It’s D-Day For The Repo Market: On Monday $100 Billion In Liquidity Will Be Drained – What Happens Next?

Last week’s apocalyptic report by repo market guru Zoltan Pozsar, which for those who missed it predicted that an imminent market crash and loss of control of overnight rates by the Fed would spark nothing short of QE4, sparked an unprecedented panic at the Federal Reserve, which just two days later unveiled a historic liquidity injection, in which the…

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The Destruction of Civilization

Implications of extreme monetary interventions When I was asked to write an article about the impact of negative interest rates and negative-yielding bonds, I thought this is a chance to look at the topic from a broader perspective. There have been lots of articles speculating about the possible implications and focusing on their impact in…

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The Danger Of Deeper OPEC+ Cuts

OPEC+ agreed to cut production by 500,000 bpd, sending oil prices higher on Friday. During mid-day trading, WTI was just shy of $60 per barrel, and Brent moved closer to $65. In total, the 1.2 million-barrel-per-day (mb/d) cuts from OPEC will rise to 1.7 mb/d. Those details had been reported on Thursday. But when OPEC+ made it…

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