Houston, We Have A Liquidity Problem
The Rate Guy
00:00
Strained Treasury Liquidity and the Buyback Program
This chapter discusses the issue of strained treasury liquidity caused by the large amount of treasury issuance and the Federal Reserve reducing its balance sheet. The speakers explore the treasury buyback program, which aims to buy illiquid treasuries from banks to free up their balance sheets. They compare the program's impact to quantitative easing and discuss the potential flood of treasuries that banks may receive.
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