This week, the Federal Reserve (Fed) adjusted its Bond Term Funding Program (BTFP), established in March 2023 post the regional banking crisis, to prevent banks from exploiting an arbitrage opportunity.
As the year 2023 comes to a close, it’s fascinating to reflect on the dynamism of international trade, the underpinnings of our financial systems, and the looming concerns around currency strength and sovereign debt.
Hard times are coming, but it's beautiful on the other side.
2023 has been the year of the Great Bitcoin Decoupling and it may be driven by the fact that more and more individuals are beginning to understand how much counterparty risk they are exposed to in the banking system.
The 10yr US Treasury yield has climbed from 0.66% in April 2020 to 4.7% this week.
Why on God's green Earth would anyone lend this entity money?
People aren't confident in the US economy at the moment and are actively offloading US debt as a result.
