Menu Close

Commercial Paper Collapse Bullish- WSE Pro

The Fed added a net of $5 billion from the liquidity pool on Friday with a 5 day repo of $5 billion against no expirations. That makes a 5 day net add of $19.5 billion, helping to absorb over 40% of the $47 billion in net new money which the Treasury settled Thursday and Friday. Thanks again to a huge flight to safety bid, plus some help from FCBs, there has been no problem at the Treasury auctions, and there was even enough left over to spur stocks to rally in a light volume environment. A big indirect bid in the auctions this week has gone a long way toward helping to reliquify the markets. I have only half facetiously noted on our message boards that the collapse of the asset backed commercial paper is bullish, because those holders lucky enough to get their cash back at maturity now see big cap stocks as a safe haven.

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.

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading