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McKinsey & Company Report: Mapping Global Capital Markets 2011
The 2008 financial crisis and worldwide recession halted a three-decade expansion of global capital and banking markets. The total value of the world’s financial stock, comprising equity market capitalization and outstanding bonds and loans, has increased from $175 trillion in 2008 to $212 trillion at the end of 2010, surpassing the previous 2007 peak. Similarly, cross-border capital flows grew to $4.4 trillion in 2010 after declining for the two previous years. In its 2011 updated analysis of more than 75 countries on the size of their outstanding equity and debt, cross-border capital flows, and the stocks of foreign investment assets and liabilities, McKinsey Global Institute finds that the recovery of financial markets remains uneven across geographies and asset classes and significant risks remain. Emerging markets account for a disproportionate share of growth in capital-raising as mature economies struggle. Debt markets remain fragile in many parts of the world—the growth of government debt and of lending in China accounts for the majority of the increase in credit globally.
See the entire report here.
-- Christine Nielsen
Lead Stories
Analysis: Obama, Bernanke out of ammo to boost jobs, growth
By Alister Bull and Jonathan Spicer, Reuters
The United States has a jobs problem and there's not a lot President Barack Obama or Federal Reserve Chairman Ben Bernanke
can do about it.
http://jlne.ws/n2kECx
Treasuries: 'It's pretty grim'
CNN Money
It's ugly out there. Treasury prices have spiked -- then spiked some more, pushing the 10-year Treasury yield down to a nine-month
low of 2.57% Tuesday.
http://jlne.ws/oCPRXg
15-year fixed-rate mortgage at record low
By Amy Hoak, MarketWatch
Rates on 15-year fixed-rate mortgages and 5-year adjustable rate mortgages hit record lows this week, after signs surfaced that the
U.S. economy is weaker than previously thought, Freddie Mac‘s chief economist said on Thursday.
http://jlne.ws/ooLR1C
Plunging Mortgage Rates Won't Juice Housing
By: Diana Olick, CNBC
The one positive in all the uncertainty surrounding the nation's debt was a plunge in Treasury yields, which in turn sent mortgage rates
to record lows.
http://jlne.ws/oLf9Mh
Commercial/multifamily loan originations rise 107% in Q2
By KERRI PANCHUK, Housing Wire
Commercial and multifamily mortgage originations grew 107% in the second quarter compared to the year-ago period as financials
on all property types experienced greater stability and demand, according to the Mortgage Bankers Association.
http://jlne.ws/oabJiv
Sea Change in Map of Global Risk
BY MATTHIEU WIRZ AND MATT PHILLIPS, WSJ
The black-and-white borders of the bond market are graying. As the pristine credit rating of the U.S. remains under threat, and the
debt crisis in Europe rolls on, investors, traders and policy makers are grappling with fundamental changes in the global bond
markets.
http://jlne.ws/pd6Cqu
Japan acts to tame yen, follows Swiss move
By Stanley White and Leika Kihara, Reuters
Japan sold one trillion yen ($12.5 billion) and loosened its monetary reins on Thursday, joining Switzerland in efforts to tame
currencies buoyed by safe-haven demand from investors fretting about the deteriorating health of the global economy.
http://jlne.ws/nZ6K10
ECB buying bonds, increases liquidity to banks
By Marc Jones, Reuters
The European Central Bank resumed buying government bonds from the market and offered a new round of funding to commercial
banks on Thursday in response to a worsening euro zone debt crisis.
http://jlne.ws/r9woim
Trichet Says ECB Resumed Bond Buying as Debt Crisis Spreads
By Jana Randow and Jeff Black, Bloomberg Businessweek
European Central Bank President Jean- Claude Trichet said the ECB has resumed bond purchases and will offer banks more cash to
stop the region’s debt crisis from engulfing Italy and Spain and hurting the economy.
