Mark S. Young
Posted 15 January 2017 - 02:45 PM
"Nothing to worry about!"
3-Month AA Financial Commercial Paper Rate -
3-Month AA Nonfinancial Commercial Paper Rate = 0.01
Essentially, investors are no more concerned about financial institutions paying their ST debts than they are about Nonfinancial AA Businesses paying their ST debts.
If there were any looming shock to the financial system, I would expect this to get up to or above 0.50 with regularity.
Mark
Mark S Young
Wall Street Sentiment
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Volume Dynamics Specialist
Posted 15 January 2017 - 03:34 PM
I think if you are expecting a blowup in commercial paper to be the first domino to fall, that's not going to happen...
Again I use the analogy of a tennis match, you can think of that as commercial paper...
The derivative meltdown is going to show that the bigger perspective, the tennis was being played on an aircraft carrier deck
And when this ship sinks... it's going to be a tsunami.
Volume Dynamics Specialist
Posted 15 January 2017 - 03:49 PM
Look at these daily charts on the currency crosses....
This is 2008 behavior.
I encourage everyone to dig in deep here on these daily currencies...
The commercial paper market is more than dwarfed by the volume in the currency market, and it IS the sea we're floating that aircraft carrier on...
Here's a great place to look at charts, you will have to adjust the settings... See what you think!
Member
Posted 15 January 2017 - 05:57 PM
"Nothing to worry about!"
3-Month AA Financial Commercial Paper Rate -
3-Month AA Nonfinancial Commercial Paper Rate = 0.01
Essentially, investors are no more concerned about financial institutions paying their ST debts than they are about Nonfinancial AA Businesses paying their ST debts.
If there were any looming shock to the financial system, I would expect this to get up to or above 0.50 with regularity.
Mark
What numbers are you looking at? This looks closer to 0.2 to me for most of the month only dropping on Jan 12. An average of the weekly would seem more representative as one day can reflect repurchase stuff.
https://www.federalr...ov/releases/cp/
Mark S. Young
Posted 16 January 2017 - 05:39 PM
A problem can come from somewhere other than the financial system. This is just one way to not be blind-sided if it does.
M
Mark S Young
Wall Street Sentiment
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http://wallstreetsen...t.com/trial.htm
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