Liquidity swap and M3: Difference between pages

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imported>Doug Williamson
(Mend link.)
 
imported>John Grout
(To add cross reference to Dvisia Money)
 
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Liquidity swaps typically refer to transactions which effect a liquidity transformation between:
''Economics.''
: an insurer (which has plenty of liquidity) and
: a bank (which is temporarily short of liquidity).


A broad measure of [[money supply]] which includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity.


This is usually done by exchanging high-credit quality, liquid assets such as gilts held by the insurer, with illiquid or less liquid assets, such as asset-backed securities (ABS) held by the bank.


== See also ==
* [[Broad money]]
* [[M2]]
* [[Divisia money]]


==See also==
[[Category:Context_of_treasury]]
*[[Asset backed securities]]
*[[Collateral swap]]
*[[Liquidity]]
*[[Liquidity insurance]]
*[[Repo]]
*[[Securities Financing Transactions Regulation]]
*[[Sterling Monetary Framework]]
*[[Stress]]
 
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 09:16, 7 April 2016

Economics.

A broad measure of money supply which includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity.


See also