http://jlne.ws/nh4w52
Treasury Resumes SLGS Sales
By Lynn Hume, The Bond Buyer
The Treasury Department resumed sales of state and local government series securities Tuesday night after President Obama signed
legislation to increase the federal debt limit beyond $14.3 trillion.
http://jlne.ws/qUZYtI
Obama signs debt limit compromise
By Brian Montopoli, CBS News
President Obama signed a hard-fought, last-minute compromise bill to avert economic catastrophe Tuesday, saying the deal to cut
spending and increase the nation's $14.3 trillion debt limit marked an "important first step to ensuring that as a nation we live within
our means."
http://jlne.ws/roJ9Re
No Day in Court for Bank Clients
BY ROBIN SIDEL, WSJ
Some small and regional U.S. banks are prohibiting unhappy customers from taking their complaints to court or joining class-action
lawsuits, instead requiring them to resolve disputes through arbitration. The banks are emboldened by a U.S. Supreme Court ruling in
April that said state laws can't supersede private contracts that require customers to present their complaints individually to an
arbitrator.
http://jlne.ws/p9SQWP
Fitch Comments on U.S. Debt Ceiling, Deficit Reduction Agreement and Sovereign Rating
Reuters/ Press Release
Fitch Ratings says that, as it expected, agreement was reached on an increase in the United States' debt ceiling and, commensurate
with its 'AAA' rating, the risk of sovereign default remains extremely low. While the agreement is clearly a step in the right direction,
the United States, as in much of Europe, must also confront tough choices on tax and spending against a weak economic back drop if
the budget deficit and government debt is to be cut to safer levels over the medium term.
http://jlne.ws/nQKnL7
Fitch Says U.S. Debt Deal ‘Commensurate’ With AAA Rating
Forbes
One of the three major credit ratings agencies is out with a signal that Congress’ deal to raise the debt ceiling will be enough to
maintain Uncle Sam’s AAA credit rating, for now.
http://jlne.ws/qrtI4p
Riley Of Fitch Ratings Says U.S. AAA Rating Not `Secure' Over Medium Term [Video]
http://jlne.ws/n9LclX
Moody’s puts Spain on review for downgrade
By Richard Milne in London and Sarah Mishkin in Hong Kong, Financial Times
Spain became the latest eurozone country to feel the pressure of credit rating agencies as Moody’s warned it was at risk of a
one-notch downgrade. The move follows a similar warning to Italy in June and comes as the eurozone’s third and fourth biggest
economies have endured a torrid time in the markets, as their borrowing costs shoot up.
http://jlne.ws/qobcZu
IMF Statement On U.S. Agreement To Raise Debt Ceiling
Press Release
http://jlne.ws/rd3tah
SIFMA Statement On Passage Of Debt Ceiling Agreement
Press Release
http://jlne.ws/qMpwMW
Forget About The Debt Ceiling Debate, Where’s The Economic Growth?
By Kevin Mahn, Forbes
It is my contention that the market has essentially priced in the belief that an agreement on raising the current debt ceiling will happen.
It is just now a question of when the agreement will be finalized and what the length and terms of the finalized agreement will be.
Unfortunately, the finalization of the agreement may not be enough to avert further consideration of a downgrade to the U.S. AAA
credit rating by the rating agencies.
http://jlne.ws/q9r6Ab
Lagarde role into Tapie affair to be probed
By Jennifer Thompson and James Boxell
http://jlne.ws/nDDo4g
Lagarde warns EU to speak with one voice
By Alan Beattie, Financial Times
Christine Lagarde, managing director of the International Monetary Fund, has said European authorities must ‘stick to the script’
European authorities should stop public bickering and speak with one voice to make the second rescue package for Greece work,
warned Christine Lagarde, the new managing director of the International Monetary Fund.
http://jlne.ws/qKL2Si
Where does our national debt come from? | The White House
http://jlne.ws/qmeeVm
Remarks by the President on the Status of Debt Ceiling Negotiations | The White House
Good morning, everybody. I want to speak about the ongoing and increasingly urgent efforts to avoid default and reduce our deficit.
