Intro: “If you’re concerned the market will choke on the coming deluge of Treasury bills thereby putting upward pressure on global dollar funding rates, you should probably note that Zoltan Pozsar does not share your concerns.
And, as many market participants are aware, if what’s under discussion is money markets, and your view doesn’t conform to Pozsar’s, that divergence of opinion is tantamount to you being wrong.
In his latest note, out Thursday, the man who’s been variously described as the “oracle” of funding markets (or the “spider in the middle of the web”), builds on a foundation laid in his last two pieces, in the course of explaining why the market will digest $1.25 trillion in T-bill supply over the next two months with relative alacrity…”
“If the Fed is backstopping the credit market, why wouldn’t it backstop its natural habitat?”
Zoltan Pozsar On Money Market ‘Singularity’ And War Finance