US banks rejig liquid asset allocations
Large US banks pulled cash from central banks and US treasuries in the final quarter of 2017, while increasing allocations to agency and corporate debt.
Lenders subject to the Federal Reserve’s liquidity coverage ratio (LCR) published mandatory disclosures this week describing the high quality liquid assets they have available to cover net cash outflows over a 30-day period of stress.
Across the eight US global systemically important banks (G-Sibs), Level 1 HQLA, which is made up of central
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