More on Libor and that Japan connection

October 17 is going to be a big day for global USD money markets. It’s the deadline by which prime money market reforms must adjust to floating NAV models, leaving only those funds investing in government securities able to offer par value protection. …

October 17 is going to be a big day for global USD money markets. It's the deadline by which prime money market reforms must adjust to floating NAV models, leaving only those funds investing in government securities able to offer par value protection. The likes of Zoltan Pozsar at Credit Suisse are expecting banks to lose a significant whack of unsecured bank funding as a result.

Continue reading: More on Libor and that Japan connection

Dollar surge pricing will be in effect through October

Note to global banks: the dollar is continuing to experience higher-than-usual demand, and will have surge pricing through mid-October, at least. That’s when new US money-market fund rules go into effect. After that, we’ll see how much cash is withdraw…

Note to global banks: the dollar is continuing to experience higher-than-usual demand, and will have surge pricing through mid-October, at least. That's when new US money-market fund rules go into effect. After that, we'll see how much cash is withdrawn from institutional prime funds -- a large source of non-US banks' dollar funding needs -- as a result of their newly floating net asset values and redemption gates and fees

Continue reading: Dollar surge pricing will be in effect through October