Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Hawkish Fed Faces New Challenge as US Treasury Examines Ways to Improve Market Liquidity

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Cross Asset Strategy

<ul>
<li>The significant incursion into the US Treasury market by the Fed has imparted legacy issues that potentially undermine its functionality.  Primary dealers' capacity to undertake market-making has been impaired. </li>
<li>Hedge funds are playing a larger role in the distribution and provision of price information of Treasuries to other investors via the use of leverage in the repo market.</li>
<li>Significant dysfunctionality in the US Treasury market has adverse implications for global liquidity due to its influence on riskier segments of the capital structure,  notably corporate bonds and equities. </li>
</ul>


The significant incursion into the US Treasury market by the Fed has imparted legacy issues that potentially undermine its functionality.  Primary dealers' capacity to undertake market-making has been impaired. 
Hedge funds are playing a larger role in the distribution and provision of price information of Treasuries to other investors via the use of leverage in the repo market.
Significant dysfunctionality in the US Treasury market has adverse implications for global liquidity due to its influence on riskier segments of the capital structure,  notably corporate bonds and equities. 


Testing Times Loom for US Treasury Market Functionality with Potential Global Consequences