07-08-2024 Liquidity is running dry, “It’s So Lonesome it Could Cry.”
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Hear that lonesome Repo well. It sounds too low to fly.

Last week, the implied likelihood of a September Fed rate cut rose to 73%. Over a week ago, it was 62%.

Bonds cry for a “higher for longer” Fed. But the fall of the dollar and the steadfastness for gold suggest that turmoil is ahead.

Recently, clogged bank balance sheets caused a spike in repo rates while reserve balances declined. Will the Fed accelerate the QT taper that it began in late 2023?

Liquidity is running dry, It’s So Lonesome it Could Cry.
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Song: I’m So Lonesome I Could Cry (1949)

Les Parker, CMB Managing Director, Transformational Mortgage Solutions

Les Parker is the Managing Director at Transformational Mortgage Solutions Advisory Board Member for Ainsworth Advisors; and has served as the Senior Vice President of Industry Relations and Consulting at LoanLogics, a technology and services provider focused on improving mortgage loan quality, performance, and reliability throughout the loan life-cycle. His responsibilities included managing the company’s life of loan analytics and monitoring capabilities, overseeing consulting services, contributing to the strategic planning team, and communicating with industry leaders to develop and maintain positive relationships. He focused on identifying threats and strategic opportunities.

Parker has executive mortgage banking experience in capital markets, servicing, operations, production, and financial management. Parker has served as director of the largest private issuer of CMOS. His educational background covers music, religious studies, mortgage banking, mathematics, and business administration. Parker holds a BBA in Finance, and other degrees, and has held numerous securities licenses. Parker is a Master Certified Mortgage Banker, a designation conferred by the Mortgage Bankers Association. Parker writes, speaks, and provides audio content,  Since the late 1980s, he publishes a daily newsletter connecting global macroeconomics to the US interest rate movement.