Tuesday, July 24, 2012

CFTC coming under pressure to finalize derivatives regulation

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Here is an update on the implementation of the Dodd-Frank derivatives regulation (part of the financial reform and consumer protection law...

iTraxx - CDX spread blows out again

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This is not a surprise, but the market is now assigning a significantly higher probability of default to European investment grade corpora...

Eurozone banks are pulling out of the US

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Back in December we discussed how lack of access to dollar funding will push Eurozone banks out of the US. That's not because these ba...

Structured products for nervous investors

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Structured products for retail investors are back. For those who have some extra money, there are always structured CDs (like this one fro...

Spain's CDS spread moving toward Portugal's

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It's become the "new normal" watching Spain's yields hit new highs on a daily basis. It's an unsustainable process a...

More on QE raising bank leverage

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An earlier post on how additional QE would cause bank leverage to increase, potentially curbing lending seems to have started quite a dis...
Monday, July 23, 2012

The euro is no longer a "risk-on" asset

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The euro has completely decoupled from other financial instruments that would be classified as "risk-on" assets.  Risk-on/off se...

Outright asset purchases by the Fed will increase US banking system leverage ratios and potentially limit lending

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There seems to be quite a bit of confusion about the impact of US banks' deposits at the Fed on the overall bank credit. People are as...