Right now, the House of Representatives is still trying to pass a bill that a majority of Republicans and Democrats in the Senate have
already said they won’t vote for. It’s a plan that would force us to re-live this crisis in just a few short months, holding our economy
captive to Washington politics once again. In other words, it does not solve the problem, and it has no chance of becoming law...
http://jlne.ws/o6uuPt
Pressed by White House, Treasury Chief Expected to Stay On
By JACKIE CALMES
Timothy F. Geithner, the Treasury secretary and dean of President Obama’s economic team, is expected to stay through the
president’s term after intense White House pressure, according to officials familiar with the discussions.
http://jlne.ws/pCIElN
A Renewed Focus on the Fed’s Role
By BINYAMIN APPELBAUM and CATHERINE RAMPELL, The New York Times
Even as Congress escapes from its brush with default, political divisions have all but immobilized the levers of fiscal policy, raising
pressure on the Federal Reserve to address the nation’s economic lethargy.
http://jlne.ws/rr9KQo
Stock markets fall again in early trading
Los Angeles Times
Stock markets plunged this morning, with the Dow down about 250 points, as increasing pessimism about the economy overtook
investors around the globe.
http://jlne.ws/opzyj9
PIMCO | Investment Outlook - Kings of the Wild Frontier
“Over the years we’ve had some fun together – killin some ‘bars,’ drinkin moonshine – some even in these chambers. (Whiskey that
is – the ‘bars’ I’ve seen once or twice, but only when I was plum drunk). But the time for funnin is over. They’ll be no jokes from
David Crockett today.” Davy Crockett Speech to Congress, 1830. Figurative coonskin cap on head, I echo the sentiments of Davy
Crockett – Indian fighter, Alamo defender and Tennessee Congressman – not necessarily in that chronological order.
http://jlne.ws/plyaho
Investment banks hampered by high fixed costs
By Megan Murphy in London, Financial Times
European investment banks are being squeezed by fixed administrative expenses even as they slash pay and staff amid weak trading
conditions. Credit Suisse on Thursday became the latest bank to announce significant job cuts, revealing it was shedding 4 per cent of
its global headcount, about 2,000 employees, following a 52 per cent fall in net profits in the second quarter.
http://jlne.ws/psVNkv
OTC derivatives debate to cast light on swaps and futures
By Aline van Duyn, Financial Times
Nearly a year ago, BlackRock, one of the world’s biggest investment managers, sparked a fierce debate in the derivatives industry,
which continues to this day. In the wake of the financial crisis, regulators, politicians and some financial market participants had come
to view the privately traded, over-the-counter (OTC) derivatives markets as dangerously opaque and illiquid. To make it safer for the
financial system, there was a push to introduce many of the features of the exchange-traded, regulated futures markets to OTC
swaps.
http://jlne.ws/qsm85R
Some Bankers Never Learn
By GRETCHEN MORGENSON, NY Times
YOU’D think the mortgage bust would qualify as a teachable moment. But some people refuse to learn from mistakes — a list that
apparently includes certain mortgage bankers. Their industry is fighting a new rule that might prevent a repeat of the lending binge that
helped drive our economy off a cliff.
http://jlne.ws/qwEFaQ
Events
Making Sense of Credit Default Swaps
August 10, 2011
www.theIFM.org
Valuation and Pricing Methodologies of Debt Instruments - Auction Rate Securities
September 1, 2011
Madison Street Capital (MSC) Is Lead Presenter In This Financial Research Associates Webinar Segment
http://jlne.ws/pxF2sq
FIA Treasury & Rates Forum
September 14, 2011FIA Program On Growing Role Of Treasury Futures - New York City
http://jlne.ws/fQFQXP
SEFCON II
October 3, 2011
WMBAA To Examine Role And Operation Of Swap Execution Facilities Under Dodd-Frank
http://jlne.ws/pY4N7S
Economic News
Heatwave boosts July US retail sales
By Barney Jopson, FT.com
http://jlne.ws/ojRgl4
U.S. manufacturing growth slows
DANIEL WAGNER, The Globe And Mail
Manufacturing activity in the U.S. barely grew in July, falling to the weakest level since just after the recession ended, a private trade
group said Monday.
