Somethingh Crazy Is Going On In Swedish Money Markets
TamFX:
It appears Swedish banks are falling over themselves to get rid of excess cash. We noted Swedish banks refusing to open bank accounts in September, and warned in October of a "giant wave of money" heading into Sweden thanks to the Riksbank-ECB policy divergence, and now, Swedish banks are paying each other to take cash off their balance sheets into year-end, as 1-week STIBOR crashes to -1.792%.
It appears Swedish banks are falling over themselves to get rid of excess cash. We noted Swedish banks refusing to open bank accounts in September, and warned in October of a "giant wave of money" heading into Sweden thanks to the Riksbank-ECB policy divergence, and now, Swedish banks are paying each other to take cash off their balance sheets into year-end, as 1-week STIBOR crashes to -1.792%.
In other words, "reverse window-dressing" as no one wants to show a negative carry asset on their balance sheet.
Its just because the swedish crown havnt been this high in like 30 years , we even went over the norwegian crown so its doomed to drop its rate and fall back to its original point.
timmyhanke:
Its just because the swedish crown havnt been this high in like 30 years , we even went over the norwegian crown so its doomed to drop its rate and fall back to its original point.
Its just because the swedish crown havnt been this high in like 30 years , we even went over the norwegian crown so its doomed to drop its rate and fall back to its original point.
Anyway, it is very strange how it happened
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It appears Swedish banks are falling over themselves to get rid of excess cash. We noted Swedish banks refusing to open bank accounts in September, and warned in October of a "giant wave of money" heading into Sweden thanks to the Riksbank-ECB policy divergence, and now, Swedish banks are paying each other to take cash off their balance sheets into year-end, as 1-week STIBOR crashes to -1.792%.
In other words, "reverse window-dressing" as no one wants to show a negative carry asset on their balance sheet.