Epstein Secrets

ries likely to spark runs? In this vision, demand deposits, fixed-value money-market funds, or overnight debt must be backed entirely by short-term Treasuries. Investors who want higher returns must bear price risk. Intermediaries must raise the vast bulk of their funds for risky investments from run-proof

fixed values and first-come first-served redemption. "Prime" funds invest in illiquid or low-grade paper to generate higher yields than available in Treasuries. The Reserve Fund, heavily invested in Lehman Brothers debt, "broke the buck" in 2008. Subsequently, the Treasury guaranteed money market fund debt

t will befall the republic should 39 EFTA00611692 they not get paid back. You remember how Goldman Sachs got its collateral from AIG and how the General Motors bankruptcy trampled creditor rights. What do you do? Run. So the prospect of resolution, rather than calming the waters, seems doomed to start its o

+0.46%) which strengthened in spite of the weaker than expected US data. This weighed on EURUSD (-0.3%) which had its sharpest fall in three weeks. Treasuries traded in a tight range between 2.50% to 2.53%. An uneventful Syr UST aucti=n helped 10yr yields close at 2.50%, not far from where they are trading

10yr and 7yr UST supply. In the US, the other data releases of note are the monthly budget statement and CPI (consensus 0.2% MoM vs 0.1% in August). General Motors reports earnings today before the opening bell — its always interesting to hear management's view= on global demand, particularly in light of Ford'

r than Treasury yields with corresponding maturities as they include incremental credit risk associated with the banks that provide swaps compared to Treasuries, which are viewed as risk-free. 2)10-year Treasury swap spread turned negative on 3/24/10, while 30-year Treasury swap spread turned negative in 10/0

of GDP) 1998 — Russia ($73B — 27% of GDP) State / Local Financial Woes 1975 — New York City ($14B* Debt Outstanding) Corporate Bankruptcy 2009 — General Motors ($95B Debt Outstanding) Note: 1) Attributed to Mark Twain. *NYC government and subsidiaries had $14B debt outstanding in 1975. Adjusting for inflat