federalreserve.gov The FIMA Repo Facility will allow FIMA account holders, which consist of central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York, to enter into repurchase agreements with the Federal Reserve. In these transactions, FIMA account holders temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions. ----------------------- My simplistic take these past weeks is that all this money is going to be inflationary, the dollar goes down, interest rates should eventually go up. With the whole world trading cash and debt and fleeing to safety right now, who knows how low U.S. rates can go, but it is all pretty amazing to watch. The idea I had was to trade this ETF idea and wait for rates to bounce--and they may yet do this after the virus is spent--in a few months, in a year? Anyway, the one ETF that has some volume is this 3x 20-year bear--TMV and right now it is ask $4.84 x 4000 so I could buy some of that. It did make a run from $5 to 8, but then rates trended down again--especially today. Maybe that has to do with Friday nerves too. It might yet be awhile before we hit rock bottom--zero percent rates? And what about all that news I've linked to above. This might be too far above my level of understanding to fool around at all. fwiw, I've been in cash for many years and haven't dabbled in any of this--even through the real estate market crash. I just thought it might be fun to do a few daytrades, but we shall see.
