Podcasts about secured overnight financing rate

Our CIO and Chief U.S. Equity Strategist Mike Wilson looks at buying opportunities approaching year-end, as U.S. trade policy and the Fed find middle ground. Read more insights from Morgan Stanley.----- Transcript ----- Mike Wilson: Welcome to Thoughts on the Market. I'm Mike Wilson, Morgan Stanley's CIO and Chief U.S. Equity Strategist. Today on the podcast I'll be discussing recent macro events and third quarter earnings results.It's Monday, November 3rd at 11:30am in New York. So, let's get after it.Last week marked the passage of two key macro events: the meeting on trade between Presidents Trump and Xi and the October Fed meeting. On the trade front, the U.S. agreed to cut tariffs on China by 10 percent and delay newly proposed tech export controls for a year. In exchange, China agreed to pause its proposed export controls on rare earths, and resume soybean purchases while cracking down on fentanyl. This is a major positive relative to how developments could have gone following the sharp escalation a few weeks ago, and markets have responded accordingly.With respect to the Fed meeting, Powell suggested policy is not on a preset course which took the bond market probability of a December rate cut down from 92 percent before the meeting to 68 percent currently. It also led to some modest consolidation in equity prices while breadth remained very weak. In my view, the market is saying that if growth holds up but the Fed only cuts rates modestly, leadership is likely to remain narrow and up the quality curve.Over the next 6 to 12 months, we think moderate weakness in lagging labor data, and a stronger than expected earnings backdrop ultimately sets the stage for a broadening in market leadership. However, we are also respectful of the signals the markets are sending in the near term. This means it's still too early to press the small cap/low quality/deep cyclical rotation trade until the Fed shows a clear willingness to get ahead of the curve. Perhaps just as important for markets was the Fed's decision to end Quantitative Tightening, or QT, in December.Recently, Jay Powell has acknowledged the potential for rising stress in the funding markets and indicated the Fed could end QT sooner rather than later. Over the past month, expectations for the timing of this QT termination ranged from immediately to as late as February. Powell seemed to split the difference at last week's meeting and this could be viewed as disappointing to some market participants.In order to monitor this development, I will be watching how short-term funding markets behave. Specifically, overnight repo usage has been on the rise and if that continues along with the widening spreads between the Secured Overnight Financing Rate and fed funds, I believe equity markets are likely to trade poorly, especially in some of the more speculative areas. In short, we think higher quality areas of the market are likely to continue to outperform until this dynamic is settled.Meanwhile, earnings season is in full swing and the real standout has been the upside in revenue surprises, which is currently more than double the historical run-rate. We think this could provide further support that our rolling recovery thesis is under way which leads to much better earnings growth than most are expecting.Bottom line, we are gaining more confidence in our core view that a new bull market began in April with the end of the rolling recession and the beginning of a new cycle. This means higher and broader earnings growth in 2026 and a potentially different leadership in the equity market. The full broadening out to lower quality, smaller capitalization stocks is being held back by a Fed that continues to fight inflation; perhaps not realizing how much the private economy and average consumer needs lower rates for this rolling recovery to fully blossom. Last week's Fed meeting could be disappointing in that regard in the short run for equity markets. As a result, stay up the quality curve until we get more clarity on the timing of a more dovish path by the Fed and look for stress in funding markets as a possible buying opportunity into year end.Thanks for tuning in; I hope you found it informative and useful. Let us know what you think by leaving us a review. And if you find Thoughts on the Market worthwhile, tell a friend or colleague to try it out!

On this episode of the ABA Banking Journal Podcast, ABA economist Jeff Huther discusses recent dynamics with the Secured Overnight Financing Rate, the “world's most important number.” Huther delves into topics in his his new ABA DataBank essay, exploring how quantitative tightening has pushed SOFR toward the upper end of the Federal Open Market Committee's rate target range, the effects of monetary policy mechanisms like the Overnight Reverse Repo Facility, and how banks and other SOFR users can manage volatility that may emerge in the rate.

De FED valt door de mand met de nieuwste renteverhoging van een kwart procent. Niet alleen geeft dit aan dat de FED het liever niet meer over de rente heeft terwijl de inflatie nog steeds erg hoog is, voorzitter Powell heeft ook zijn masker afgeworpen en de FED ontmaskerd als onderdeel van de overheid en niet als neutrale partij die boven de overheid hangt. Wat de overgang van de London Interbank Offered Rate of LIBOR naar de Secured Overnight Financing Rate  of SOFR kan betekenen voor alle hypotheekhouders verkennen we in deze aflevering van GoudKoorts!

