The Fed Agrees?

San Francisco Federal Reserve CEO, Mary Daily, said (according to Reuters, I can not find the original speech/text the article is referencing): https://www.reuters.com/article/usa-fed-daly-idUSL1N2M828L "She raised a number of potential fixes, including creating a standing repurchase facility to backstop markets during times of stress, expanding trading platform access to more entities, and using central clearing for … Continue reading The Fed Agrees?

Papers on the US Treasury Market Structure

In the last year there have been several academic papers written about the market structure of the US Treasury market. As the most important fixed income market it is great to see so much discussion around the topic of its market structure and improvements that can be made. Most of these papers were written in … Continue reading Papers on the US Treasury Market Structure

Review: Price Discovery in the U.S. Treasury Cash Market

Price-Discovery-in-UST-MarketsDownload This is the third post in my series of reviews of academic papers written in the last year about the market structure of the US Treasury market. As the most important fixed income market it is great to see so much discussion around the topic of market structure. This post is a review and … Continue reading Review: Price Discovery in the U.S. Treasury Cash Market

The Most Important Scarce Resource is Legitimacy

https://vitalik.ca/general/2021/03/23/legitimacy.html This is a fascinating article about legitimacy in the context of cryptocurrency and blockchains. What I thought was interesting was the list of the theories of legitimacy and how it can be obtained. The first two items, listed below, sound exactly like how our current system of government operates. Legitimacy by brute force: someone … Continue reading The Most Important Scarce Resource is Legitimacy

Review: Enhancing Liquidity of the U.S. Treasury Market Under Stress

Enhancing-Liquidity-in-US-Treasury-MarketsDownload This is the second post in my series of reviews of academic papers written in the last year about the market structure of the US Treasury market. As the most important fixed income market it is great to see so much discussion around the topic of market structure. This post is a review and … Continue reading Review: Enhancing Liquidity of the U.S. Treasury Market Under Stress

Review: Still the World’s Safe Haven?

Redesigning-the-US-Treasury-Market-post-COVIDDownload This is the first post in my series of reviews of academic papers written in the last year about the market structure of the US Treasury market. As the most important fixed income market it is great to see so much discussion around the topic of market structure. This post is a review and … Continue reading Review: Still the World’s Safe Haven?

Explainer: Classic one-way levered Treasury bond trades

The US Treasury market is enormous and rich with trading opportunities for leveraged players in the market. Below we describe two of the most classic and common of the "one-way" levered trades. Why "one-way"? Because these are trades that tend to only be put on in one direction because the thesis is that there is … Continue reading Explainer: Classic one-way levered Treasury bond trades