whatok

23 ms·

181.
by whatok 7y ago
The physical device (B-Unit) is typically used for remote access without the keyboard. Subsequent logins post initial setup are either through the keyboard biometrics or the B-Unit and most are using the keyboard. Normal login process is us
182.
by whatok 7y ago
Companies are borrowing because rates are low and Treasury curves are flat. Why not borrow? It's much better to lock in long-term financing now so if/when liquidity dries up you aren't forced to roll over short-dated debt.
183.
by whatok 7y ago
How much of corporate debt should have gone to households instead? At what rates?
184.
by whatok 7y ago
It's not a material amount vs overall outstanding market and a majority of the holdings are in higher quality, short-dated bonds that will likely be paid at maturity long before any credit stress is seen. Corporate treasurers are not i
185.
by whatok 7y ago
The BoJ does not own 9.78% of SOFTBK; the Master Trust Bank of Japan does. Here is their website: https://www.mastertrust.co.jp/ I don't know much about them but from a brief look they look comparable to BNY Mellon.
186.
by whatok 7y ago
Issuance should be roughly equal to holdings for retail investors in Japan as the market for those only exist because JGBs pay nothing. I think if both of those went under it looks extremely bad but SoftBank Group gets a dividend from the S
187.
by whatok 7y ago
Any debt is bad if not managed properly. I don't think buying a house makes sense in all circumstances and that largely depends on where you're living and what you do for work. Being debt-free might feel good but you miss out on a
188.
by whatok 7y ago
Businesses need cheap labor from outside of the US because everyone in x industry is using cheap labor that has an artificial ceiling due to years of unchecked illegal immigration. Competition in x industry is now centered around this new l
189.
by whatok 7y ago
There is a perception that they hired tech employees just to show "growth" and therefore people haven't really done much real work.
190.
by whatok 7y ago
Yes. A lot of discussion here seems to be very academic vs how things play out.
191.
by whatok 7y ago
Or you could just look at what happened with WeWork employees as a recent example. I don't see why anyone (especially in your 20s with significant net worth tied up) would hold onto this once the lock is up.
192.
by whatok 7y ago
You can have an "investment horizon" of whatever arbitrary time period you want to make up but if your companies continue to lose money and continue to require additional capital raises just to operate, your "investment horiz
193.
by whatok 7y ago
They sold their entire stake in NVidia early this year and the total amount paled in comparison to the amount of losses/capital injections they did on WE.
194.
by whatok 7y ago
https://twitter.com/alialsalim/status/1189884241523412993 "Watch Softbank chief Masayoshi Son fall asleep during a panel at the Future Investment Initiative in Saudi yesterday..."
195.
by whatok 7y ago
This is nowhere near market moving information.
196.
by whatok 7y ago
Startups aren't going out of business because they don't have a place to work from. They'll go out of business when funding dries up because valuations are in question now.
197.
by whatok 7y ago
Note how I only focused on your assertion that 36bps "does not make a big difference". That is a strong opinion that is not based on market reality and also has several incorrect assumptions baked into it. Based on continued refe
198.
by whatok 7y ago
I don't think banks not trusting Treasuries as collateral has ever been raised this week. Banks simply do not have the liquidity to finance transactions in the repo market right now.
199.
by whatok 7y ago
Solvency = credit risk in this case. If my counterparty doesn't pay me back, I can just liquidate the collateral which in this case are Treasuries. Given that these are overnight transactions, I'm probably not exposed to too much
200.
by whatok 7y ago
There's no need to get sarcastic about things. If I said at work what you posted about 36bps not mattering I would get fired on the spot. It shows a fundamental lack of understanding of the topic but for whatever reason you are asserti
201.
by whatok 7y ago
Your last sentence leads me to believe that you are unfamiliar with the normal operations of firms involved in these markets. There is a lot of leverage in repo financed trades and 36bps absolutely does make a difference.
202.
by whatok 7y ago
The reason why they're doing that is because they need to restore confidence to the market. The absolute worst thing the Fed could do is do what they did this week, say everything is all good, and then something even worse happens in t
203.
by whatok 7y ago
Few thoughts: An increase in ON repo was expected but the magnitude of it was not. What makes the most sense is that there was a large amount of leverage that was dependent on rolling ON repo financing. Reserves are not as abundant as thoug
204.
by whatok 7y ago
It was this: https://go.bloomberg.com/attend/invite/bloomberg-odd-lots-va... I'm not sure if it was actually recorded or not.
205.
by whatok 7y ago
Because those reserves are locked up for regulatory reasons and they're also not evenly distributed.
206.
by whatok 7y ago
Anything Zoltan on money markets is highly recommended. I think Bloomberg had him live at some event last night that was recorded.
207.
by whatok 7y ago
No one is saying that paying more for a short period of time is going to destroy the financial system. However, if this does continue for a longer period of time, many cannot afford to finance at these rates and it also shows that the Fed h
208.
by whatok 7y ago
Agreed. This happened under a relatively calm market. People get closed out and this gets way worse when markets are more volatile.
209.
by whatok 7y ago
One of the problems is intraday liquidity. Long story short, financial regulations and Treasury supply have forced banks into holding securities that are unable to provide intraday liquidity. It's very hard to have a repo spike like th
210.
by whatok 7y ago
This is a better publicly available recount of events: https://www.ft.com/content/345da16e-d967-11e9-8f9b-77216ebe1... This is a pretty technical subject with a lot of moving parts so it's hard to really have a fu

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