Yale School of Management

Posts by Market Liquidity

RBI reinforce liquidity measures while keeping the interest rate constant

October 21, 2020
At its most recent monetary policy meeting, the Reserve Bank of India reinforced a number of measures to fight against shocks caused by COVID-19. The measures to ease liquidity issues include (i) establishment of On Tap Targeted Long-Term Repo Operations (TLTRO), (ii) extension of Statutory Liquidity Ratio (SLR) Holdings in the Held To Maturity (HTM) category, and (iii) adjustments in Open Market Operations (OMOs) to purchase State Development Loans and increase the overall purchase amount. Continue reading “RBI reinforce liquidity measures while keeping the interest rate constant”

"Prioritizing Wall Street": Report by Select Subcommittee on Fed’s Corporate Bond Purchases

September 24, 2020
YPFS
On September 23, the United States House of Representatives Select Subcommittee on the Coronavirus Crisis released a report investigating corporate bond purchases by the Federal Reserve (Fed) in response to the economic downturn caused by COVID-19. Continue reading “"Prioritizing Wall Street": Report by Select Subcommittee on Fed’s Corporate Bond Purchases”

Despite Stated Exclusion, the Fed Is Buying Bank Debt

September 21, 2020
YPFS
The Federal Reserve has said it won’t directly buy bonds issued by banks as part of its COVID financial rescue facilities. But a close review of its holdings reveals that by buying exchange traded funds, it has indirectly bought $2 billion of bank bonds—over 15% of its total corporate bond holdings. Continue reading “Despite Stated Exclusion, the Fed Is Buying Bank Debt”

Federal Reserve extends temporary US dollar liquidity swap lines and FIMA repo facility to March 31, 2021

August 4, 2020
On July 29, the Federal Reserve announced the extensions of its temporary U.S. dollar liquidity swap lines and the temporary repurchase agreement facility for foreign and international monetary authorities (FIMA repo facility). Now these facilities are set to expire on March 31, 2021. Continue reading “Federal Reserve extends temporary US dollar liquidity swap lines and FIMA repo facility to March 31, 2021”