Interest rates are a key measure of the price of money, but as the plural suggests, there is one more than just one interest rate. Today Jack dives deep into the interest rate structure with whiz kid Kemen Linsuain, known commonly as DC Analyst, who knows a thing or two about the many different kinds of risk-free rates that punctuate the financial system. Kemen tells of the Federal Funds rate, which is the nominal overnight rate that the Federal Reserve controls, to other rates within the Fed's remit such as the interest on reserve balances (IORB) and the reverse repo rate (RRP). Kemen and Jack then discuss overnight interest rates not within the Fed's control such as the Secured Overnight Financing Rate (SOFR), the London Interbank Offered Rate (LIBOR), and then other rates and derivatives such as Treasury bill futures and swap rates. Note: the vast majority of rates discussed in this conversation are short-term rates with minimal amounts of credit risk, and should not be confused with corporate bond yield, mortgage rates, or commercial banking rates. Lastly, Kemen shares his thoughts on crypto, and tells Jack about his latest venture into crypto as a content creator at Gauntlet.  -- About Gauntlet: https://gauntlet.network/ DC Analyst blog: https://dcchartbook.substack.com/ Latest chartback from DC Analyst: https://dcchartbook.substack.com/p/chartbook-17 Follow Kemen on Twitter https://twitter.com/AnalystDC Follow Gauntlet on Twitter https://twitter.com/gauntletnetwork Follow Jack Farley on Twitter https://rb.gy/uesguv Follow Forward Guidance on Twitter https://rb.gy/cy0dki Follow Blockworks on Twitter https://rb.gy/igyzsj -- Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://rb.gy/5weeyw Market commentary, charts, degen trade ideas, governance updates, token performance, can't-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos -- Timestamps: (00:00) Introduction (01:08) Interest Rate Mayhem in 2022 (14:19) Repo Markets (21:08) Curve Ad (22:14) Secured Overnight Financing Rate (SOFR) (37:03) Interest Rate Derivatives Market (41:39) LIBOR to SOFR Transition (50:14) Spread Between EFFR & SOFR (Effective Fed Funds Rate & Secured Overnight Financing Rate) (55:26) Overnight Index Swaps (OIS) and Forward Rate Agreements (FRA) (56:50) Negative Swap Spreads (59:48) Term Premium (01:02:12) Thoughts On The Fed (01:06:53) Crypto & DeFi (01:13:34) Where Did The (Crypto) Yield Come From? -- Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Join us to hear about the latest on LIBOR transition as the Secured Overnight Financing Rate overtakes USD LIBOR traded volume for the first time. We discuss all the key areas Firms should be aware of as we look ahead to USD LIBOR cessation on 30 June, 2023. This podcast is recorded on March 11, 2021.  The views in this podcast do not necessarily reflect the views of JPMorgan Chase and Co or its affiliates. Collectively JP Morgan. This communication is provided for information purposes only. JP Morgan normally makes a market and trades as principal insecurities, other financial products and other asset classes that may be discussed in this for additional disclaimers and regulatory disclosures. For additional disclaimers and regulatory disclosures, please consult: https://www.jpmorgan.com/disclosures/salesandtradingdisclaimer.  For further information about benchmark reform and the transition away from LIBOR, please visit https://www.jpmorgan.com/global/markets/libor-sofr.

The transition from the London Interbank Offered Rate, otherwise known as LIBOR, has been in the works for quite a while, but we're reaching crunch time for lenders to move on to the Secured Overnight Financing Rate (or some other such alternative rate). In this episode, Daniel Ford of Thompson Coburn Hahn & Hessen clears up some of the misconceptions about the transition, outlines which lenders are well prepared for it and lays out a game plan for those who are not.

Well, I guess the LIBOR was a made up thing anyway; but now the LIBOR is being completely replaced by the Secured Overnight Financing Rate. So may the LIBOR rest in peace forever, but as it's resting, what will that mean for new debts issued? Find us on Twitter, Instagram, & Facebook (Meta) @DRUNKENOMICAL Merch: Drunkenomics.myspreadshop.com Patreon: patreon.com/drunkenomics Stay Drunkenomical y'all!

By the end of 2021, it’s anticipated that these rates will be discontinued, transitioning to the Sterling Overnight Index Average, or SONIA for short, and, for US Dollar benchmarks, the Secured Overnight Financing Rate, SOFR). But what does this mean for trade finance, trade finance documents such as Master Participation Agreements, products, and what are the current recommendations? Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e61-libor-transition-trade-finance/ 

The administrator of the London Interbank Offered Rate has made what was expected official: the widely used benchmark will cease publication, with certain Libor tenors ceasing as soon as the end of 2021. With the “Libor endgame” in its final stages, along with a welter of other Libor transition news in recent weeks, ABA VP and ARRC member Hu Benton joins the ABA Banking Journal Podcast to discuss: ICE Libor’s public consultation to cease publication of Libor tenors Supervisory expectations for how banks use Libor in the interim period before the rate ceases What regulators have said about banks’ use of alternative rates to the Secured Overnight Financing Rate, such as Ameribor or commercial paper The adoption of the ISDA protocol on fallback rates for derivatives The importance of educating clients about the Libor transition and what it means for them Resources from the Alternative Reference Rates Committee on SOFR adoption, contract fallbacks and other challenges Additional resources: Resources from the ARRC (contact Hu Benton at hbenton@aba.com to join a working group) ABA resources on reference rate transition

Welcome to Part II of the Odd Lots LIBOR series, in which Tracy Alloway and Joe Weisenthal take a look at life after LIBOR, the interest rate tied to more than $350 trillion worth of financial assets. Troubles with LIBOR have kickstarted a massive project to transition to a new benchmark interest rate for financial markets. On the second episode of our series, we speak with Joe Abate, money market strategist at Barclays, about the proposed replacement known as the Secured Overnight Financing Rate, or SOFR. How is it different to LIBOR and what are the downsides of having an interest rate tied to actual marketplace transactions?

