Operating at the Intersection of Technology and the Capital Markets
Tag: bail outs
UBS agreed to acquire CSFB. Sure, $17 billion in high yield debt was wiped out (perhaps we will see high yield downgrades as a result elsewhere across the landscape of financial issuers?) Despite the writedown of $17 billion in high yield debt, I hesitate to characterize this deal as a "bail in" because the Swiss … Continue reading The Latest Bank Bail Out: UBS To Acquire CSFB.
The Bank Term Funding Program (BTFP) had approximately $11.9 Billion in outstanding loans as of Wednesday this week, just north of the Paycheck Protection Program (PPP, a COVID relic), which had $10.6 billion in loans outstanding. The "other credit extensions" line item of $142.8 billion includes the FDIC loans made to the regional banks this … Continue reading Weekly Update: Bank Term Funding Program
Nobody overdoes it like the Fed, except maybe the fiscal side of Government. Not only does the Bank Term Funding Program (BTFP) make bank collateral owned as of March 12th whole, the BTFP has a more attractive rate (at today's rate), compared to the Fed's discount window. When a bank borrows from the Fed's discount … Continue reading Expect Banks To Borrow Heavily from BTFP
If the U.S. was to experience a widespread bank run, that would be the time for the Federal Reserve to expand the money supply, thereby providing liquidity to commercial banks such that they may meet depositor withdrawals. Thus far SVIB and SBNY have been closed by the FDIC. Apparently that was too much for Fed … Continue reading Bail Out
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