Reading the commentary of an economist for one of the interdealer brokers, Tullett Prebon, makes me think that our central bank and Treasury get their ideas from these wholesale market intermediaries… from Reuters…
~~How G20 can unfreeze credit and cut bailout costs
By: Lena Komileva
Tags: General, bank bailout, G20, quantitative easing, TALF, toxic assets
~~~~”….Central banks can support this credit easing strategy by acting as market makers for structured notes, i.e. bundles of new “insured” corporate and consumer loans. This would ensure liquidity in secondary markets.Since we first made this argument at the start of 2009, Western governments have announced a constellation of schemes that seek to free up finance in the real economy.The Fed has launched a $1trn Term Asset-Backed Securities Loan Facility (TALF) scheme and the Bank of England has launched credit quantitative easing. There are important steps that will materially improve market conditions, but more is needed….” ~~~~
– Lena Komileva is Head of G7 Market Economics, Tullett Prebon –
Tullett Prebon operates as an intermediary in wholesale financial markets facilitating the trading activities of its clients, in particular commercial and investment banks. The business now covers the following major product groups: Volatility, Rates, Non Banking & Sterling Cash, Treasury, Energy, Environmental, Credit, and Equities. Tullett Prebon’s electronic broking division offers electronic solutions to these products. In addition to its brokerage services, Tullett Prebon offers a variety of market information services through its IDB Market Data division, Tullett Prebon Information.
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