Traditionally, large capital inflows are viewed as a macroeconomic management headache for emerging markets yet we would argue that current conditions provide a once in a lifetime opportunity to restructure the consolidated (central bank and treasury) sovereign balance sheet. Taking an integrated approach to sovereign balance sheet management will reveal gains from coordinated management of assets and liabilities while—if properly structured—clarify and strengthen the independence of both the central bank and treasury. Having seen this issue from both the Ministry of Finance or Treasury point of view and the Central Bank point of view, we can provide unique insights into ameliorating coordination conflicts that most advisors who come with a bias toward one side or the other simply cannot. We have provided advice on this issue on a bilateral basis in both Asia and Latin America and to regional groupings of clients through seminar formats.
Condensing the Fed's Balance Sheet is as Simple as This bit.ly/2mb1B9sFEDBala…1st March @ 01:13
If the Fed is thinking of shrinking its balance sheet anytime soon it ought to be reinvesting maturing proceeds in bills not notes and bonds22nd February @ 18:33
If German Treasury can issue 2yrs @ - 90 bps and place funds at Bundesbank @ - 40 bps, is it not an insult to fiscal probity not to do so?22nd February @ 14:00
Restructuring the Fed Balance Sheet Expeditiously: A Sensible Contingency Plan bit.ly/2fOdJrE13th November @ 04:01
Negative rates would be a lot more popular if central banks and sovereigns lent at them rather than borrowing at them30th August @ 21:43