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<p>[QUOTE="GoldFinger1969, post: 5425099, member: 73489"]<b><span style="color: #0000ff">A bit more color:</span></b> many times, in my previous job (a few spots removed <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" /> ), I had to invest over the weekend for a large corporate client. The client was a PITA and used to wait until the last second -- the 3 PM EST Fed Wire deadline -- to let me know if they needed the money liquid or invest it. Used to drive me nuts, they were in California so to them they thought it was like making a 12 PM decision. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie4" alt=":mad:" unselectable="on" unselectable="on" /></p><p><br /></p><p>We're talking close to $1 billion or so, so the interest gained or lost (this was 20 years ago) over the weekend was <b><span style="color: #00b359">a few hundred thousand dollars</span></b>. Not chump change !</p><p><br /></p><p>Anyway....I remember one time they literally gave me the <i>"Go ahead, invest it"</i> order at like 2:58 PM or thereabouts. I had 2 minutes to get the trade done. By the time I called my trader/broker, we literally had seconds. So even though we invested in agencies and MBS (large, liquid vehicles), <b>we STILL moved the U.S. Treasury market (the guy selling me bonds was hedging by buying other stuff).</b></p><p><br /></p><p>My broker friend commented that investing $1 billion so close to the end of the day actually moved the market for U.S. Treasuries and Agency/MBS. A few basis points, not alot, but usually you need trades of $10 or $20 billion to move the markets that much.</p><p><br /></p><p>You can't do that kind of trade in Europe or in China/Asia. Central Banks, Sovereign Wealth Funds (SWFs), large institutions (mutual funds, pensions) and even billionaire investors or family offices and hedge funds....need liquidity.</p><p><br /></p><p>Only the U.S. financial markets -- and Great Britain, to an extent -- have that liquidity.[/QUOTE]</p><p><br /></p>
[QUOTE="GoldFinger1969, post: 5425099, member: 73489"][B][COLOR=#0000ff]A bit more color:[/COLOR][/B] many times, in my previous job (a few spots removed :D ), I had to invest over the weekend for a large corporate client. The client was a PITA and used to wait until the last second -- the 3 PM EST Fed Wire deadline -- to let me know if they needed the money liquid or invest it. Used to drive me nuts, they were in California so to them they thought it was like making a 12 PM decision. :mad: We're talking close to $1 billion or so, so the interest gained or lost (this was 20 years ago) over the weekend was [B][COLOR=#00b359]a few hundred thousand dollars[/COLOR][/B]. Not chump change ! Anyway....I remember one time they literally gave me the [I]"Go ahead, invest it"[/I] order at like 2:58 PM or thereabouts. I had 2 minutes to get the trade done. By the time I called my trader/broker, we literally had seconds. So even though we invested in agencies and MBS (large, liquid vehicles), [B]we STILL moved the U.S. Treasury market (the guy selling me bonds was hedging by buying other stuff).[/B] My broker friend commented that investing $1 billion so close to the end of the day actually moved the market for U.S. Treasuries and Agency/MBS. A few basis points, not alot, but usually you need trades of $10 or $20 billion to move the markets that much. You can't do that kind of trade in Europe or in China/Asia. Central Banks, Sovereign Wealth Funds (SWFs), large institutions (mutual funds, pensions) and even billionaire investors or family offices and hedge funds....need liquidity. Only the U.S. financial markets -- and Great Britain, to an extent -- have that liquidity.[/QUOTE]
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