Daniela Gabor on Financial Globalization, Capital Controls, and the Critical Macrofinance Framework
Macro Musings with David Beckworth
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Do We Have a Rip of Financing Framework?
There is a big move to take these these swaps and put em on thee central clearing facilities, which makes it more transparent. It's easier for regulators to get in there. But it concentrates all this risk on one note in the financial systemor several notes,. depending how many central clearing facilities you have. So there's the trade that's right there, or trados. There is a real interesting paper by the tailors pers where he discusses how the move towards cisipes in the rivatives market creates very interesting and sometimes puzzling dynamics of collateral valuation. The interaction between collateral valuation and derivatives pricing is, i think, understudied, and we don't understand it very well.
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