Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
Over the past two weeks, Maiden Lane I made a scheduled payment on its loan from the New York Fed of nearly $500 million, dropping the net holdings and the outstanding balance to $29 billion and $28.3 billion, respectively. Also, as the remaining central bank liquidity swaps were set to expire within this most recent period, the European Central Bank has drawn extra dollar liquidity through two swap operations. The terms were for seven-day swaps both weeks at a rate nearly 1.18 percent. As had been announced in the Federal Open Market Committee (FOMC) statement, the Fed will use proceeds from its agency debt and agency mortgage-backed security (MBS) holdings and reinvest them in Treasury securities. There were two operations each of the past two weeks, and the results can be seen on the New York Fed’s website. Thus far in the program, there have been nearly $10 billion in Treasury purchases to make up for a similar decline in the holdings of agency debt and MBS. AIG has paid back an extra sum of the outstanding balance on its revolving credit facility. AIG’s aircraft leasing company, International Lease Finance Corporation, sold more than $4.4 billion in debt, and AIG used $3.9 billion of the proceeds to repay the New York Fed. The balance fell from $23.5 billion to about $19.4 billion. The small-scale operations designed for reverse repurchase agreements (reverse repos) were completed this week, dropping the outstanding balance back to zero. A statement from the New York Fed was released during these small-scale operations, defining the money market mutual funds that had been accepted as counterparties for reverse repos.