Mar 19, 2025

I recently learned that banks and credit unions took advantage of the Federal Reserve’s Bank Term Funding Program (BTFP) to earn free money by borrowing from the Fed and then lending it back at higher rates. The program allowed lenders to borrow against U.S. Treasury bonds and mortgage-backed securities, leading to peak borrowing of nearly $170 billion. The terms of the program created an opportunity for lenders to exploit the system and increase their net borrowing significantly.

Deutsche Bank highlighted the impact of President Trump’s popularity on the stock market, suggesting that a decline in popularity could lead to policy changes affecting market dynamics. Despite recent market turmoil, some Wall Street strategists maintain a bullish outlook for the S&P 500, with Deutsche Bank setting a year-end target of 7,000 for the index. In another development, Google agreed to acquire cloud security firm Wiz for $32 billion, marking Alphabet’s largest-ever acquisition.

In the realm of funding rounds, various companies like Lightspeed, HSG, Galaxy Ventures, and others led investments in startups across different sectors. Notable funding rounds included Kela, NymCard, TurinTech, Gradial, VulnCheck, Seadronix, Occuspace, Evera, and Vibrant. Additionally, private equity deals saw acquisitions and investments by companies like Argent LNG, Cenosco, Energean, and others, showcasing continued interest in innovative startups and established companies.

An interesting concept emerged with an ETF named $LUCKY, which invests in short-term treasury bonds until the Powerball jackpot reaches a certain threshold, at which point it allocates 10% of its assets to buy lottery tickets. The idea aims to provide exposure to the lottery within an IRA, but concerns about the risk of losing 10% of the fund and regulatory challenges remain. Discussions also revolved around the role of investment banking staffers who coordinate work between senior and junior bankers, as well as potential risks associated with overnight trading in the stock market and the advancement of artificial intelligence in selling AI models to enterprise customers.

Stay Well!