Is the International Role of the Dollar Changing?

Macro Risk Premium and Intermediary Balance Sheet Quantities

Performance Maximization of Actively Managed Funds

Repo Market Effects of the Term Securities Lending Facility

Source: Fed U.S. Credit Conditions

‘There’s a growing recognition the dispersion of credit risk by banks to a broader and more diverse group of investors … has helped make the banking system more resilient”. So said the International Monetary Fund’s Global Stability Report in 2006.

“Improved resilience may be seen in fewer bank failures,” the IMF predicted. “Consequently, the commercial banks may be less vulnerable today to credit or economic shocks”.

“Obviously, if the unwinding of the various imbalances were to signal lower-than-expected growth, markets would react more sharply; but there is little evidence from the above analysis to suggest that the expected or likely market corrections in the period ahead would lead to crises of systemic proportions.”

Zhu Min, a man worth listening to
Global Financial System Resilience in the Face of Cyclical Challenges
The Influence of Credit Derivative and Structured Credit Markets on Financial Stability

A. The Manager of the System Open Market Account has said that the System’s holdings of securities will tend to decline gradually after the completion of the asset purchase programs, reflecting maturing issues and prepayments on holdings of MBS. The Manager noted that the Committee would likely wish to discuss in detail its policy for reinvesting the proceeds of maturing issues and prepayments; he proposed, as an interim approach, continuing the practice of NOT reinvesting the proceeds of maturing agency securities or MBS prepayments. Meeting participants supported that interim approach pending further discussion at future meetings.

note: answer is excerpt from f.o.m.c. minutes

Related:
US MBS: End To NY Fed’s MBS Program Being Closely Followed

As human life expectancy continues to rise, financial decisions of aging investors may have an increasing impact on the global economy. In this study, we examined age differences in financial decisions across the adult life span by combining functional neuroimaging with a dynamic financial investment task. During the task, older adults made more suboptimal choices than younger adults when choosing risky assets. This age-related effect was mediated by a neural measure of temporal variability in nucleus accumbens activity. These findings reveal a novel neural mechanism by which aging may disrupt rational financial choice.