Brian Romanchuk's commentary and books on bond market economics.
Well I expect there will be plenty of things you will want to rant about during the next few weeks. And please do so. I gotta say- what you consider a 'rant' is very different from my own rants. In fact, I have never thought anything you posted would be considered a 'rant'. Please rant away as often as possible.
Hi Brian, I note that the repo holdings of the Bank of Canada (BoC) have increased from $33.48 billion on March 25, 2020, to $166.929 billion on April 22, 2020. I assume the repos are being used to lend the money to the banks and dealers that they need to buy the Government of Canada securities issued due to covid spending. Do you have any comments on that? In addition it would be very appreciated if you had other comments regarding the BoC balance sheet, including the role of Bankers' Acceptances. Thanks. Info at https://www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/
I haven’t had time to look at the details. I think the idea is that they are offering repo financing to ensure that financial markets can absorb issuance. Once the market functioning is back to normal, they let the repos roll off.This is unusual. The BoC normally did very little in the way of repos, while repos were a big part of the Fed pre-2008 balance sheet.
Note: Posts may be moderated, and there may be a considerable delay before they appear.Although I welcome people who disagree with me, please be civil.Please note that my spam comment filter appears to dislike long "anonymous" posts.Note: if you want to post comments from Apple devices (iPhone, iPad), you apparently need to turn off "prevent cross-site tracking" in Safari privacy settings. (The reason presumably is that another URL handles comments, and so the user session needs to be preserved when redirected to that site. I don't like this, but this is not enough to make me switch my hosting service.)