While we can't know exactly what's pushing banks to the SNB for $s, we have an idea why it's happening at all. Collateral shortages have to be widespread.

i nostri legami fanno schifo pic.twitter.com/N0u3pIWO89

— Jeffrey P. Snider (@JeffSnider_AIP) October 15, 2022

This is why the Fed hates LIBOR – not because of any crime, rather it reminds everyone the Fed isn't a central bank. LIBOR is the eurodollar rate where actual monetary system. And when it goes wrong, all the Fed has is useless reserves. pic.twitter.com/XAqao0Zd4G

— Jeffrey P. Snider (@JeffSnider_AIP) October 15, 2022

The Fed's dollar swaps (central bank liquidity swaps; foreign exchange swaps; whatever they want to call them) don't work. But why?

Let me show you – or, let the FOMC show you.https://t.co/IGk57FfOZ3

— Jeffrey P. Snider (@JeffSnider_AIP) October 14, 2022