5 sources of liquidity I’m monitoring since QE is out for now. Powell made it loud and clear. → End of QT The end of QT is enough to send everything flying. Q2. → Permanent SLR exemption Easing regulatory requirement for banks to maintain a certain level of capital against their assets. There’s been discussing this exemption, indicating possible policy changes in 2025 Good reference: → Discount window Fed to ask the banks to use the discount window on a running basis. DW is a central bank lending facility meant to help commercial banks manage short-term liquidity needs. Asking them will be a long term liquidity positive as it’s a legislative change. → TGA draw down It’s everywhere on X. Everyone talking about it. Good post from Thomas → Widening swap spread By adjusting bank capital costs, private sector liquidity will increase. Good reference: No matter how tight the situation, there will always be a way to kick the can down the road. Remain bullish.