While mortgage lenders have tightened their wallets since 2008, corporations have been borrowing with abandon, abetted by trillions of dollars
in central bank liquidity and investors searching for yield they can no longer find in government bonds or money markets.
Retained issues are not placed in capital markets, but kept on the issuer's balance sheet for collateral purposes
in central bank liquidity operations.
Not exact matches
The chief executive officer of Greece's largest lender expects that the emergency
liquidity assistance given by the European
Central Bank (ECB) will end
in 2018.
As a result, primary dealers are the most influential non-governmental players
in global financial markets, which is why they supposedly must meet certain
liquidity and quality requirements and provide
central banks with analysis and market intelligence on the state of the worldwide markets.
The
central bank said
in a statement it was providing funds to support Promsvyazbank «s
liquidity and would send
in temporary administrators.
Goldman Sachs said
in a note last week that factors including weaker economic activity, lower - than - expected headline inflation, continued tightness
in liquidity conditions and subdued global activity and dovish
central banks around the world could push the RBI to ease its policy.
By late - morning
in London, the dollar was 3.7 % higher against it at 63.12, although the move was exaggerated by the fact that neither the Russian
central bank nor big Russian corporates, which have been instructed to provide dollar
liquidity to the local market were
in the market due to the Orthodox Christmas holiday.
Net new loans surpassed the previous record of 2.51 trillion yuan
in January 2016, which is likely to support growth not only
in China but may underpin
liquidity globally as major Western
central banks begin to withdraw stimulus.
Its coincident move to support
liquidity in China nevertheless can be seen as complementary to the efforts of the other
central banks.
The European
Central Bank (ECB) stopped all payments by one of Latvia's largest lenders on Monday, after its
liquidity position collapsed
in the wake of allegations from U.S. authorities.
Recent price swings
in credit markets are «a wake - up call that
central banks are withdrawing
liquidity, and that the process is not going to be smooth,» Adam Richmond, Morgan Stanley's head of US credit strategy, wrote
in a client note.
By providing
liquidity to the broader eurozone (
in the form of its monthly bond - buying program), the European
Central Bank (ECB) is helping to limit the scale and duration of any contagion related to events
in Greece.
In a statement on October 20, 1987, Fed Chairman Alan Greenspan said, «The Federal Reserve, consistent with its responsibilities as the Nation's
central bank, affirmed today its readiness to serve as a source of
liquidity to support the economic and financial system» (Carlson 2006, 10).
It will «flexibly use various monetary policy tools» to keep appropriate
liquidity and reasonable credit growth, the
central bank said
in a statement Tuesday after a quarterly committee meeting.
«
Liquidity,»
in fact, is THE watchword now
in bond trading — ironic, considering that the U.S.
central bank's primary intention has been to boost the flow of cash through financial markets, drive a push toward riskier assets like stocks and corporate credit, and thus generate a wealth effect that would spread through the economy.
Banks are relying on the short end of the curve for much of their funding, which has been facilitated by the influxes of liquidity provided by the central banks, but challenges remain in the mid - to longer
Banks are relying on the short end of the curve for much of their funding, which has been facilitated by the influxes of
liquidity provided by the
central banks, but challenges remain in the mid - to longer
banks, but challenges remain
in the mid - to longer end.
In response, the Fed reduced the federal funds rate to essentially zero by mid-December, instituted swap lines to provide dollar
liquidity to foreign
central banks, added new
liquidity facilities to target specific sectors of the shadow
banking system and began to expand its balance sheet through asset purchases.
But, over time, the longer
central banks create
liquidity to suppress short - run volatility, the more they will feed price bubbles
in equity, bond, and other asset markets.»
If, on the margin,
liquidity begins to decline
in 2018 resulting from QT, fed rate hikes and other
central banks ending their QE programs, there is a reasonably high probability that risk assets will suffer.
Right now, capital markets are swimming
in an ocean of
liquidity thanks to
central banks flooding the system.
US treasury bond yields could rise sharply
in 2018, as
central -
bank liquidity begins to recede and heavy new supply hits the market.
Joseph Stiglitz recently acknowledged that instead of helping the global recovery, the «flood of
liquidity» from the Fed and the European
Central Bank is causing «chaos»
in foreign exchange markets.
Given moral hazard concerns, regular
liquidity - providing activities are likely to remain
central banks» main line of defence
in stressed environments.
Because time is of the essence, and because during negotiations the
central bank was squeezing
liquidity [on Greek
banks]
in order pressurise us,
in order to succumb, my constant proposal to the Troika was very simple: let us agree on three or four important reforms that we agree upon, like the tax system, like VAT, and let's implement them immediately.
