Original article: https://www.money.it/Fed-repo-miliardi-Wall-Street
Translated from Italian to English using Google Translate (Italian Apes, feel free to correct)
The Fed has guaranteed repo for 400 billion in two days: what happens on Wall Street?
By Mauro Bottarelli (Money.it)
May 12th 2021
After yesterday's $181 billion, today another $209 towards 39 requesting institutions. Is someone running into margin calls that risk turning the snowball into an avalanche? Two clues: the greatest contribution to the record leap in inflation came from used cars (consumer credit). While the largest corporate bond ETF has just seen short interest soar over 20%. A tip: fasten your seat belts
https://preview.redd.it/g0g840rgtty61.png?width=680&format=png&auto=webp&s=1a3629686110ec4830068c0f6b54325eb8553d1a
It is not the deep red numbers of the indices that are scary, but what moves under the track. After the 181.8 billion in reverse repo kindly guaranteed by the Fed at zero interest to 28 financial institutions yesterday, it was repeated today. Another $ 209.25 billion at 0% against 39 bidders. In fact, in two days the Federal Reserve "lent" about 400 billion dollars to interest-free banks against collateral whose real mark-to-market seems to be implicitly priced in the crashes in progress. Translated further, someone in the last 48 hours had to cover something.
Most likely, margin calls ready to explode. Exactly as happened overnight on the Taiwan Stock Exchange. There is no point in using polite euphemisms: for two days in a row, someone on Wall Street was bailed out by the Fed. And to do so they were forced to field just under half a trillion dollars. It means that what was about to happen was of enormous magnitude. The mind obviously runs to the wild leverage of subjects like ARK Investment or Ponzi schemes like that of Archegos or Greensill. In short, Level 3. But unfortunately, perhaps what is taking place is the classic historical moment in which resorting to Occam's razor guarantees the most effective result. Quite simply, the system is imploding from its excesses. And, even worse, the Fed is increasing its exposure in an emergency and forced attempt to plug the biggest holes.
Today, the US CPI figure made an impression, the highest since 1981 with its + 0.9% on a monthly basis against expectations for 0.3%. But the disturbing data is contained in this
... keep reading on reddit ➡
Why is interpretation so hard? How will I remember the basics of so many standards? So many frickin proformas!!! How did y’all manage to pass this? IM LOSING MY MIND
If anybody could provide your two cents on how to conquer FR, please reply! There has got to be an easier way to do this.
Just tweeted at Maria Bartiromo and Charles Payne to remind them to investigate the blatant market manipulation. We need to bring more attention to the public to force agencies to act. It’s how things got rolling back in 2008.
Our company is evaluating Workday for Financials implementation. For key financial reports like Income statement (P&L), is it better to get that from WD or is Adaptive needed?
What advantage does Adaptive provide that WD doesn't as far as reporting is considered?
So is it just me who finds FR leaning towards theoretical aspects more than problem solving? It’s never about core accounting anymore, understand why it has “reporting” in its name.
So, the problem I’m facing is, at a first glance the problem looks do-able to me. But as I proceed, I can’t help but take a glance at the solution about how they present and assumptions they took.
I chalked out atleast thrice but it still seems to go over my head. Accounting was my first hand but FR seems to have taken a back seat?
Is it because of the theory? Is it concept related? Or is it the presentation?
How do you get grip over it? I’m flipping out because this is the only paper in group one where you can target an exemption realistically.
PS- I have self taught myself. No classes.
Yes, this is my second time today bitching about L2 FRA. Those CFAI FRA questions hurt my feelings lol, and now I'm mad.
Do any of you know any "crash course" type resources for FRA? I'm thinking an intensive ~10 hour program that really dives into the meat and potatoes of the subject. I know lots of you will immediately think of Mark Meldrum, and I know he's great but I will add that *time is of the essence*. Mark is amazing however his FRA package is like 25 hours long.
I ideally would like to find a condensed, highly efficiently communicated FRA seminar. Does anyone know of such material? There's tons of those on Youtube for level 1 but nothing to speak of for level 2.
How did you guys get better at FRA? Not sure what my issue is, but it's very hard for me to drill the FRA concepts in to my head. It's been my weakest section and continues to be so. I've put majority of my study time to get better at this shit and my scores do not improve at all. I'm stuck at 55%. I'm asking you guys please if you can help, how did you guys tackle this section and what made the biggest difference when you prepared for this.
So stocks related data is reported to FINRA every couple of weeks by the institutions. FINRA then released that information to the public, but there is a delay. For instance, data reported on March 15th for stuff that happened before then was released on March 24th. Data reported on March 31st will be released this Monday (April 12th).
Ortex and Fintel both get their information from FINRA.
Fintel reports the Short Interest %of Float as being the same, until FINRA updates.
Ortex has a metric called Estimated S.I. %of Float. That information is probably derived from the daily monitoring of short volume, which both Ortex and Fintel do.
But the actual reported Short Interest numbers can't officially change until FINRA releases the info.
The current Estimated Short Interest by Ortex is 82.1m. %of Free Float is 20.32% Those numbers are up significantly since the 49.3m reported on March 15th. It is important to note that the estimated numbers are for the current date, and the reported numbers that will be released on Monday will be for data reported on March 31st.
The estimated Short Interest by Ortex took a substantial dip following the March 15th reporting date, but then spiked up to levels higher than ever before around the 28th of March. So, I wonder how the data for the March 31st reporting will be represented. Will it be the actual numbers as they were on that day? If so, Ortex estimated that number just under 75m. Which is a big jump.
Another thing that has changed over time has been share ownership. AMC has had significant sell-offs by institutional shareholders... But who picked up those shares? Apes did. Institutional shareholders and hedgefunds will shuffle stocks around on a daily basis, thus adding to the volume of the day. True apes don't. Other than buying shares, apes do not add to the volume of the day. We don't do the thousands of buys and sells that drive up the intra-day volume, we just buy and hold.
As more apes own a progressively higher percentage of the stock (80something% now I think) the volume will drop. It has been dropping. There are less shares to play with, because apes hold so many of them.
Days To Cover is a number that we want to see go up. --This number is not an expiration date that a short position must close-- It is the estimated time that it would take to be able to get out of a short position, based on an average volume over the past days. It means, if Hedgie decided to close
... keep reading on reddit ➡Context: I found out about this individual who has embezzled some strata funds for his own personal use, as well as over-charging some of his neighbors for shared contractor services when he was acting as liaison. The affected amounts are small (<$2000), but the discovery is rather alarming given that the individual is refusing to own up to his conduct. Turns out this guy is a Personal Financial Planner. It seems like his actions are in direct violation of the Canadian Securities Institute's Code of Ethics for financial planners:
> 1.2 Act with dignity, integrity, professional competence and in an ethical manner when dealing with the public, clients, prospects, employers, and colleagues. You must use reasonable care and exercise independent, professional judgment.
Can the affected neighbors report the financial planner's conduct to the Institute, even though they weren't dealing with him in a professional setting? Or are there any avenues of complaint (e.g. with other regulatory bodies) that they can pursue? They are also considering small claims court to get the funds back (this is in BC).
Hi all, does anyone happen to have a copy of the solutions manual for Financial Reporting 3rd ed by Loftus et al. My other accounting textbooks had the solutions in the back but this one doesn't!
I am an old syllabus student. Wish to give November 2021 exams. By then, old syllabus will not be applicable hence I will have to study for new syllabus FR. Can anyone kindly guide me on this. How to go? Coaching or self study? and if self study, then which material to go with?
Thanks in Advance.
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