i.e. Profit off the Govt.'s ridiculous monetary policy. This is precisely what Goldman Sachs studied and recommended to their clients and it would have yielded an 11% return for 2010 in 16 days of trading.
Today's POMO closed at a very light $1.66 billion, leading to a whopping 23.6x Submitted to Accepted ratio (on a massive $39.2 billion in submitted indications), which as we presented yesterday historically indicates a very weak outcome as the Primary Dealers will not be able to satisfy risk frontrunning capital requirements. And, as expected, the only two CUSIPS executed on, were within the list presented, with the 3/15/2013 receiving 70% of the take down. Overall a very weak POMO and one which would validate the current weak market action.
No comments:
Post a Comment