http://jlne.ws/pckcDl
Data Reinforce Economic Malaise
BY CONOR DOUGHERTY AND JEFF BATER, WSJ.com
Americans stepped up their saving in June and cut spending, in a broad retrenchment that is both a cause of the slowing economic
recovery and a reaction to it.
http://jlne.ws/peGEIZ
Economy in U.S. Grows Less Than Forecast
By Shobhana Chandra, Bloomberg
The U.S. economy grew less than forecast in the second quarter, after almost stalling at the start of the year, as consumers
retrenched. Gross domestic product climbed at a 1.3 percent annual rate following a 0.4 percent gain in the prior quarter that was
less than earlier estimated, Commerce Department figures showed today in Washington. The median forecast of economists surveyed
by Bloomberg News called for a 1.8 percent increase. Household purchases, about 70 percent of the economy, rose 0.1 percent.
http://jlne.ws/qsr0u7
Exchanges, Clearing Houses & MTFs
TriOptima and LCH.Clearnet terminate SwapClear USD interest rate swaps with notional principal value of $7.1 trillion
Press Release
Japan sold one trillion yen ($12.5 billion) and loosened its monetary reins on Thursday, joining Switzerland in efforts to tame
currencies buoyed by safe-haven demand from investors fretting about the deteriorating health of the global economy.
http://jlne.ws/ntJSFf
CME Globex Enhancements for Interest Rate Products
Press Release
Effective Sunday, August 7, 2011 (trade date August 8), CME Globex enhancements to our CBOT interest rate products will take
place. Enhancements to our CME products will take place on Sunday, August 21 (trade date August 22).
http://jlne.ws/rbGdUg
Average daily volume of 10 million contracts at Eurex Group in July
Press Release
July volumes grew at Eurex Exchange and ISE/ Eurex Exchange: KOSPI Product with new peak in volumes
http://jlne.ws/oTK2SN
ELX ANNOUNCES JULY RESULTS WITH YEAR OVER YEAR GAIN IN ADV IN U.S. TREASURIES AND
EURODOLLAR FUTURES
Press Release
New York, Aug 1, 2011 – ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today solid July results with
strong yearoveryear average daily volume (ADV) performances in U.S. Treasury and Eurodollar futures contracts. ELX traded
1.2M contracts in July and celebrated its second year anniversary as an electronic futures exchange on July 10.
http://jlne.ws/o3Df6c
DTCC Greatly Expands Historical CDS Data Available On Website
By Katy Burne Of DOW JONES NEWSWIRES
The Depository Trust and Clearing Corp. has expanded the suite of data it makes publicly available on credit default swap
transactions, allowing interested parties to see weekly data going back to 2008. Until the change Tuesday night, buyers and sellers of
CDS as well as market observers could see net notional values for the most recent week, the prior week, the month before the
relevant date and for one year ago to that date.
http://jlne.ws/pKNeWs
A Derivatives-Trading Pioneer Looks to Launch New Venture
By KATY BURNE And JACOB BUNGE, Dow Jones
Sunil Hirani, a pioneer in the electronic trading of credit derivatives, is heading a new venture that aims to support the shift of
interest-rate swap business onto the screen from the telephone, according to people familiar with the situation. Mr. Hirani, 43 years
old, is returning to an entrepreneurial role in the derivatives sector after last year leaving Creditex, the dealer-to-dealer
credit-default-swap broker he co-founded and later sold to IntercontinentalExchange Inc.
