The Fed modestly decreased its Treasury and mortgage-backed holdings during the week-ended Wednesday March 15th. Thus, the Fed simultaneously ran QT with QE running in the background in the form of the Bank Term Funding Program (BTFP). You may read about the BTFP's first week in operation by clicking HERE. Treasuries: The Fed’s Treasury security holdings … Continue reading The Fed’s Balance Sheet Reduction (QT) Update Premium
Weekly Update: Bank Term Funding Program
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
Expect Banks To Borrow Heavily from BTFP
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
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