What's Going on in the Emerging Market?

The Fed suspended or exempted treasuries from SLR regulations, supplementary leverage ratio regulations. This took the funding cost of treasuries for banks to zero de facto as a way of basically helping the Fed finance these massive deficits that were taking place with collapse in tax receipts and explosion in stimulus payments. And so this is sort of a classic emerging market playbook, which is you regulate your banks into buying government debt by offering favorable regulatory treatments. I wasn't even aware of the disqualification of the balance sheet treatment if you actually lay off the hedging risk but assuming that's the case, then that further on a tactical basis does more the same.