There has been a lot of discussion about the Fed’s change at the discount window. The fact that they lowered the rate a half point is neither here nor there. It’s still at a premium to the market. What is interesting is that they extended the term of discount window loans from overnight to up to 30 days with the opportunity for extension. Today, the four largest banks in the US took advantage of that in what they appeared to say was a symbolic move. However, it would seem a bit unusual to pay a 50 basis point premium to the 30 day rate for AA rated financial company commercial paper in the market as a symbolic gesture. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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