The Institutional Risk Analyst

Within a couple of months, the supplies of crucial petrochemical inputs currently on the water will be delivered and there will be nothing in the delivery pipeline after that point in time. Refined products are a far greater concern than oil. Kuwait, for example, produces a lot of aviation fuel for the EU. The Saudis are now shipping phosphates by truck to Yanbu, but this is not even a modest replacement for the disrupted supply chain in the Gulf.

The markets got their rate cut over the past six months and now may have to give some of that back.

Why should a private Fannie Mae be a 20% risk weight under Basel III, but PFSI or Mr. Cooper (COOP) are 100%?

In 2019, the FOMC essentially nationalized the US money markets, eliminating private price discovery for a representation of a market.

This morning, banks are buying funding from the BTFP below 4.85% and selling Fed funds at 5.5%.