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It’s Not QE, it’s a Very Naughty OMO

Just reposting my Twitter thread from earlier on Friday for the benefit of those who don’t necessarily check in on social media too regularly: THREAD: I really think the market's got the whole Gilt panic thing wrong. If you actually read the BoE market notice for this week's gilt purchases you will see this is […]

Changes to Intraday Funding Plumbing are Coming Sooner Than You Think

Subscribers of my weekly newsletter will know that I’ve been working on a multi-part series about the nature of our intraday funding systems for weeks now. And yes, I’ve been over promising and under-delivering on its publication for a while. One of the reasons for the delay is that the piece has massively grown in […]

This Week’s Gilt Moves are Probably Linked to Intraday Funding Failings

When it became apparent this week that LDI entities, such as insurers and pension funds, would need a large chunk of cash very quickly so as to not default on hedges… how do you think the story went down in money markets? Because, yes, defaulting on counterparts is bad.  But in a cleared system, the […]