from my post above, this is BOI booking the capital gain from selling the bond assets financed by “Repo QE” into “QE2”. Thus the trade is closed and the bank stops getting carry (it can do a new repo but yields are lower, hence the negative ECB rate to preserve some margin), but it can book the capital gain from having bought the 10 year bonds at 8% (via rolling repo) and selling at <1%.
This is all very interesting. You haven’t presented any evidence though.
See note 23. BoI had 577 m in deposits from monetary authorities in July, which is trivial in context of >100bn in liabilities. I have read through the liability side of its balance sheet. I cannot see where exactly the CBI or ECB could be stuffing large deposits.
If you can please let us know. Until then I call BS.
ECB repos (short term) are the bread and butter of the MRO.
The ECB doesnt actually do the repo, it’s decentralized i.e. it’s done at NCB level. That’s the (MRO) figures I quoted above which have fallen to just over 1bn per the last Irish Central Bank balance sheet.
Yes, I agree. The Governor should be concerned with policy mostly and a bit with senior appointments. All the day to day stuff should be delegated.
Since when have senior public officials been running a business? If the department of public expenditure was really run like a business, Watt would have been fired long ago for missing his targets. This is not a reflection on him, it’s a zoo he’s trying to run, but it’s not a business. On top of that, there’s nothing quite as dysfunctional as academia, so I imagine Prof. Lane is well used to arguments…
It’s all gibberish. Observer35 has a long history of posting incoherent babble about the ECB sourced from crypto-economic conspiracy sites like Zerohedge. Note how no actual evidence has been forthcoming for any claim.
I didn’t respond to past posts you made re how the ECB has flattened PIIG yields as: (1) you didn’t seem to have actual capital markets experience, and (2) i got tired trying to explain to you given your attitude (+confidence in it).
Irish bond auctions have nothing to do with the ECB repo program. You don’t need a bond auction to run a repo program (hence my comment in 1(1) above - it is a very naive statement regarding the issue at hand).
You should speak to someone in the bond desk / wholesale funding desk of a main bank (they are the only bond players left in this crazy market). They may have more patience for your approach then I. Although your attitude may need to change.
I disagree. Running a large public service organisation (1500 staff on CB) most definitely needs leadership and management skills. Of course day to day admin can be delegated but simply being an expert policy analyst does not a good CEO make. That doesn’t of course mean that Philip Lane doesn’t have the sort of skills required or won’t develop them, but its reasonable I think to question whether someone moving from being a professor in academia to running an complex organisation of 1500 (with the additional complexities that running a public service organisation entails) has the full complement of skills and experience necessary.