Risks around to the economic outlook linked to a looming debt-ceiling crisis have been in the market for some time. This pricing in of risk has become particularly apparent now that both Treasury Secretary Janet Yellen and the nonpartisan Congressional Budget Office have put Congress on ... READ MORE >
money markets
Risk metrics: Monitoring distress in the U.S. financial sector
As this latest episode of banking distress makes clear, the health of the U.S. economy depends on the health of the financial sector. Even if a business seems far removed from Wall Street, trends in the financial markets have important implications on that company’s fiscal health and operations. U.S. ... READ MORE >
Money market primer: How to measure stress in the financial system
The robust steps taken by the Federal Reserve over the past two weeks to shore up the front end of the money markets are essential to the free flow of capital and global economic stability. We now anticipate that the Federal Reserve will cut the policy rate by 100 basis points to an effective rate of ... READ MORE >
Canary in a coal mine: What money market spreads tell us about risk
Money market spreads offer a real-time insight into the amount of risk being priced into interest-rate transactions and can provide real-time metrics of larger financial and economic challenges. The upset in financial markets over the past two days has caused a move in sensitive risk spreads ... READ MORE >