From "small leek learning circle"
Q
Head brokerage improve what the original intention and the impact of short-term financing bills maximum balance of this policy is that?
A
In order to suppress the risk of transmission is the contractor of the event. I think this was interpreted as it is supported by brokerage, brokerage good for something, was not intended such a thing children.
After the contractor banking problems, pledge financing market was very nervous. Like brokers, fund these non-Bank institutions, especially small non-silver bodies, is integrated into the party funds, banks generally as the financial capital of the party. Bonds in the non-small silver agencies pledged good will, to borrow financing, maturity and commitment to buy back the mortgage bonds. After the accident contractor, bank financing pledge to tighten risk control, and one is to improve the pledged bonds rating requirements, such as the original AA + coupons are willing to take, the job is now to be AAA; the other is to reduce the pledge of the pledged bonds ratio, which for the prior pledge rate is relatively high, relatively tight financial institution is a small non-silver nightmare, not the money suddenly melt before the pledge repurchase expired, and no money to buy back, so there was pledged back purchase event of default. This is why I speak before the public number, do not buy a small company recently fixed income products and money funds.
To prevent the risk of proliferation, regulators called the bank fund companies and brokerages as well as several heads to a meeting, said the meeting points: First, to ensure that the requirements AfDB pledge repurchase of default, but also support their own money shareholders support , lends top; two out side is required not to melt off the loan, by which still have to borrow requirements ADB head mechanism also rich melt out, the back support mechanism small.
So why raise the head of the brokerage's short financial balance, that is, the use of the head of a large credit institutions to give more money to the market, then come back to support the entire ADB pledged repo system no systemic risk, here on the clear understanding a.
Many times we see a very simple writing financial news, behind a lot of things are not explained by looking at the contents of that increase to broker financing is to encourage and support the broker, it will cause misunderstanding friends.
Follow-up influence contractor or with a lot of events, but do not speak so much news. These measures to block out the risks of follow-up, does not mean that there are other issues of small institutions to be saved, there is the problem of the takeover of the bankrupt or to get the bottom line is not systemic risk, only a little question, and then point to get rid of, can not let even point into the net.