TWIST operation is bad for banks# Stock
s*e
1 楼
I think that is why banks are sinking now
Fed will sell short term bond to cover the cost to buy long term bond to lower the yield on long-term bond. This strategy is good to consumer and business, However, it is particular bad for commercial bank where they loan out long term loans by borrowing in short-term period.
Fed will sell short term bond to cover the cost to buy long term bond to lower the yield on long-term bond. This strategy is good to consumer and business, However, it is particular bad for commercial bank where they loan out long term loans by borrowing in short-term period.