Loading ...Liquidity to REPO to Global market Crystal ball
Credit market is the center of the Global financial market universe.
Watching/monitoring these credit indicators can lead to market positioning Long or Short.
Libor3 rates to 3 months Treasury bill rate : Libor3/ $IRX
Yield curves across all maturities specially L TNX/ IRX, TYX/FVX (5yr Treasury),…
Credit spread High yielding Junk bonds to Treasury bond : MUT/TLT, HYG/IEF or JNK/TLT.
Gold to silver ratio or Silver to gold ratio.
From time to time all of the above charts have been shared here for benefit of valuable members.
Below is a youtube post by George Gammon explaining exactly how REPO works and hos FED is watching the same indicators for healthy liquidity.
In the video he explains why Gold and silver goes down during initial credit contraction crash phase. First time learned new info. Great.
To help understand video latest credit charts are included below.
Bilcoo, that’s a good video by George Gammon. I was just about to post it when I noticed you beat me to the punch.
Gold stocks collapsing, silver stocks collapsing. Someone needs cash. Now.
Don’t forget reverse symmetry. These stocks can and likely will go back up the same way they went down. Greased lightning.
The question is – “When?”
Yes I found it on Sven tweeter account in one of the reply. Agree gold/silver in time expected to go higher. 2008 to 2011 all over.
Exactly. Now I understand. I FED goves repo markets when they need… no need to sell assest to but treasuries. Relievs pressure om gold… but doesnt necessarily create buying pressure..
There are Credit swap traded everyday. I do not have access to them. It will be interesting to see what arre the spread chart reveals in corporate bonds nad treasury CDO’s??
One has to have sub with Bloomberg charting service.
May be Trading view has those charts available.
Gammon is good, even if he’s a bit info mercial ish.
His longer videos are better, with his whiteboards.
Armstrong has been focusing on repo, as have I, as the REAL STORY.
And MA says it will get worse, and Fed has no answers. Just like Jeff Snider, from Armstrong I still don’t get the clearest picture. Hence, Zoltan on Repo.
Basically, I gather with falling and low rates, foreign buyers borrowed dollars ever since Lehman, so now with revenues collapsing, they can’t roll over their borrows. Bucky up, so $ cost even more for folks selling local FX. Result, folks are having to deleverage. But it was Fed over 10 years that pushed everyone way out on the skinny branches of the leverage tree, to try to earn 8% they couldn’t the old fashioned way. They baked this. Now they will have to eat their own (crappy) cooking. And the rest of us will get crumbs if we’re lucky.
Agree. one can stretch the band for so long. Big problem is going to be all retirement annuity go belly up.