FT News Briefing JPMorgan swaps cash for Treasuries
45 snips
Dec 17, 2025 
Josh Franklin, U.S. banking editor at the Financial Times, delves into JPMorgan's strategic withdrawal of nearly $350bn from Fed reserves to buy Treasuries, emphasizing the liquidity risks involved. Rachel Reese, a Markets reporter, highlights the bullish sentiment among investors as fund managers' cash holdings plummet to record lows amid an AI-driven stock market surge. They also discuss the implications of rising unemployment and the intriguing rally in Venezuela's defaulted bonds tied to hopes for regime change.
AI Snips
Chapters
Transcript
Episode notes
Venezuelan Debt Rally Tied To Regime Speculation
- Venezuelan bonds rallied to 33 cents on the dollar after a 40% rise since October.
- Investors bet on possible regime change under Donald Trump despite analysts warning of chaotic outcomes.
JPMorgan's Massive Shift Into Treasuries
- JPMorgan moved almost $350bn from its Fed account into US Treasuries to lock in fixed rates.
- The shift explains most of the fall in cash parked at the Fed and shows the bank's outsized market influence.
Why Locking Into Treasuries Makes Sense
- Banks earn interest on reserves at the Fed but that rate can fall, so JP Morgan prefers fixed-rate Treasuries.
- Locking into Treasuries protects profit margins if the Fed continues cutting rates.