Dan Fitchler, AVP of Housing Finance Policy, MBA and Tim Kitt, SVP of Pricing and Execution, Single-Family, provide an update on the efforts across the industry to replace LIBOR with the GSE-supported overnight SOFR framework. Hear what's staying the same and what may be changing to ensure a successful transition to SOFR before the end of 2021.

Financial institutions will move away from Libor, a reference rate that tracks nearly $400 trillion in financial contracts, in just a few years and Goldman Sachs still sees the group adopting the Secured Overnight Financing Rate, or SOFR, despite the recent volatility in the relatively new benchmark. In the episode, Goldman's head of Libor transition, Jason Granet, discusses how prepared the banking industry is for the transition away from Libor, what Goldman is doing today ahead of the move and how the recent volatility in SOFR doesn't change its status as the true replacement for Libor in the U.S., even over alternative benchmark rates that gained some prominence.

The London Interbank Offered Rate (LIBOR) is set to be phased out within three years, creating arguably the biggest challenge facing global finance today. Moving away from a benchmark referenced in everything from consumer loans and mortgages to $190 trillion of interest rate derivatives has far reaching consequences. In the United States, J.P. Morgan has been providing leadership to develop a market around a new dollar reference rate called the Secured Overnight Financing Rate, or SOFR.  In this episode, we unpack the challenges ahead with guest-speaker Nadine Bates, mortgage-finance firm Fannie Mae’s Treasurer, and Sandie O’Connor, who has worked at J.P. Morgan for over 30 years and chaired the Alternative Reference Rates Committee (ARRC). O’Connor and Bates discuss why the ARRC selected SOFR as the U.S. dollar alternative reference rate, how to prepare for 2022, and issuance to date. Fannie Mae pioneered the market’s first ever SOFR securities. This podcast was recorded on February 15th, 2019. The views in this podcast do not necessarily reflect the views of JPMorgan Chase & Co. or its affiliates. This communication is provided for information purposes only. JPMorgan Chase & Co. or its affiliates (collectively, J.P. Morgan) normally make a market and trade as principal in securities, other financial products and other asset classes that may be discussed in this communication. For additional disclaimers and regulatory disclosures, please consult:  https://www.jpmorgan.com/country/US/en/salesandtradingdisclaimer. For further information about benchmark reform and the transition away from LIBOR, please visit https://www.jpmorgan.com/global/markets/libor-sofr © 2019 JPMorgan Chase & Co. All rights reserved.

$200 trillion of financial contracts and securities are tied to LIBOR and that matters to everyone – small businesses, corporations, banks, dealers and investors. At SIFMA's 2018 Annual Meeting, Sandie O’Connor and David Bowman discuss how the Alternative Reference Rates Committee of the Federal Reserve - known as ARRC - is leading the U.S. transition the Secured Overnight Financing Rate, or SOFR. Sandie is the Chief Regulatory Affairs Officer for JPMorgan Chase & Co. and chair of the ARRC. She also serves on SIFMA’s Board of Directors and is chair of our global affiliate, GFMA. David is a senior advisor at the Board of Governors of the Federal Reserve System and is the senior staff liaison to the ARRC. Their conversation is moderated by Randy Snook.

Eric Talley, Co-Director of the Millstein Center for Global Markets and Corporate Ownership at Columbia Law School, discusses the debut of the Secured Overnight Financing Rate, which will eventually replace Libor. Plus, Peter Henning, a professor at Wayne State University Law School, discusses a former Washington D.C. consultant who is being charging with leaking government information to hedge funds. In his defense, David Patton, the attorney for David Blaszczak has argued that “D.C. is the town that never shuts up.” They speak with Bloomberg's June Grasso.

Eric Talley, Co-Director of the Millstein Center for Global Markets and Corporate Ownership at Columbia Law School, discusses the debut of the Secured Overnight Financing Rate, which will eventually replace Libor. Plus, Peter Henning, a professor at Wayne State University Law School, discusses a former Washington D.C. consultant who is being charging with leaking government information to hedge funds. In his defense, David Patton, the attorney for David Blaszczak has argued that “D.C. is the town that never shuts up.” They speak with Bloomberg's June Grasso. Learn more about your ad-choices at https://www.iheartpodcastnetwork.com