tag:blogger.com,1999:blog-8261438457608174618.post7522524147267305732..comments2023-05-12T16:41:08.754+08:00Comments on Forecast Error: MF Global Is Going DownCCLuhttp://www.blogger.com/profile/08569770663341206042noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8261438457608174618.post-24568810709923064422011-11-02T13:22:29.282+08:002011-11-02T13:22:29.282+08:001. Yes, they do have access to the discount window...1. Yes, they do have access to the discount window of ECB, or so I believe. They need to worry about their capital adequacy ratio, which is not entirely about liquidity. When a bank needs to post more collateral for its own bonds, they cannot only use discount window to fulfill the needs.<br /><br />2. As far as I know, there are certain standard languages used in CDS. ISDA provides a standard form for it. However, it is neither exchange traded nor government regulated. You can get the quotes for a lot of CDS on sovereign or corporate bonds from the market, just like bonds themselves. They are still over-the-counter trades and usually don't have any regulation like national best bid and offer (NBBO) that NASDAQ has to obey.CCLuhttps://www.blogger.com/profile/08569770663341206042noreply@blogger.comtag:blogger.com,1999:blog-8261438457608174618.post-74098628795826888382011-11-01T19:12:14.128+08:002011-11-01T19:12:14.128+08:00Hi C.C.,
I would like to ask you 2 questions:
1....Hi C.C.,<br /><br />I would like to ask you 2 questions:<br /><br />1.<br />Do European banks have discount window with ECB? As far as I know they have, so why would they still worry about the short term funding when they can borrow fund from ECB?<br /><br />2.<br />I thought CDS are traded on the exchange, so the contracts are standardized, otherwise there would not be market quotes for CDS. But from your comment in the last post they sound like private contracts. So are they standardized?<br /><br />Thank you as always.楊大寶https://www.blogger.com/profile/04692847628587763718noreply@blogger.com