Jump to content

Archived

This topic is now archived and is closed to further replies.

aussiebear

World Stock Markets Trading Discussion - Glazed gambits

Recommended Posts

big.chart?nosettings=1&symb=AU%3AXAO&uf=

http://bigcharts.mar...com/default.asp

 

 

All Ords is fluttering about the resistance area on the daily chart.  Today the index closed +0.2% led by Energy +1.4% and Gold +0.9%.  REITS -0.4% was down the most.

Over in Asia, China -0.8%, Hong Kong -0.4%, Japan flat, India currently +0.5%.

 

 

On to UK/Europe:

 

 

big.chart?nosettings=1&symb=UK%3AUKX&uf=

 

 

big.chart?nosettings=1&symb=DX%3ADAX&uf=

 

big.chart?nosettings=1&symb=FR%3APX1&uf=

http://bigcharts.mar...com/default.asp

Share this post


Link to post
Share on other sites

Here's one for you Lee. Typically the mark to market value of the Feds balance sheet holdings are irrelevant. I mean I assume the stated value of their portfolio is simply the addition of all their holdings at face value on the built in assumption they will be held till maturity. Despite the fact they were not purchased at par but at whatever the  market was on the day of purchase. Then by selling they are going to either have a gain or a loss, depending of course upon the price they paid for those already issued bonds at their then market value.

 

Or to put it another way, how is a $100.000 10 year treasury note of 2010 purchased by the Fed in 2010 accounted for today on their balance sheet.

 

If the sales ever reach the hundreds of billions of dollars I wonder how this will be accounted for by the Fed and what possible difference it could make? I know this is all off in the weeds and probably of no real systematic importance, or could it be? The longer sales go on and in increasing amounts if rates rise as I think we can assume the chances of losses on the sales increases.

Share this post


Link to post
Share on other sites

Here's one for you Lee. Typically the mark to market value of the Feds balance sheet holdings are irrelevant. I mean I assume the stated value of their portfolio is simply the addition of all their holdings at face value on the built in assumption they will be held till maturity. Despite the fact they were not purchased at par but at whatever the  market was on the day of purchase. Then by selling they are going to either have a gain or a loss, depending of course upon the price they paid for those already issued bonds at their then market value.

 

Or to put it another way, how is a $100.000 10 year treasury note of 2010 purchased by the Fed in 2010 accounted for today on their balance sheet.

 

If the sales ever reach the hundreds of billions of dollars I wonder how this will be accounted for by the Fed and what possible difference it could make? I know this is all off in the weeds and probably of no real systematic importance, or could it be? The longer sales go on and in increasing amounts if rates rise as I think we can assume the chances of losses on the sales increases.

 

Fed does not mark to market. And it is not selling any assets and never will so the Fed won't incur losses. It is merely redeeming expiring paper.

 

I continue to cover this in depth in the Wall Street Examiner Pro Trader liquidity reports, and also at Sure Money. 

 

I will have a regular response to comments post over at suremoneyinvestor.com.  That's a better place for questions like this. I can't answer them here.  Friday's post was the first response to reader comments. This will become a regular feature of the reports.  

Share this post


Link to post
Share on other sites

Fed does not mark to market. And it is not selling any assets and never will so the Fed won't incur losses. It is merely redeeming expiring paper.

 

 

 

 

Oh, so there is actually $50bn/mo maturing now, so they can hit that number come this time next year?  I guess I am not sure the exact meaning of "redeeming".

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.


Stock market portfolio giving you the runs? See Dr. Stool.

Take a subscribatory!
Download 
The Anals of Stock Proctology now!



The Daily Stool - Stock Market Message Board
Stool's Gold- Gold and Precious Metals Forum
Look Out Below Message Board

Support your local Stool Board.


The Al E. Greenspeuman designer line at Stoolmart. Get yours today! Click here now!



Old Stool Depository


The Wall Street Examiner
Subscribe to the Wall Street Examiner
Contact Us




Market Quotes are powered by Investing.com.
×