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Chart of the Week: Collateral

It’s been a week of quite righteous focus on collateral. The 4-week bill equivalent yield closes it at just 114 bps, with only three days left before the RRP “floor” is moved up by the FOMC to 125 bps.  That’s too much premium in price, though we know why given what FRBNY reported for repo fails last week.  With all that, there’s really nothing much to say about what’s below. OK, there is, but I’ll save that for next week. In the meantime, you can go back to 2013 to review the mechanics of gold as collateral-of-last-resort.

US Treasuries, Jan 2017 - Dec 2017

(see more posts on U.S. Treasuries, )
US Treasuries, Jan 2017 - Dec 2017

- Click to enlarge

Dollar Correlations, Aug 2016 - Dec 2017

Dollar Correlations, Aug 2016 - Dec 2017

- Click to enlarge

 

 

 

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Jeffrey P. Snider
Jeffrey P. Snider is the head of Global Investment Research of Alhambra Investment Partners (AIP). Jeffrey was 12 years at Atlantic Capital Management where he anticipated the financial crisis with critical research. His company is a global investment adviser, hence potential Swiss clients should not hesitate to contact AIP
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