{"id":1297522,"date":"2023-05-25T14:10:15","date_gmt":"2023-05-25T18:10:15","guid":{"rendered":"https:\/\/bugaluu.com\/news\/bank-bailout-facility-usage-hits-new-record-high-as-money-market-fund-inflows-soared-again-last-week\/1297522\/"},"modified":"2023-05-25T14:10:15","modified_gmt":"2023-05-25T18:10:15","slug":"bank-bailout-facility-usage-hits-new-record-high-as-money-market-fund-inflows-soared-again-last-week","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bank-bailout-facility-usage-hits-new-record-high-as-money-market-fund-inflows-soared-again-last-week\/1297522\/","title":{"rendered":"Bank Bailout Facility Usage Hits New Record High As Money-Market Fund Inflows Soared Again Last Week"},"content":{"rendered":"<div class=\"ftpimagefix\" style=\"float:left\"><a target=\"_blank\" href=\"https:\/\/www.zerohedge.com\/markets\/bank-bailout-facility-usage-hits-new-record-high-money-market-fund-inflows-soared-again\" rel=\"noopener\"><img decoding=\"async\" width=\"100\" data-entity-type=\"file\" data-entity-uuid=\"01ddb0cb-9ae3-4587-bf51-be598d530a0e\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm8F45.jpg?itok=7G-SHJZi\" alt=\"\"><\/a><\/div>\n<p><span class=\"field field--name-title field--type-string field--label-hidden\">Bank Bailout Facility Usage Hits New Record High As Money-Market Fund Inflows Soared Again Last Week<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>The last few days have seen the exuberance fade in regional bank shares as the brief short-squeeze ends and higher rates hint at increasing pressure on bank deposits (that we detailed last Friday).<\/p>\n<p>Tonight&#8217;s money-market flows data is certainly not going to help things at all as inflows soared by the most since the first week, <strong>up $47 billion to a new record high at $5.39 trillion&#8230;<\/strong><\/p>\n<\/p>\n<p><strong>Institutional funds saw $39.4 billion in inflows<\/strong> and retail saw $7.26 billion more inflows&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm40DF_0.jpg?itok=aX5WJ2qF\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm40DF_0.jpg?itok=aX5WJ2qF\" rel=\"noopener\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>This huge resurgence in money market fund inflows strongly suggests tomorrow&#8217;s H8 deposit report will show the bank walk\/run is continuing&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm99A1_0.jpg?itok=lH1qGRI6\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm99A1_0.jpg?itok=lH1qGRI6\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"6a18750f-ef82-4b42-8e01-50457e06557c\" data-responsive-image-style=\"inline_images\" height=\"317\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm99A1_0.jpg?itok=lH1qGRI6\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/releases\/h41\/\" rel=\"noopener\"><strong>The Fed&#8217;s balance sheet shrank once again,<\/strong><\/a> down $20 billion to $8.436 trillion&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm4CB1.jpg?itok=o9ZUe7Jd\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm4CB1.jpg?itok=o9ZUe7Jd\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"94e771bd-665d-48b3-945e-8894ce9d12ea\" data-responsive-image-style=\"inline_images\" height=\"305\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm4CB1.jpg?itok=o9ZUe7Jd\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>As far as QT is concerned, the Total Securities Held Outright dropped only $3.65 billion last week (notably less than the $29.89 billion the prior week) as QT started up again&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm9BA8.jpg?itok=iBkz1Wb9\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm9BA8.jpg?itok=iBkz1Wb9\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"30876907-c835-400b-aff0-6e9a79fabe50\" data-responsive-image-style=\"inline_images\" height=\"302\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm9BA8.jpg?itok=iBkz1Wb9\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>The US central bank had $96.1 billion of loans outstanding to financial institutions through two backstop lending facilities in the week through May 24, up slightly from the previous week.