Swaps use pretty stable globally, with only the Bank of Japan's use perhaps creeping up ...
Japan has consistently accounted for around 50% of total use of the facility in May
apps.newyorkfed.org/markets/autora…
Japan has consistently accounted for around 50% of total use of the facility in May
apps.newyorkfed.org/markets/autora…
No secret as to why --
a) Japan's banks and lifers have a big dollar funding/ hedging need.
b) Unlike the Taiwanese lifers who always hedged primarily with their own central bank, the Japanese system largely used to hedge in the market
ft.com/content/df9e34…
a) Japan's banks and lifers have a big dollar funding/ hedging need.
b) Unlike the Taiwanese lifers who always hedged primarily with their own central bank, the Japanese system largely used to hedge in the market
ft.com/content/df9e34…
Holy grail for flow tracking here will be figuring out who withdrew swaps funding from the Japanese financial system over the last few months ...
Don't think Japan's aggregate dollar funding need has increased by $225b (use of the Fed line) so someone pulled back.
Don't think Japan's aggregate dollar funding need has increased by $225b (use of the Fed line) so someone pulled back.
