DISCLAIMER: I was a member of the NY Fed TMPG committee that authored this paper. The opinions expressed here are mine and mine alone. They are not associated with any employer of mine or organization I am associated with. In 2018 the Treasury Market Practices Group (TPMG), which is a group of industry professionals sponsored … Continue reading How US Treasuries Clear
Month: March 2021
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
A proposal for the student loan debt problem
The staggering amount of student loan debt is a pivotal issue for our day. This is not a problem that will go away, this is not a problem that can be solved by blaming the victim (student). This is a problem that requires solutions. Here I present my modest proposal of tuition refunds. The right … Continue reading A proposal for the student loan debt problem