My lecture notes suck
I figured out how to save my lecture notes as a PDF file. Here they are from Wed, March 26. Will someone please tell my department chair and dean that I need to be removed from the classroom?
March 27, 2008
March 21, 2008
TSLF, AAA, RMBs, CMOs and CMBs
From Real Time Economics (New York Fed Unveils TSLF Terms):
The Federal Reserve Bank of New York announced the terms of its first Treasury swap auction set for March 27, indicating that it will offer $75 billion in government securities to the primary dealer banks and modifying the type of collateral it will accept in return.
The Term Securities Lending Facility, announced in early March, is an extension of an already existing facility at the New York Fed. Under the extended facility, primary dealers not only can offer a broader range of collateral against Treasury securities, they can also borrow for a longer term — 28 days versus overnight.
In total, the New York Fed has been authorized to lend up to $200 billion of Treasury securities through TSLF auctions. TSLF, the Fed’s latest tool to help revive strained financial markets, was created last week and will supply banks with scarce Treasury securities in exchange for less-liquid securities.
Market participants hope the new tool with help to ease conditions in strained securities repurchase markets and curb investors’ mad dash for cash. ...
March 17, 2008
More unusual monetary policy
The Fed's Press Release:
The Federal Reserve on Sunday announced two initiatives designed to bolster market liquidity and promote orderly market functioning. Liquid, well-functioning markets are essential for the promotion of economic growth.
First, the Federal Reserve Board voted unanimously to authorize the Federal Reserve Bank of New York to create a lending facility to improve the ability of primary dealers to provide financing to participants in securitization markets. This facility will be available for business on Monday, March 17. It will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment-grade debt securities. The interest rate charged on such credit will be the same as the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.
Second, the Federal Reserve Board unanimously approved a request by the Federal Reserve Bank of New York to decrease the primary credit rate from 3-1/2 percent to 3-1/4 percent, effective immediately. This step lowers the spread of the primary credit rate over the Federal Open Market Committee’s target federal funds rate to 1/4 percentage point. The Board also approved an increase in the maximum maturity of primary credit loans to 90 days from 30 days.
The Board also approved the financing arrangement announced by JPMorgan Chase & Co. and The Bear Stearns Companies Inc.
Here is what the WSJ's Morning Report is saying:
Crazy world.
March 11, 2008
The Fed's fourth monetary policy tool
The Fed uses the Term Auction Facility:
In another global show of financial force, the Federal Reserve and four other central banks announced significantly expanded loans of cash and securities to banks and securities dealers in an effort to alleviate growing strains in the credit markets.
From the WSJ Economics Blog: Fed's Smartest Move.
February 28, 2008
hypo-nation hearts wilco
dude: (although i am decades behind the hip-and-with-it, my recent discovery of this new show "lost" -- maybe you have heard of it -- has led me to adopt hugo-esque conversation style) the hypo-nation loves wilco, who will be on saturday night live this weekend.
i, of course, will be asleep long before that.
