The hottest Liquidity Substack posts right now

And their main takeaways
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Top Finance Topics

The Repo Market Rewire

Concoda • 264 implied HN points • 11 Mar 24
💰 Finance Monetary Policy Market structure Liquidity
  1. The Repo Market is undergoing significant changes, with a shift to a secured monetary standard and challenges in the system prompting new adaptations.
  2. The Repo Market has become more systemic and fragmented, with different regions defined by various participants, securities, and settlement methods.
  3. The presence of triparty and interdealer markets within the Repo Market highlights the importance of central clearing in reducing risks and enhancing liquidity among major financial players.

The Fed's Hidden Put

Concoda • 437 implied HN points • 18 Jun 23
💰 Finance Markets Liquidity Funding Monetary Policy Banking
  1. The repo market plays a crucial role in providing liquidity to the financial system globally.
  2. The repo market structure involves lenders like money market funds connecting with borrowers like hedge funds through various intermediaries.
  3. Recent changes in the repo market dynamics may lead to the Fed utilizing it as a tool for market stimulation.
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💥Bed Bath & Bagholders💥

PETITION • 569 implied HN points • 02 Apr 23
💰 Finance Investing Stocks Markets Bankruptcy Liquidity
  1. Hudson Bay Capital and BBBY structured a deal involving convertible preferred stock, benefiting Hudson Bay financially.
  2. BBBY raised $225mm to address credit issues and pay vendors, but needed more liquidity for a turnaround.
  3. The deal with Hudson Bay also included warrants to buy $800mm of preferred stock, with conditions to protect Hudson Bay's downside.

Is the Fed Financing the FDIC?

Without Warning • 176 implied HN points • 04 Sep 23
💰 Finance Federal Reserve Insurance Banking Liquidity
  1. The FDIC is primarily funded by banking industry fees, not congressional appropriation.
  2. During the Global Financial Crisis, the FDIC did not borrow money from the Fed but instead used clever financial maneuvers like prepayments to maintain liquidity.
  3. The FDIC may be utilizing the Fed's loans as a form of financing, with evidence suggesting that FDIC guarantees are used to back these loans, allowing for liquidity creation.

Understanding startup stock options: Part 1

Brick by Brick • 18 implied HN points • 19 Feb 24
💰 Finance Stock Options Taxation Valuation Liquidity
  1. Stock options are a key part of startup employee compensation, involving vesting schedules and the opportunity to buy company shares at a set price.
  2. 409A valuations determine the fair market value of a company's stock, influencing employee stock option prices and taxation.
  3. The 90-day window after leaving a company requires employees to decide whether to exercise their vested stock options or lose them, potentially facing significant financial implications.

💥New Chapter 11 Bankruptcy Filing - GOL Linhas Aéreas Inteligentes S.A.💥

PETITION • 19 implied HN points • 01 Feb 24
💰 Finance Bankruptcy Airlines Debt Liquidity Investment
  1. GOL Linhas Aéreas Inteligentes S.A. filed for chapter 11 bankruptcy with a $950 million DIP commitment.
  2. The airline's growth played a significant role in Brazil's air travel expansion but faced challenges with its fleet, especially with Boeing 737 models.
  3. To address financial struggles, GOL made efforts to secure liquidity, negotiate leases, and handle outstanding obligations.

The 4 Problems of Airdrops

DeFi Weekly • 235 implied HN points • 26 Apr 23
🔮 Crypto Liquidity Valuations Data
  1. Decentralisation theatrics don't necessarily protect against legal issues with airdrops.
  2. Airdrops can lead to early liquidity for team members and investors, impacting valuations.
  3. Inflated user counts from airdrops may not reflect genuine user ownership or value creation.

Too Big To Fail

The Last Bear Standing • 160 implied HN points • 10 Mar 23
💰 Finance Banking Bonds Liquidity Regulation Risk management
  1. In the mid-2000s, banks faced a significant problem with growing leverage and inadequate cash reserves.
  2. The 2008 financial crisis led to emergency bailouts to address liquidity issues in the banking sector.
  3. While regulations and liquidity injections have reduced the risk of widespread liquidity crises in large U.S. banks, the 'too-big-to-fail' problem persists in the broader financial system.

Banking on Pressure

The Last Bear Standing • 70 implied HN points • 12 May 23
💰 Finance Banking Policy Liquidity Deposits
  1. Both cash liquidity and solvency are crucial for banks. If customers or investors worry about either, they may withdraw funds or sell stock.
  2. Bank liquidity has been fluctuating, impacted by events like the pandemic and quantitative easing/tightening, leading to concerns about insolvency and the need for temporary borrowings.
  3. Deposit fluctuations in banks are tied to the Federal Reserve's actions like quantitative easing and tightening, with large banks experiencing the fastest decline in deposits.

Defensible NFT Bazaars: How NFT Marketplaces Capture Value

Unsyndicated by Mason Nystrom • 19 implied HN points • 05 Apr 23
🕹 Technology NFTs Marketplaces Liquidity Experiences Brand
  1. NFT marketplaces need to find ways to have unique liquidity to attract and retain users.
  2. Marketplaces can build defensibility through proprietary liquidity, enhanced NFT discovery experiences, and establishing strong branding.
  3. Creating unique NFT experiences, offering loyalty programs, and emphasizing trust and safety are key strategies for marketplace success.

Introducing the RON/PIXEL Liquidity Pool on Katana!

Ronin’s Newsletter • 0 implied HN points • 19 Feb 24
🔮 Crypto Liquidity Gaming Market
  1. RON/PIXEL Liquidity Pool is introduced on Katana DEX for swapping using Ronin Wallet, making it convenient for users.
  2. For those preferring RON | RONIN for trading over Binance, the RON/PIXEL pool offers an alternative trading option.
  3. $PIXEL, the in-game digital asset for Pixels.xyz, is now available for trading with a total supply of 5 billion tokens.

Improving valuations through better governance

Klement on Investing • 0 implied HN points • 19 Feb 24
💼 Business Governance Valuation Liquidity Corporate Governance
  1. Improving share liquidity may not be the best way to increase company valuations. Focus on improving corporate governance instead.
  2. Increasing share liquidity by reducing the bid-ask spread can lead to a significant increase in company valuation, compared to measures like larger boards or institutional ownership.
  3. Improving corporate governance, measured by indices like ISS Board Quality scores, can have a more significant impact on increasing company valuations than just focusing on liquidity.

Market Dynamics and Risks of Liquid Staking Derivatives

Coin Metrics' State of the Network • 0 implied HN points • 12 Mar 24
💰 Finance Cryptocurrency Market Dynamics Liquidity Risks
  1. Staking on the Ethereum network has seen significant growth, with 31M ETH staked on the Beacon chain, representing 26% of the supply.
  2. Liquid Staking Tokens (LST's) like Lido's stETH & wstETH have become a dominant form of collateral, with $9.5B in collateral across DeFi lending markets.
  3. Market risks associated with Liquid Staking Tokens include de-pegging, liquidity risk, and potential market instability during significant events like the Terra Luna collapse.