Jeff Snider, Head of Global Investment Research for Alhambra Investments with Emil Kalinowski, bond villain moonlighter. Artwork by David Parkins.
36.3 Are Japanese Banks Propping up the Chinese Yuan?
Japanese banks are borrowing from US banks at healthy rates (reflation!). The Chinese currency is appreciating at a healthy pace (reflation!). But there are few quirks, odds, ends, bits and bobs that remain in the shadows of the eurodollar.
00:05 Treasury International Capital Report September update.
02:20 Foreign official institutions are buy US Treasury securities recently – good!
04:27 Private (non-government) hands are selling US corporate bonds at historic rates – bad!
06:00 Eurodollar creation, distribution: US bank liabilities to the rest of the world
09:37 Eurodollar creation, distribution: Europe, the Caribbean, and Asia excluding Japan
14:38 Eurodollar creation, distribution: Europe, the Caribbean, and Asia including Japan
17:21 Conundrum: a Chinese currency is rising yet Chinese holdings of Treasuries are not; odd
21:19 Do listeners and readers have any idea what is happening
Redistributing A Shrinking Pie Is Nothing Like A Flood; Because There Was No Flood: https://bit.ly/338Bwfg
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7