$BTC : Treasury dealers’ financing burden can outlast their bond holdings, Fed study finds
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• Customer financing persisted beyond inventory effects in historical data, leaving Bitcoin spillover dependent on evidence from crypto credit markets.
• Federal Reserve staff research published Oct.
• 30 finds that Treasury dealers can keep financing customers' bonds after their own auction inventory has largely cleared.
• That lingering lending uses balance-sheet capacity, so falling inventories can give an incomplete picture of dealers' ability to finance Treasury positions.
• The study estimates that each dollar of Treasury coupon issuance expanded dealer balance sheets by about 21 cents, with roughly two-thirds attributable to client financing.
#Bitcoin #Institutions
Source - CryptoSlate
━━━━━━━━━━━━━━━━━━━━
• Customer financing persisted beyond inventory effects in historical data, leaving Bitcoin spillover dependent on evidence from crypto credit markets.
• Federal Reserve staff research published Oct.
• 30 finds that Treasury dealers can keep financing customers' bonds after their own auction inventory has largely cleared.
• That lingering lending uses balance-sheet capacity, so falling inventories can give an incomplete picture of dealers' ability to finance Treasury positions.
• The study estimates that each dollar of Treasury coupon issuance expanded dealer balance sheets by about 21 cents, with roughly two-thirds attributable to client financing.
#Bitcoin #Institutions
Source - CryptoSlate
