bigboss
963 posts

bigboss
@bigbossblitar
(K.G.P.H) financial freedom






BREAKING: 655 large US companies have gone bankrupt this year, the highest rate in 15 years, according to S&P Global data.

Jan 1, 2026 another liquidity event. Beginning January 1, 2026, the recalibrated enhanced Supplementary Leverage Ratio (eSLR) standards for U.S. global systemically important banks (GSIBs) will take effect, with the leverage buffer reduced to 50% of each GSIB’s risk-based capital surcharge. The implementation of this rule is expected to significantly increase market liquidity, allowing banks to intermediate more aggressively in the U.S. Treasury and repo markets without previous capital constraints, and helping strengthen the resilience and vibrancy of the financial system. Yes its adds to liquidity!! This change means Treasuries will not bind capital requirements the way they have since Dodd Frank. Banks can use their own capital more freely to buy, trade, and intermediate Treasuries, restoring their ability to support Treasury market liquidity much like the pre-2010 regime. The leverage ratio will shift back to being a backstop rather than a binding constraint, especially for low-risk assets like Treasuries. Banks can act as dealers or principal traders in Treasuries without fearing excess capital charges, improving market liquidity and resilience.

















