The Institutional Risk Analyst

A "normal" level for US bank deposits would be closer to $15 trillion than $19.9 trillion today.

Xi Jinping in China and Putin in Russia have turned their backs on the global economy to retain power

Just imagine how global markets will react when Putin deploys tactical nuclear weapons in Eastern Ukraine to avoid a military defeat

With MBS prices falling, the FOMC may have to accept the natural runoff rate for the MBS in the SOMA for many years to come

We think the chart below from FRED is worth any amount of words on the impact of QE on equity market valuations.

The SEC has finally decided to do the unthinkable, namely repudiate the admittedly fanciful idea of liquidity on demand at par.

Amidst the yelling and screaming of Elizabeth Warren, we suspect that Jay Powell will survive the crisis

When Treasury market yields trade and stay negative, look for the Federal Reserve Board to come to the rescue of MM funds and banks.

We anticipate a shift in deposits out of banks and into the Fed that could further complicate liquidity in Q3 2021.