Posts Tagged ‘Term Deposit Facility’

Notes From Underground: LTRO provides the NITRO to hammer the global equity markets

June 29, 2010

NEWS OUT OF EUROPE: The Spanish Banks were all in a rage as the ECB moved to shorten the duration of the TERM DEPOSIT FACILITY, as the terms were shifting to three months from one year. The Long-term Repurchase Operation (LTRO) that was agreed to a year ago provided the needed funding to get European Banks through a difficult liquidity period at a very friendly below-market rate. Now that the ECB has put an end to that program the still-stressed banks are concerned that the ECB removal of the LTRO will cause short-term problems since liquidity is still an issue.


Notes From Underground: Today’s financial fashion statement was RISQUE

June 15, 2010

The markets settled down and launched an assault on the long-term moving averages in an attempt to arouse the prurient interests of capital in its quest for fertile returns on capital that has been teased far too often with risk-based returns. The S&Ps and Dow joined the Nasdaq and closed above the 200-day moving average. Only time and consolidation will tell if it is to be sustained so as to entice money back in after the rape of May 6. As risk was in vogue, all the other risk elements joined the party and a good time was had by all.