http://jlne.ws/nz7r8e
Firms & Banks
Deutsche Bank Said Likely to Wait Until Next Year to Name Jain’s Successor
By Aaron Kirchfeld, Brett Foley and Jacqueline Simmons, Bloomberg
Deutsche Bank AG (DBK), Germany’s biggest bank, will probably wait until next year to name a successor to Anshu Jain at the
helm of the corporate and investment bank, three people familiar with the matter said.
http://jlne.ws/omAinH
MF Global Plans Bond Sale With Coupon Tied to Corzine’s Role
By Tim Catts and Matthew Leising, Bloomberg
MF Global Holdings Ltd. plans to sell bonds with an interest rate that will rise if Chairman and Chief Executive Officer Jon Corzine
receives a federal appointment from the U.S. president.
http://jlne.ws/qnSFit
Lind-Waldock Changes its Name to MF Global
Press Release
MF Global Holdings Ltd. (NYSE: MF), a broker-dealer providing trading and hedging solutions, today announced that
Lind-Waldock, the firm's flagship U.S. retail business, has changed its name to MF Global, effective immediately. Lind-Waldock was
acquired by MF Global in 2005.
http://jlne.ws/cto7bF
Five banks sign up to new EuroCCP service
By Philip Stafford, Financial Times
Five of Europe’s largest trading banks have agreed to use EuroCCP, the European clearing house, amid signs that a new system
designed to give traders more choice over where their trades are to be cleared is developing early momentum.
http://jlne.ws/riuAxS
Auerbach Grayson Launches Emerging And Frontier Market Fixed-Income Platform
Press Release
NEW YORK - Auerbach Grayson and Company LLP, a New York-based brokerage firm that specializes in providing global
trade execution and locally-generated research to US institutional investors, has launched a global fixed income and sales trading
platform for frontier and emerging markets.
http://jlne.ws/nEzD5B
N Rock expects to make profit by 2012
By Adam Jones, Financial Times
Any buyer of Northern Rock would have to endure losses until the second half of next year, the state-owned savings and mortgage
bank said on Wednesday.
http://jlne.ws/pNifb7
Ex-UBS banker charged in tax evasion
Bloomberg News
A former UBS AG banker was indicted on a charge of conspiring to help wealthy Americans evade taxes by hiding accounts in a
smaller Swiss regional bank.
http://jlne.ws/qGiZEg
UBS Said to End Talks to Move to NYC’s World Trade Center
By David M. Levitt and Christine Harper, Bloomberg
UBS AG, Switzerland’s biggest lender, is no longer in negotiations to lease space at lower Manhattan’s World Trade Center,
according to a person with knowledge of the situation.
http://jlne.ws/p4CDum
UBS Hires Bank of America Executive
By DEALBOOK, NY Times
UBS has recruited Mike Stewart, co-head of global equities at Bank of America, to become co-head of global securities and head of
securities in the Americas.
http://jlne.ws/qD7ioQ
HSBC to Cut 25,000 Jobs
By JULIA WERDIGIER, NY Times
HSBC, the biggest European bank, plans to eliminate 25,000 jobs in the next two years as part of a wide-ranging cost reduction
program.
http://jlne.ws/pvoXnZ
Morgan Stanley fills senior role in US FIG team
Richard Partington, Financial News
Morgan Stanley has appointed a new head of its banks team within its financial institutions group in North America, a post that has
been vacant since the previous head, John Esposito, left the role more than 18 months ago.
http://jlne.ws/rof7Vt
Bank of America Merrill Lynch Names Peter Johnson Head of Global Futures and OTC Clearing
Bank of America Merrill Lynch announced today that Peter Johnson will join the company as managing director and head of global
futures and OTC clearing. In this role, Johnson will assume global responsibility for all futures, options and OTC derivatives clearing.
http://jlne.ws/nZFcUG
RBS recruits as rivals cut
Matt Turner, Financial News
Royal Bank of Scotland, the UK government-backed bank, is still hiring for all functions and in all regions in equities, according to
sources, as its rivals get ready to embark on a round of cost-cutting.
