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Under-reported by who? Virtually everyone I know has been watching the Fed / FFR and the rate-hike news because it affects things like long-term treasuries very
by dragontamer 4y ago
Under-reported by who? Virtually everyone I know has been watching the Fed / FFR and the rate-hike news because it affects things like long-term treasuries very significantly.
The FFR going from 0% to 4.5% over the last year is probably the biggest, most important (and definitely well reported) piece of news... and constantly makes front-page material on most financial newspapers I've been reading.
The idea that this is somehow "underreported" is... odd... to me. The amount of commentary on rising interest rates, federal fund rates, hawks in the Fed, inverted yield curves and more suggests that the public is hyper-aware of this and the implications.
- Octokiddie 4y agoI should have phrased it differently. The potentially large unrealized capital losses on UST sitting on bank balance sheets has been under-reported. Banks are both required to hold UST and not always required to mark-to-market. This interest rate move has been massive relatively speaking, leaving some number of banks in a terrible capital position, just waiting for a disturbance (like the FTX implosion) to trigger run-like conditions. This story sketches a problem that hopefully doesn't start to gather steam: https://www.axios.com/2023/03/04/why-some-banks-are-heading-toward-insolvency https://www.axios.com/2023/03/04/why-some-banks-are-heading-...