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BOJ's Kuroda says premature to debate reducing its ETF holdings
Bank of Japan Governor Haruhiko Kuroda said on Wednesday it was premature to discuss how to reduce the central bank’s massive holdings of exchange-traded funds (ETFs). The BOJ already buys ETFs “quite flexibly” and can reduce purchases when the market risk premium is not rising, Kuroda told parliament. “If inflation hits our 2% target and an exit from our massive stimulus programme comes into sight, there will certainly be debate on how to end our ETF buying. But it’s premature to do so at this stage,” he said.
https://www.reuters.com/article/japan-economy-kuroda-etf/bojs-kuroda-says-premature-to-debate-reducing-its-etf-holdings-idUST9N2GT02I
09-0015 USAF C-32A departed JBA ws with SAM788 USAF G5 west behind it
LOKI82 USAF E-4B Nightwatch repeating the activity of yesterday with 09-0015 as an escort.
Will probably head sw to KY/OH border and then turn east and 09-0015 "should" return to JBA after the leg east with LOKI82 returning to Offutt
what sticks out the most is the constant statements the faggits make on the state of the board.
Trying so hard to keep that narrative alive…it's quite entertaining watching them flop around
back later
o7
Goldman Warns Of "Massive" $36BN Month-End Pension Selling, 4th Largest On Record
With month-end fast approaching, banks are publishing their estimates of what upcoming pension rebalancings will mean for stock and bond flows.
The first such forecast came from Goldman Sachs, whose month-end pension rebalancing estimates a net $36bln of equities to sell following a month of substantial outperformance of stocks vs bonds, according to NewsSquawk.
What is notable about the month-end rebal is that according to Goldman, this is the fourth largest sell estimate on record going back to 2000, and ranks in the 96th percentile among all buy and sell estimates in absolute dollar-value.
Here are the details:
*Goldman's model-based assumption estimates a net $36BN of equities to sell from pensions given the moves in equities and bonds over the month
*This is due to equity outperforming fixed-income by 10.45% (S&P total-return 10.50%, 10yr total-return 0.05%).
*GS says a mitigating factor may be the street gamma positioning, which is trending further into positive territory
To be sure, this is not the first time a bank has expected a major month or quarter-end selling rebalance only to see stocks rip into the event. Furthermore, now that pensions can pick and chose when they execute the rebalance, the probability that they will all wait until the very last minute is minimal especially with market liquidity back near dismal levels.
https://www.zerohedge.com/markets/goldman-warns-massive-36bn-month-end-pension-selling-4th-largest-record
New York transit agency to borrow a second time from Fed program
New York’s Metropolitan Transportation Authority (MTA) on Wednesday authorized an up to $2.9 billion borrowing from a U.S. Federal Reserve loan program to aid its coronavirus-battered budget. The new borrowing, which follows a $450.7 million MTA loan from the Fed’s Municipal Liquidity Facility (MLF) in August, would allow the cash-strapped agency to end its current fiscal year with a balanced budget, officials said.
https://www.reuters.com/article/health-coronavirus-new-york-transit/new-york-transit-agency-to-borrow-a-second-time-from-fed-program-idUSL1N2I42FL