How much?
From today's FT:
A decent sized conduit or SIV is £5B so the bank's extra liquidity is less than one conduit's worth. Is anyone else surprised how relatively small the bank's offer is? Personally I think they are doing an excellent job in not rescuing the imprudent, but I wonder if £4B is significantly different from zero.
Continued high overnight interest rates forced the Bank of England to offer £4.4bn additional cash to commercial banks on Thursday morning, in an effort to normalise the money markets.
A decent sized conduit or SIV is £5B so the bank's extra liquidity is less than one conduit's worth. Is anyone else surprised how relatively small the bank's offer is? Personally I think they are doing an excellent job in not rescuing the imprudent, but I wonder if £4B is significantly different from zero.
Labels: Commercial Paper, Liquidity risk, SIV
posted by David Murphy at 20:44
0 Comments:
Post a Comment
<< Home