Herman Sanne

“Activist Treasury Issuance” and the Duration Supply Drainage With the debt ceiling raised by $5 trillion, the Treasury is ramping up issuance—over $1 trillion expected in Q3—to rebuild its cash position (TGA). While this typically drains bank reserves and stokes liquidity…

Quarterly Refunding announcement next week - the two things investors should really pay attention to are the Q3-end TGA target and the buyback schedule. There’s room for a pleasant surprise. moneymechanisms.com/blog/e3398c33-…

Recent remarks by Fed Governor Christopher Waller highlight the central bank’s asset-liability mismatch - long-term assets backed by short-term liabilities - that has turned from profitable to problematic as interest rates rise. This imbalance has led to losses, deferred assets,…

The $34 Trillion Trade and the Booming Hedge Fund Industry Since 2023, U.S. hedge funds have ramped up their total market exposure by over $11.7 trillion, reaching a staggering $33.7 trillion. Fuelled by repo market access and leveraged trades like the Basis strategy, this boom…

Now that the budget bill has passed Congress, we can see what the projections look like for deficits, government debt, and debt service expenses. In brief, the bill is expected to lead to spending of about $7 trillion a year with inflows of about $5 trillion a year, so the debt,…

The Repo Market’s Silent Surge: A New Era of Liquidity The U.S. repo market—once a niche corner of finance—has quietly become a central pillar of liquidity. With daily volumes exceeding $8 trillion, it's now a key mechanism for funding U.S. debt and managing short-term cash…

As you begin to explore the architecture of our Financial system, it's hard not to feel overwhelmed by its sheer scale and complexity. And the Financial system is constantly in motion. Small changes in one part of the system can ripple across the entire landscape. Money is a…