Fannie Mae and Freddie Mac are expected to retain “limited and tailored government support” after they are freed from U.S. control, Treasury Secretary Steven Mnuchin said in a letter to lawmakers seeking information on the administration’s plans for the mortgage giants. (Bloomberg Markets | Feb 20)
A push to delay reporting of transactions in the $640 trillion global swaps market is gaining steam in Washington, signaling a possible win for Wall Street banks as regulators move to overhaul how they keep tabs on trading. A CFTC plan that would allow block trades to stay secret for 48 hours is part of a sweeping plan to improve derivatives' data. (Bloomberg Politics | Feb 18)
The Federal Reserve has doled out tens of billions to calm the short-term lending markets after they went haywire in September. But
initiatives
by the U.S. Treasury Department
–
to ensure it always has enough cash to pay its bills as the deficit soars to a trillion dollars
–
could make it harder for the Fed to prevent a repeat. (Bloomberg Politics | Feb 18)
The slide of so many bond yields below zero may cost pension funds and other institutional investors a trillion dollars this year. Around the world, traders must pay to lend on $13 trillion of debt as the coronavirus and heightened economic uncertainty help to underpin demand for the safest assets. Retirement funds are particularly exposed because they have few other secure places to store their assets, but need to generate returns to support pension holders into old age. (Bloomberg Markets | Feb 14)
Federal regulators launched a new effort to overhaul the plumbing of the U.S. equity markets with a measure to improve stock-price data available to the public and reduce the informational advantage enjoyed by some professional traders. (The Wall Street Journal | Feb 14)