Trust, Treasuries and Trump

Trust is perhaps the most important quality of rich countries. We investigate what that might (or might not) have to do with a country’s ability to borrow.
Continue reading: Trust, Treasuries and Trump

Trust is perhaps the most important quality of rich countries. We investigate what that might (or might not) have to do with a country's ability to borrow.

Continue reading: Trust, Treasuries and Trump

An auction addendum…

So, while we were knee-deep in game theory trying to determine the best way to sell gilts, the Bank of England had some trouble buying them.

The BoE’s purchase of long-term government debt fell short of target Tuesday, which is noteworthy for plenty of reasons. One is that it’s yet another sign of that safe-asset shortage. But the thing is, the competitive bids are intermediated by banks and dealers. And that calls attention to a BIS paper from last month, which shows the results aren’t always pretty when economic policy collides with the zero-sum world of trading.

Continue reading: An auction addendum…

So, while we were knee-deep in game theory trying to determine the best way to sell gilts, the Bank of England had some trouble buying them.

The BoE's purchase of long-term government debt fell short of target Tuesday, which is noteworthy for plenty of reasons. One is that it's yet another sign of that safe-asset shortage. But the thing is, the competitive bids are intermediated by banks and dealers. And that calls attention to a BIS paper from last month, which shows the results aren't always pretty when economic policy collides with the zero-sum world of trading.

Continue reading: An auction addendum…

How much auction information is too much?

Some people aren’t terribly happy with the way government debt is sold in the US and UK. Some even say using auction data and game theory that full pre-auction informatoin sharing between dealers and investors would raise $4.8bn more revenue for the US…

Some people aren't terribly happy with the way government debt is sold in the US and UK. Some even say using auction data and game theory that full pre-auction informatoin sharing between dealers and investors would raise $4.8bn more revenue for the US Treasury each year than a fully closed bidding mechanism where no information is shared.

Continue reading: How much auction information is too much?