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๐Ÿ“ˆ Macroeconomics

Free Credit Balances (a broker/dealer's liability to customers, which the customers can cash out on demand) in Customers' Securities Margin Accounts the lowest EVER in June. Likely means folks buying more securities or are covering margin requirements.

Free Credit Balances (a broker/dealer's liability to customers, which the customers can cash out on demand) in Customers' Securities Margin Accounts the lowest EVER in June. Likely means folks buying more securities or are covering margin requirements.

https://www.finra.org/rules-guidance/key-topics/margin-accounts/margin-statistics Wut mean?: According to FINRA Rule 4521(d), FINRA member firms with customer margin accounts must report by the last business day of each month: 1. Total debit balances in securities margin accounts. 2. Total free credit balances in all cash and
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
Debit Balances in Customers' Securities Margin Accounts increased by $37,058 million, 5.75% from May-June--the biggest jump since Dec. 2022. Implies that customers are borrowing more money from their brokers to buy securities on margin.

Debit Balances in Customers' Securities Margin Accounts increased by $37,058 million, 5.75% from May-June--the biggest jump since Dec. 2022. Implies that customers are borrowing more money from their brokers to buy securities on margin.

https://www.finra.org/rules-guidance/key-topics/margin-accounts/margin-statistics Source: https://www.finra.org/sites/default/files/2021-03/margin-statistics.xlsx Wut mean?: According to FINRA Rule 4521(d), FINRA member firms with customer margin accounts must report by the last business day of each month: 1. Total debit balances in securities
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
Inflation and Federal Reserve Alert! FOMC decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent.

Inflation and Federal Reserve Alert! FOMC decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent.

Source: https://www.federalreserve.gov/monetarypolicy/files/monetary20230726a1.pdf Wut mean?: * Economic activity is expanding moderately, with strong recent job gains and a low unemployment rate. However, inflation is high. * The Committee's objectives are maximum employment and a 2% inflation rate over the long term. The federal funds
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
BofA's Benjamin Bowler: Cost of betting on a stock-market crash is cheapest since 2008. โ€œSince our data began in 2008, it has never cost less to protect against an S&P drawdown in the next 12 months,โ€

BofA's Benjamin Bowler: Cost of betting on a stock-market crash is cheapest since 2008. โ€œSince our data began in 2008, it has never cost less to protect against an S&P drawdown in the next 12 months,โ€

Source: https://www.morningstar.com/news/marketwatch/202307251049/cost-of-betting-on-a-stock-market-crash-is-cheapest-since-2008-says-bofa Wut Mean?: The cost of hedging against a stock market downturn using S&P 500 put options is at its lowest since 2008, says Benjamin Bowler of BofA Global Research. * They state this low cost is due to a combination
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics
Liquidity Fairy Alert! Bank Term Funding Program usage rose this week ($102.927B vs $102.305B on 7/12), marking the 7th straight week over $100B. It's looking more and more like there's an over-reliance on Fed Funding.

Liquidity Fairy Alert! Bank Term Funding Program usage rose this week ($102.927B vs $102.305B on 7/12), marking the 7th straight week over $100B. It's looking more and more like there's an over-reliance on Fed Funding.

I believe this be a moral hazard. Good afternoon Superstonk, I hope everyone's day is going well--it's almost Friday! Borrowing from the Bank Term Funding Program is on the increase again! What we are monitoring: 1. Bank Term Funding Program (BTFP) 2. Discount Window/Primary Credit
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics

NY Fed reports US borrowing issues are rising: Rejection rate for credit applications is at 21.8%, highest since June 2018. Probability of loan application rejection has significantly increased across all loan types, reaching new highs.

Wut mean? Credit application rates in the past year have dropped to 40.3%, the lowest since October 2020, with declines in auto loans and credit card limit requests. * However, there was an increase in applications for credit cards, mortgages, and mortgage refinances. The overall rejection rate for credit applications
dismal-jellyfish ๐Ÿ“ˆ Macroeconomics