http://jlne.ws/rkCeAe
Barclays Profit Tumbles
BY MICHAEL HADDON AND MARGOT PATRICK, WSJ
Barclays PLC said Tuesday its first-half net profit fell 38%, as it set aside £1 billion ($1.63 billion) to compensate customers who
were sold faulty insurance products and amid a sharp decline in revenue at its key investment-banking unit.
http://jlne.ws/qcfzla
Barclays Cuts 3,000 Jobs on Revenue Hit
By Howard Mustoe and Gavin Finch, Bloomberg
Britain’s second-largest bank by assets, said it’s eliminating about 3,000 jobs this year as second-quarter investment banking profit
fell by more than a quarter.
http://jlne.ws/qjoYyS
Greek exposure weighs on BNP Paribas
By Jennifer Thompson in Paris, Financial Times
BNP Paribas, the biggest holder of Greek bonds among French banks, has made a E534m provision as part of a pledge to play a
role in the Greek bail-out plan. Nevertheless, the strength of France’s biggest bank was proved as it posted a resilient set of
second-half results. Net income for the second quarter of 2011 rose 1.1 per cent to E2.13bn ($3.02bn) on revenue down 1.7 per
cent to E10.98bn, just missing the consensus estimate of analysts.
http://jlne.ws/pHcCt9
Citigroup, Goldman Commercial Mortgage Bond Traders Depart
By Sarah Mulholland and Donal Griffin, Bloomberg
The heads of commercial mortgage bond trading for Citigroup Inc. and Goldman Sachs Group Inc. have left the firms this week as
the market is roiled by sovereign debt crises and new deals are cut back or put on hold.
http://jlne.ws/n2my3N
Goldman-Citi Offering Is Pulled Over Ratings
BY AL YOON, WSJ
Goldman Sachs Group Inc. and Citigroup Inc. pulled a $1.48 billion commercial mortgage-backed security from the market late
Wednesday after an 11th-hour internal review by Standard & Poor's, throwing the CMBS world into disarray.
http://jlne.ws/rmYTVC
Total ICAP Electronic Broking Volumes for BrokerTec and EBS Platforms Increases 35%
Press Release
ICAP, the world’s premier interdealer broker, announced today that total electronic broking volumes for the month of July on the
BrokerTec and EBS platforms reached US$884.4billion, an increase of 35% year on year. Total average daily volumes on the EBS
platform were $180.5bn, up 36% year on year.
http://jlne.ws/p7scqL
Regulators
U.S. Swaps Regulators to Seek Comment on Overseas Reach
By Silla Brush, Bloomberg
U.S. financial regulators are planning to seek comment on when Dodd-Frank Act rules for the $601 trillion swaps market apply to
international transactions or firms conducting business overseas.
http://jlne.ws/nRKlDU
Bank's Haldane makes case for counter-cyclical haircuts
Reuters
Regulating lending by imposing higher collateral requirements, or "haircuts", in times of rising asset prices could be a useful tool to
promote financial stability, a top Bank of England official said on Monday.
http://jlne.ws/qi4noj
St. Louis Fed’s Bullard Discusses Monetary Policy and U.S. Economy
Federal Reserve Bank of St. Louis
On Friday, Federal Reserve Bank of St. Louis President James Bullard delivered remarks titled “Views on the U.S. Economy: A
Four-Part Story” as part of the keynote monetary policy discussion at the 3rd Annual Rocky Mountain Economic Summit in Jackson
Hole. Bullard said that “monetary policy is on hold in an ultra-easy mode,” which is “an appropriate setting for monetary policy
today.” Regarding the economic outlook, Bullard discussed why U.S. economic performance will likely improve in the second half of
this year. He stated that three of the four key uncertainties that have plagued the U.S. economy since February have been largely or
partially resolved, while one of them—the U.S. fiscal situation—is still on the table. “Once this last uncertainty is resolved, the path to
faster growth may be open,” he said.
