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Statement from Secretary Steven T Mnuchin on the Primary Market Corporate Credit Facility

Statement from Secretary Steven T Mnuchin on the Primary Market Corporate Credit Facility
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A Colossal Theft In Pain Sight

The reopening trade still has legs

Market nervousness around another global COVID-19 flare-up has brought into question the sustainability of the economic reopening trade, and rightly so. Over the last 12 months, sectors such as airlines, cruise lines, hospitality and some segments of retail – all initially written off during the peak pessimism period of the first quarter of 2020 – have stormed back, producing handsome gains for those fixed-income investors who saw the deep value potential of those sectors. Now these hard-fought gains appear to be at risk.

Understanding how central banks use their balance sheets | VOX, CEPR Policy Portal

Stephen Cecchetti, Paul Tucker 01 June 2021 Since the Global Crisis, the size of central bank balance sheets has grown significantly. Traditional goals of price and financial stability are insufficient for assessing the success of modern central banking operations. This column introduces a new framework for categorising and understanding central bank balance sheet operations. Monetary policy decisions are separated from facilities for lender of last resort, market maker of last resort, providing selective credit, and ensuring emergency government financing. To maintain legitimacy and accountability, central banks should formally distinguish these operations by clearly setting out their purposes, objectives, and constraints.  Willem Buiter, Anne Sibert

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