This is the first time I’ve seen Wall Street banks clamor for the Fed to back off QE. The Fed struggles to keep the liquidity it created from going haywire.
Thank you so much for this explanation. I’m getting around it.
So, these bonds thst you said are being traded between banks — are the bonds themselves being traded as part of that previous transaction you mentioned? (The one where everyone makes money.) Or are they packaged into some kind of instrument?
I guess im trying to understand how they make money in those trades..
I have no idea what the exact methods are. The bonds themselves are traded between banks and individuals (companies/investors) and between the government and the banks, and between the government and individuals. There are different kinds of bonds with different features because at the end of the day they are products for sale. I'm sure they're often bundled into something else because that would make sense. But they could just sell some of them in bulk too.
I wish I knew more specifics but I weighed depth of knowledge with time watching dry financial videos.
Thank you so much for this explanation. I’m getting around it.
So, these bonds thst you said are being traded between banks — are the bonds themselves being traded as part of that previous transaction you mentioned? (The one where everyone makes money.) Or are they packaged into some kind of instrument?
I guess im trying to understand how they make money in those trades..
I have no idea what the exact methods are. The bonds themselves are traded between banks and individuals (companies/investors) and between the government and the banks, and between the government and individuals. There are different kinds of bonds with different features because at the end of the day they are products for sale. I'm sure they're often bundled into something else because that would make sense. But they could just sell some of them in bulk too.
I wish I knew more specifics but I weighed depth of knowledge with time watching dry financial videos.