http://jlne.ws/pTFwu3
Irish financial regulation to be strengthened
By Brooke Masters and Sharlene Goff in London, Financial Times
Ireland’s central bank would be given expanded powers to investigate the financial sector, direct institutions to change their business
practice and fine or suspend those that misbehave, under a bill unveiled on Thursday.
http://jlne.ws/ndvuA
FSA publishes new rules for platforms
Press Release
The Financial Services Authority (FSA) has today published rules on platforms regulation. This follows a review of the regulation of
platforms in the context of the objectives of the Retail Distribution Review (RDR).
http://jlne.ws/q8sa2x
Buyside's worries on OTC derivatives
Financial Times
Financial regulation in the US, as set out by Dodd-Frank, has been delayed and the European Market Infrastructure Regulation
(Emir) has also been put back as regulators realise they need more time. Jane Lowe, director of markets at the Investment
Management Association, is keen regulators take the time to look at two issues for the buy-side - extra-territoriality - and whether
some institutions will be regulated under Dodd-Frank and Emir, and "portability" of OTC derivatives contracts - another emerging
hot issue.
http://jlne.ws/qiSOVL
Global News
Berlusconi Vows Not to Resign
By RACHEL DONADIO, The New York Times
As markets continued to hammer Italy, Prime Minister Silvio Berlusconi on Wednesday rebutted calls for his resignation, saying
Italy’s economic fundamentals were strong and pledging that his government was “up to the task” of fostering economic growth.
http://jlne.ws/nBqmvp
Industrial producer prices stable in both euro area and EU27
Eurostat
In June 2011 compared with May 2011, the industrial producer price index1 remained stable in both the euro area2 (EA17) and the
EU272. In May3 prices fell by 0.2% and 0.3% respectively. In June 2011 compared with June 2010, industrial producer prices
gained 5.9% in the euro area and 6.9% in the EU27.
http://jlne.ws/pZrBS7
UK Official holdings of international reserves July 2011 - HM Treasury
Link to PDF
http://jlne.ws/qqJ8tI
Spanish and Italian borrowing costs soar
By Richard Milne, Capital Markets Editor, Financial Times
Spanish and Italian borrowing costs hit fresh peaks on Tuesday for the euro-era as the European debt crisis shot back to the centre
of investors’ attention.
http://jlne.ws/nMHRXX
How Andy Haldane gets his haircut
Posted by Tracy Alloway, Financial Times
It’s no coincidence that with the shift to central clearing looming on the horizon, the Bank of England’s director for financial stability is
talking about this subject. Haircuts, that is.
http://jlne.ws/p0hTvd
French Banks, Insurers to Lose $4.2 Billion in Greek Plan
BY WILLIAM HOROBIN, WSJ
The head of the French Banking Federation, François Perol, Friday said French banks and insurers will lose around E3 billion ($4.23
billion) by writing down the value of Greek bonds as part of the country's rescue plan, but said French financial institutions remain
"solid" and have little exposure to Greece overall.
http://jlne.ws/pPFsDq
Clearstream facilitates creation of local Middle East Triparty Repo market
Press Release
Clearstream: Clearstream has facilitated the first triparty repo trade where cash is lent from a Middle East cash provider. The
National Bank of Abu Dhabi (NBAD) is the first financial institution in the region accepting Middle East counterparties as cash takers
and Middle East assets, i.e. sovereign and corporate bonds out of the Gulf Cooperation Council (GCC) area , as collateral. This first
trade of National Bank of Abu Dhabi as local cash provider settled on 7 July 2011 through the Clearstream Global Liquidity Hub
infrastructure. So far, Middle East financial institutions would usually trade (triparty) repos with counterparts and collateral outside the
Middle East.
http://jlne.ws/q4hWNl
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