Good writeup. One comment on HQLA for LCR- Ginnie Mae bonds count as Level 1 and get the full 100% value. But agree that it was poor thinking not to include FNMA/FGLMC bonds in that bucket...guess it does help improve rates to lower-quality borrowers at the margin by forcing banks into GNMA.
Good writeup. One comment on HQLA for LCR- Ginnie Mae bonds count as Level 1 and get the full 100% value. But agree that it was poor thinking not to include FNMA/FGLMC bonds in that bucket...guess it does help improve rates to lower-quality borrowers at the margin by forcing banks into GNMA.
Yep. Like exiles.