<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm5D.jpg?itok=DYlVSq8T\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm5D.jpg?itok=DYlVSq8T\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"bac20ee4-1cf6-4d17-9109-7a81e31c37e0\" data-responsive-image-style=\"inline_images\" height=\"306\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm5D.jpg?itok=DYlVSq8T\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p><strong>&#8230;with the Fed&#8217;s Bank Term Funding Program rising yet again to a new record high (up from $87 to $91.9 billion)<\/strong><\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfmEB08.jpg?itok=suazbN08\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfmEB08.jpg?itok=suazbN08\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"832416cb-8b6f-41f0-be4a-a5cc8dfde45d\" data-responsive-image-style=\"inline_images\" height=\"317\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfmEB08.jpg?itok=suazbN08\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>The Fed&#8217;s H4 table breakdown in details:<\/p>\n<ul>\n<li>\n<p>QT: $4BN drop in MBS<\/p>\n<\/li>\n<li>\n<p>Discount Window: down 45BN to $4.2BN<\/p>\n<\/li>\n<li>\n<p>BTFP: up $5Bn to $91.9BN<\/p>\n<\/li>\n<li>\n<p>Other credit extensions (loans to FDIC): $192.6BN down $16BN<\/p>\n<\/li>\n<\/ul>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/image%20-%202023-05-25T134432.724.png?itok=tUdLzvOg\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/image%20-%202023-05-25T134432.724.png?itok=tUdLzvOg\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"37c950c8-34d6-4a21-9807-0f9e6350ba95\" data-responsive-image-style=\"inline_images\" height=\"603\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/image%20-%202023-05-25T134432.724.png?itok=tUdLzvOg\" alt=\"\"><\/a><\/p>\n<p>US Bank reserves at The Fed dipped last week, stocks remain blind to it (for now)&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm541C_0.jpg?itok=wbwZtqcq\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm541C_0.jpg?itok=wbwZtqcq\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"acb718d7-2e12-474a-82e0-c0e679b1ca7f\" data-responsive-image-style=\"inline_images\" height=\"314\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm541C_0.jpg?itok=wbwZtqcq\" alt=\"\"><\/a><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/twitter.com\/hump_bear\/status\/1661543537895174144?s=20\" rel=\"noopener\">Former Dallas Fed head Robert Kaplan dropped some uncomfortable truth bombs on the US banking system<\/a>:<\/p>\n<blockquote>\n<p><strong><em>We are now heading into the third phase. <\/em><\/strong><\/p>\n<p><em>Bank leadership at small and midsize banks are <strong>considering how to shrink their loan books in order to address the mark-to-market loss of capital, as well as to guard against potential deposit instability in the future<\/strong>. <\/em><\/p>\n<p><em>Bank leadership is very aware that the economy is slowing, and that we are likely about to enter a challenging credit environment.<\/em><\/p>\n<p><em>While asset\/liability mismatches are relatively easy to spot, <strong>assessing the quality of loan portfolios is much more complicated<\/strong>. <\/em><\/p>\n<p><em>CEOs of many small and midsize banks are in a tough position. <\/em><\/p>\n<p><em><strong>They can&#8217;t easily raise equity because their stock prices are down.<\/strong> <\/em><\/p>\n<p><em>As a result, they are turning to <strong>shrinking their loan books, finding places to pull back on existing loans and future loan commitments<\/strong>. <\/em><\/p>\n<p><em>This is making it much harder for small and midsize businesses to get and keep their bank loans. <\/em><\/p>\n<p><strong><em>It is a quiet phase that won\u2019t make headlines but is nevertheless relentlessly going on beneath the surface.<\/em><\/strong><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/static1.squarespace.com\/static\/63c0b55f1e77917ba5b2e745\/t\/6468e7f937e55467ef91f677\/1684596737940\/Praxis+Sample+6.pdf\" rel=\"noopener\"><em>Read the full interview here<\/em>&#8230;<\/a><\/p>\n<\/blockquote>\n<p>We will find out if that is continuing to quietly occur as The Fed&#8217;s H8 report exposes the reality of bank deposits continuing to flow out and loan volumes declining.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a target=\"_blank\" title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" lang=\"\" class=\"username\" xml:lang=\"\" rel=\"noopener\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Thu, 05\/25\/2023 &#8211; 16:42<\/span><\/p>\n<p>From:<a href=\"https:\/\/www.zerohedge.com\/markets\/bank-bailout-facility-usage-hits-new-record-high-money-market-fund-inflows-soared-again\" target=\"_blank\" title=\"Bank Bailout Facility Usage Hits New Record High As Money-Market Fund Inflows Soared Again Last Week\" rel=\"noopener\">Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank Bailout Facility Usage Hits New Record High As Money-Market Fund Inflows Soared Again Last Week The last few days have seen the exuberance fade&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1297522","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5rxM","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1297522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1297522"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1297522\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1297522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1297522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1297522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}