<Click on graphic for larger image> Bloomberg.com – Britain’s $1.8 Trillion Bond Market Ensnared in Brexit Battle Gilts pressured by rising inflation bets, tumbling pound BOE bond buying provides ‘artficial’ support: Algebris’ Gallo The prospect of a messy divorce between the U.K. and the European Union threatens to overwhelm support for nation’s bonds from the Bank of… Continue reading Brexit’s Aftermath
<Click on graphic for larger image> <Click on graphic for larger image> Bloomberg.com – Big Central Bank Assets Jump Fastest in 5 Years to $21 Trillion The world’s biggest central banks are bulking up their balance sheets this year at the fastest pace since 2011’s European debt crisis to boost lackluster economic recoveries with asset… Continue reading Central Bank Balance Sheets Still On The Rise
<Click on graphic for larger image> Bloomberg Business – Wall Street’s Wait for Bond-Trading Boost Starts to Pay Off Wall Street’s biggest banks have spent years waiting for the end of a slump in fixed-income trading. It’s finally paying off. Citigroup Inc.’s fixed-income revenue surged 35 percent to $3.47 billion in the third quarter, and JPMorgan Chase… Continue reading Trading Revenue Picks Up
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Bloomberg View – A Fed Divided Against Itself The gaps in perception reflect more than the inherent difficulty of making judgments about the potential for an increase in a labor participation rate that, disappointingly, is still too close to multi-decade lows. There is also genuine uncertainty about today’s process for setting wages, especially in the context… Continue reading A Fed Divided
Bloomberg Business – BlackRock to Vanguard Earn ETF Win in Fund Liquidity Rule SEC adopts rules to ensure mutual funds can meet withdrawals Regulator requested comments on funds with in-kind redemptions Many exchange-traded funds will avoid some aspects of sweeping new U.S. regulations meant to ensure that asset managers can easily meet investors’ redemption demands. The Securities… Continue reading ETFs
The Wall Street Journal – Deutsche Bank’s Top Investor, Qatar, Is Getting Worried About the Lender’s Outlook Qatari investors support management but seek assurances that lender is doing everything possible to resolve looming settlements Deutsche Bank AG’s biggest shareholders, investment vehicles controlled by the Qatari royal family, have recently expressed concern about the threat of… Continue reading Qatar Can’t Make Up Its Mind
<Click on graphic for larger image> Bloomberg Business – This Financial-Stability Metric Has the Fed’s Attention: Chart Minutes of the Federal Open Market Committee’s September meeting, published Wednesday, showed that “a few participants expressed concern that the protracted period of very low interest rates might be encouraging excessive borrowing and increased leverage in the nonfinancial corporate… Continue reading Financial Stability
The Wall Street Journal – Economists Believe a Recession Is Likely Within Next Four Years The U.S. must face one of two scenarios: Either the next president will face a recession in office, or the U.S. will have the longest economic expansion in its history. Odds are that the recession is more likely. Economists in The Wall… Continue reading Recession?
<Click on graphic for larger image> Bloomberg Business – 30% Junk Rally Gives Traders Heartburn It’s becoming difficult to see how the lowest-rated U.S. junk bonds can continue to rally. They’ve posted their best performance since 2009, with more than a 30 percent return so far this year. And now investors from Goldman Sachs Asset Management to… Continue reading The Junk Bond Rally
<Click on graphic for larger image> The Economist – Sterling: Taking a pounding The fall in sterling hints at how painful a “hard” Brexit would be RARELY do people compare the British pound to the Nigerian naira, Azerbaijani manat or Malawian kwacha. But on a measure of year-to-date change against the American dollar, sterling is near the… Continue reading The Latest Flash Crash – Sterling