Banks Can’t Get Enough Double-A-Plus Rated Debt


Banks own more Treasuries now than basically ever before, as it seems Standard & Poor’s didn’t consider that Dodd-Frank was basically just a scam to force banks to buy up the stuff even though it makes no economic or business sense whatsoever.

The most likely catalyst is the need to begin complying with a new type of bank liquidity rules. This will require the biggest U.S. banks to hold a portfolio of assets that could be easily sold to make up for cash outflows in a stress period that lasted 30 days.

Banks Drink Deep From Uncle Sam’s Debt Fountain [WSJ]



Jeff Gundlach Thinks You’re All Acting Like A Bunch Of Bill Grosses

The Treasury-shorting sheep are gonna get sheared.