U.S. Bank Lending Crisis Is Not A “Temporary Hiccup” – BIS

Source: Bloomberg

◆ U.S. banks couldn’t quickly fund lending market when rates spiked & hedge funds ‘compounded the strains’ in vital part of finance – BIS report

◆ The Bank for International Settlements — the central bank of central banks says that the ongoing mayhem in the U.S. repo market which began in September and has seen over $3 trillion pumped into the U.S. banking system suggests that there is a very serious structural problem at the heart of the U.S. financial system

◆ Hedge funds exacerbated the turmoil in the repo market with their thirst for borrowing cash to juice up returns on their trades.

◆ The market was upended in part because four U.S. banks now hold more of their liquid assets in Treasuries relative to what they park at the Federal Reserve which meant “their ability to supply funding at short notice in repo markets was diminished”

◆ The market relies heavily on just four big U.S. banks for funding and the incident is not just a temporary hiccup according to the latest analysis from the Bank for International Settlements.

◆ Investors need to be proactive and become more defensive in their asset allocation to hedge the increasing financial and systemic risks.

Full article via Bloomberg


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GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

09-Dec-19 1463.60 1461.70, 1112.04 1111.48 & 1323.09 1320.06
06-Dec-19 1474.85 1459.65, 1122.80 1112.40 & 1328.54 1320.25
05-Dec-19 1474.60 1475.95, 1122.76 1122.31 & 1329.65 1329.54
04-Dec-19 1475.85 1475.10, 1131.53 1125.94 & 1332.54 1327.89
03-Dec-19 1470.40 1477.30, 1132.50 1136.78 & 1328.51 1333.12
02-Dec-19 1457.50 1461.15, 1130.00 1130.05 & 1323.26 1321.17
29-Nov-19 1456.35 1460.15, 1129.55 1131.32 & 1323.24 1327.42
28-Nov-19 1457.55 1454.65, 1127.27 1127.35 & 1323.60 1321.84
27-Nov-19 1459.80 1454.35, 1134.12 1129.74 & 1326.23 1322.30
26-Nov-19 1457.65 1454.65, 1133.76 1131.86 & 1322.96 1321.11



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Mark O'Byrne

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