You need a PLUS account to view this content. Try one month of PLUS for FREE.
Already have an account? log in
Behold: The Free Money Fed Arb
Every week, on Thursday evenings, I pen an update on money market fund flows, RRP balances, T-bill auctions and usage of the Fed's backstop facilities.
Those updates won't win me any awards for creative writing. Blame the subject matter, not the editor. But they are necessary. Money market funds are at the center of several key 2024 debates, and I anyway wanted to create a natural environment (if you will) for short-end/funding market commentary.
In the latest such update, I noted that usage o
It’d be interesting to know which banks are doing this arb; perhaps they are in financial straits.