BANK TREASURERS REMEMBER MARCIA STIGUM
This month’s newsletter recalls Marcia Stigum’s 1983 textbook, “The Money Markets,” which was “the” book to own on one’s bookshelf if one were working in a bank treasury office in the 1980s. In any case, she was very famous back then but today, her book is outdated and almost no one in the bank treasury world or greater financial markets ever heard of her. She wrote the book when the money market world was ruled by the Eurodollar market…
BANK TREASURERS AND THE KOBAYASHI MARU
The big news this afternoon is the Fed’s well-telegraphed rate hike, its 11th straight hike since it began raising the target Fed Funds rate in March 2022. But if bank treasurers were hoping for some sign from the Fed that there is a light at the end of the tunnel with these hikes, they are likely disappointed. The problem is that no one really knows where the Fed is headed, probably not even the Fed.
BANK TREASURERS STAY INDOORS
Well, the Fed finally paused, which judging by investor polls seemed to have been well-communicated. Bank treasurers informally polled by this newsletter could not have been surprised by the Fed’s statement that it was still weighing how much more to tighten rates in its fight against inflation, and not surprised by its “hawkish” pause.