Primer: Basics Of A Swap Meltdown — Brian Romanchuk

Summary:
I am now seeing more attempts to dig into what exactly happened in the United Kingdom interest rate market. In this article, I am not attempting to do that. Instead, I am just giving a primer on how interest rate swaps are used to hedge liabilities, and what can go wrong when interest rates rise. The mechanisms I describe were likely part of the issue, but I am not saying that this is “the” explanation. Since most people are unsure what liability-driven investment and swaps are, so I am hoping to cover big picture issues for those readers.…Bond Economics Primer: Basics Of A Swap MeltdownBrian Romanchuk

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

NewDealdemocrat writes March JOLTS report: declines in everything, fortunately including layoffs

NewDealdemocrat writes Manufacturing treads water in April, while real construction spending turned down in March (UPDATE: and heavy truck sales weren’t so great either)

Eric Kramer writes Eric Segall tells us what he really thinks about the Roberts court

Angry Bear writes Supreme Court watchers mollified themselves (and others) with vague promises