Rethinking Leverage Ratios: Why US Treasuries Should Be Exempt
In this episode of The SIFMA Podcast, SIFMA Chief Operating Officer Joseph Seidel is joined by Dr. Guowei Zhang, Managing Director at SIFMA, to unpack the critical role of leverage ratios in the U.S. Treasury market – and why exempting them from leverage ratio calculations may be key to strengthening market resilience.Together, they explore:How current leverage ratio requirements, implemented in 2018, may limit banks’ capacity to intermediate in Treasury markets.SIFMA’s latest analysis quantifying the impact of U.S. Treasury holdings on bank leverage ratios.Evidence from the temporary…
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