Federal Reserve Financial Stability Report Warns on Worsening Liquidity Risks

The Federal Reserve released its twice–yearly report on financial hazards in its 2022 financial stability report warning the recent deterioration in liquidity has not been as extreme as in some past episodes but the risk of a sudden significant deterioration appears higher than normal. They also noted commodities have been subject to notable dysfunction. Federal Reserve 2022 financial stability report Highlights‘ “According to some measures, market liquidity has declined since late 2021 in the markets for recently-issued U.S. cash Treasury … Continue reading “Federal Reserve Financial Stability Report Warns on Worsening Liquidity Risks”

Investors Record Exposure to Bond Duration Could Mean Trillions in Losses Should Interest Rates Rise Moderately

Inflation expectations around the globe continue to rise, hitting multi decade highs in some cases. With investors’ exposure to duration near record highs what may seem an unassuming rise in yields could inflicts trillions of dollars in losses.

Federal Reserve Financial Stability Report Warns on Worsening Liquidity Risks

The Federal Reserve released it’s twice–yearly report on financial hazards in it’s 2020 financial stability report warning that the coronavirus (COVID-19) pandemic has caused tremendous human and economic hard-ship across the United States and around the world. They warned on assets if the pandemic worsens. Federal Reserve 2020 financial stability report Highlights Warns financial sector vulnerabilities likely to be significant in near-term Pandemic strains on household and business balance sheets likely created fragility’s that last for some time Warns banking … Continue reading “Federal Reserve Financial Stability Report Warns on Worsening Liquidity Risks”