This document is intended for institutional investors and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail investors.
The money markets are flashing warnings about excess liquidity in some corners of fixed income. The Fed is pouring cash into the market through QE, the Treasury has estimated it may add $1.1 trillion to the market through June, Fannie Mae and Freddie Mac are moving money around, and the Fed has a big decision to make about banks’ ability to soak up all the liquidity. With a tsunami of cash looking for a home, it promises to be another exciting spring. This APS Portfolio Strategy audio feature follows all the money flows and their potential impact on rates, spreads, MBS and beyond.
This material is intended only for institutional investors and does not carry all of the independence and disclosure standards of retail debt research reports. In the preparation of this material, the author may have consulted or otherwise discussed the matters referenced herein with one or more of SCM’s trading desks, any of which may have accumulated or otherwise taken a position, long or short, in any of the financial instruments discussed in or related to this material. Further, SCM may act as a market maker or principal dealer and may have proprietary interests that differ or conflict with the recipient hereof, in connection with any financial instrument discussed in or related to this material.
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