The Financial Times – Bonds won’t face QE cold turkey, but it will be painful Tightening by central banks will be gradual, but it will still be a headwind for markets The deceleration of QE should push government bond yields higher, not least because the reduction is predicated on inflation and economic activity remaining firm enough… Continue reading The Effect Of Reducing The Balance Sheet On The Markets
The Financial Times – At Jackson Hole, will Janet Yellen contradict… Janet Yellen? The passages about financial stability in the FOMC’s latest minutes were furthermore notable for how unthreatening the present conditions were portrayed as by participants — a potentially mildly elevated equity market, worries about real estate prices, a need to monitor lending standards, and that’s about it. These… Continue reading Remember That Yellen Once Said Monetary Policy Is Too Blunt An Instrument To Combat Financial Stress
The Financial Times – Dollar rebounds ahead of Jackson Hole meeting “If chair Yellen does allude to a steeper Fed tightening path, then not only would short-term US rates and the dollar move higher, but there is only one direction for risky assets, and that is down,” he said. “This is certainly the case if US… Continue reading The Dollar
The Financial Times – China’s cat-and-mouse game over capital outflows set to continue At the end of last week, Beijing fired off more detailed instructions on sectors where direct overseas investment is prohibited, restricted or encouraged respectively, leaving no doubt that the government is determined that there will be no going back to the events… Continue reading China’s Control Over Capital Flows
The Financial Times – Credit crisis led to a bonfire of the acronyms At the heart of the crisis was a collection of obscure acronyms which turned out to be WMD, weapons of mass financial destruction. Everyday loans, for cars, houses or office buildings, were rolled up into bundles which were then sliced into asset… Continue reading The Boom & Bust Of Securitization
Bloomberg Business – The Market Is Already Heeding Dalio’s Warning on Risk Volatility in stock, bonds and forex markets has bottomed out As billionaire hedge fund manager Ray Dalio joins a chorus of prominent investors saying it’s time to offload risk, gauges of sentiment show the market is already getting the message. Investors are no longer serenely sailing from crisis to crisis as… Continue reading The Chorus Of Bearish Warnings
Bloomberg – Big U.S. Banks Could See Profit Jump 20% With Trump Deregulation The deregulation winds blowing through Washington could add $27 billion of gross profit at the six largest U.S. banks, lifting their annual pretax income by about 20 percent. JPMorgan Chase & Co. and Morgan Stanley would benefit most from changes to post-crisis… Continue reading More On Deregulation Under Trump
The Wall Street Journal – Think Rates Are Going Up? Banks Don’t After years of waiting for interest rates to rise, some banks are lending as if that day will never come, loading up on a record amount of loans and securities that carry low rates for long periods. The percentage of bank assets that… Continue reading Banks Reaching For Yield
MoneyBeat (WSJ Blog) – Vanguard Reveals Plans for New, Low-Cost Bond ETF Vanguard Group unveiled plans Tuesday for a total-market corporate bond ETF that would offer the lowest expense ratio on the market. The planned launch is the latest effort by Vanguard to pressure fund company rivals on fees. The Vanguard Total Corporate Bond ETF… Continue reading ETFs Continue Undercutting Each Other
Bloomberg Business – Draghi Urges Open-Minded Central Banking as Economy Changes ECB president criticizes adherence to broken paradigms He also said studies show innovations such as forward guidance and the ECB’s 2.3 trillion euro ($2.7 trillion) bond-buying program, as well as the equivalent program undertaken by the U.S. Federal Reserve, have been successful in supporting the economy… Continue reading Draghi Swings Hard At His Critics
Bloomberg – Autonomous Said to Charge $1,000 a Stock Report Before MiFID Fee for read-only access to equity research starts at $50,000 Autonomous Research LLP is offering a pay-as-you-go model for its European equity product in the run-up to the MiFID II rules, which are set to shake up the way money managers pay for analyst reports, people… Continue reading Equity Research For $1,000 A Piece