Remarks
This Dollar Shortage Isn’t Likely to Last
Global banks are likely to lend more once they close the books on 2017
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There’s a global dollar shortage. On Dec. 15, the cost of obtaining dollars using something called a cross-currency basis swap rose to its highest level since the European debt crisis of 2011.
“There’s never been a worse time to be buying Treasuries if you’re a euro-based investor,” my Bloomberg colleagues Brian Chappatta and Katherine Greifeld wrote last week.