However, the Reserve
Bank's
central position
in the financial system, and its position as the ultimate provider of
liquidity to the system, gives it a key role
in financial crisis management.
We think greater global
central bank - generated
liquidity will be a positive for the corporate credit sectors and economically driven parts of the market, at least
in the near - to - medium term.
It does this
in several ways, including through its
central position
in the financial system and its role
in managing and providing
liquidity to the system, and through its chairmanship of the Council of Financial Regulators, comprising the Reserve
Bank, APRA, the Australian Securities and Investments Commission and Treasury.
In addition to near zero interest rates, central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive liquidity is now circulating in markets with no place to go, akin to moribund monetary edem
In addition to near zero interest rates,
central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive
liquidity is now circulating
in markets with no place to go, akin to moribund monetary edem
in markets with no place to go, akin to moribund monetary edema.
The 2008 financial crisis saw interest rates
in the UK fall to historical lows of 0.50 percent
in March 2009, as the
central bank went all out to help the UK economy recover from the global
liquidity crunch.
Again, when risk - aversion kicks
in during the completion of a market cycle,
central bank liquidity does not reliably support stocks, because safe
liquidity is seen as a desirable asset rather than an inferior one.
In particular, the Chinese
central bank has been making headlines and disturbing the «easy money fan club» by daring to slow the growth of aggressive lending within the Chinese financial system by limiting
liquidity growth to the financial system as a whole.
In light of his refusal to carry out the duties of a central bank and act as lender of last resort when Greek banks run out of cash, Mr. Varoufakis has said that: «If necessary, we will issue parallel liquidity and California - style IOU's, in an electronic for
In light of his refusal to carry out the duties of a
central bank and act as lender of last resort when Greek
banks run out of cash, Mr. Varoufakis has said that: «If necessary, we will issue parallel
liquidity and California - style IOU's,
in an electronic for
in an electronic form.
Central bank bond - buying measures
in most of the world have helped to increase
liquidity, support asset prices, and smooth volatility.
In recent years,
central banks have used quantitative easing to inject more
liquidity ostensibly into the economy.
There's no shortage of factors to weigh as the Fed stands ready to hike interest rates faster than anticipated on worrying signs of inflation growth and the tap of foreign
liquidity supporting 10 - year Treasuries could dry up as
central banks in Europe and Asia curb their quantitative easing programs.
In the last week, the United States Federal Reserve Bank gave a total of $ 3.306 billion in liquidity to the European Central Ban
In the last week, the United States Federal Reserve
Bank gave a total of $ 3.306 billion
in liquidity to the European Central Ban
in liquidity to the European
Central Bank.
-- For now, the press is reporting that
central banks are mulling dollar supply via bilateral swap lines
in the case of a
liquidity squeeze upon a «no» vote.
Global economies and markets have been supported
in the last nine years by a succession of
liquidity injections by global
central banks, increasing overall access to financing and lowering investors» risk - aversion.
The world's
central banks have been busy adding
liquidity to the financial system, which provides the backdrop for a Minsky Moment for complacency
in the realm of ZIRP creates instability below the surface.
U.S. rates are higher than those
in Europe and Japan and the
liquidity provided by foreign
central banks has been used to buy the U.S. 10 - year note.
The remainder of the developed world equity markets have not fared as well even as its
central banks have been very involved
in creating new rounds of
liquidity and driving their lending rates into negative territory.
Global economies and markets have been supported
in the last nine years by a succession of
liquidity injections by global
central banks, increasing overall access to financing...
Step 1 is really the most basic and traditional element of
central banking, as
liquidity, broadly speaking here, is currency elasticity
in its more...
One component I have already mentioned: the
central bank's role
in liquidity management.
We also need to remember that
in the
central bank driven monetary expansion from 2009 to present, it has been estimated that close to $ 4 trillion
in liquidity flowed into emerging markets
in the hunt for higher returns.
This is a break from recent years, when many asset classes rode a wave of
central bank liquidity and moved
in near lockstep.
The agency said it did not believe the
central bank hiking its late -
liquidity window rate last week would be sufficient to bring down inflation to the state - lender's 5 percent target or reduce the volatility
in Turkey's real effective exchange rate.
In other words, financial institutions rely on the fiat currency - generating machine known as the
central bank to shore up
liquidity when times get tough.
A reduction
in treasury bills confirms less pressure on the domestic economy as the
Central Bank is not
in a haste to mob up
liquidity.
«The message to families and to businesses is that, as our
central banks are already doing,
liquidity will be assured
in order to preserve confidence and stability,» he told reporters after the mini-summit.