Do Not Rule Out a Market Panic Next Month

Do Not Rule Out a Market Panic Next Month

By John Dizard
February 19, 2021, Financial Times

“Beware the Ides of March” (Julius Caesar, act one scene two)

Everybody seems to be having a hard time finding the most tradeable forms of dollar cash. In the financial markets this has led to a shortage of T-bills, the form of issuance that can be most readily used as collateral for other trades. As Zoltan Pozsar of Credit Suisse says: “The long, three-year period of front-end collateral glut, which lasted from 2018 [to the beginning of February] is over.”

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