Friday, November 18, 2011

Fed Swap on the Rise

The Fed is continuing to extend dollars to the ECB via the liquidity swap facility (taking euros in as collateral). As dollar money markets refuse to buy/roll European (non-UK) commercial paper, banks in Europe are increasingly turning to the ECB for dollar funding.



The levels are a fraction of what was extended in 08-09 but are still an indication of a continuing stress in the dollar funding markets.
SoberLook.com
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