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People need to take a chill pill and @Jkylebass needs to understand how money works in HK.
1) There is a US$10bn IPO which launched yesterday and prices/closes in one week.
Big IPOs take money out of the system. Big and popular IPOs take a LOT of money out of the system.
1) There is a US$10bn IPO which launched yesterday and prices/closes in one week.
Big IPOs take money out of the system. Big and popular IPOs take a LOT of money out of the system.
2) This is not new. It happens again and again. EVERY decent professional investor who knows the HK market and monetary system will have observed this. Again and again.
HKMA wrote a decent paper on this 10yrs ago. Method is described within (p2 onward).
hkma.gov.hk/media/eng/publ…
HKMA wrote a decent paper on this 10yrs ago. Method is described within (p2 onward).
hkma.gov.hk/media/eng/publ…
3) There is no "lawlessness." If HIBOR O/N and HIBOR 1W rise quite a bit, HIBOR 1mo will rise also, b/c 1mo contains the 1D and 1W. This is basic depo/funding curve arithmetic.
4) 1M is +29bp today b/c 2W is +61bp. Means the other 16-17 days of 1M are only up TINY.
4) 1M is +29bp today b/c 2W is +61bp. Means the other 16-17 days of 1M are only up TINY.
