Hints and tips:
...You could take a house, create a CDO [collateralised debt obligation], put a derivative on it and have a synthetic CDO squared. But somewhere — very tenuously — there was a house....
...Buyers of that debt could make big gains if the company goes on to make a recovery....
...Their allocations are also undergoing a big shift....
...Half a dozen lessons from 2008 have not been learnt. 1. There’s no such thing as risk-free....
...They were unable to meet calls for more collateral as gilt yields rose and prices fell....
...Their ownership of UK-quoted equities, meantime, has fallen from 21.7 per cent at the end of 1998 to just 1.8 per cent at the end of 2020....
...The day before, SVB revealed it had sold a bond portfolio at a $1.8bn loss and was looking to raise $2.25bn in new equity to shore up its balance sheet....
...Once again, it is the world’s poor who risk becoming collateral damage....
...Sterling’s value has roughly halved against the dollar since 2007, meaning big losses for anyone financing a London home purchase with a dollar mortgage over the period....
...But these bonds only used the underlying loans as collateral....
...have had a big impact....
...The resilience of the banking sector has been greatly strengthened since the financial crisis of 2007-08, with the loan-to-deposit ratios of big UK banks falling from 120 per cent in 2008 to 75 per cent...
...ICMA argued the shortage was distorting interest rates for prized collateral like short-term government debt, and pushing it well below the ECB’s deposit rate, which rose to 1.5 per cent last month having...
...So we saw UK mortgage rates start to hit 6, 6 and 1/2. I even saw 7% mortgage rates....
...In the easier days of 2007, a short term T-bill might be re-used as much as three times. By 2016, the re-use rate (a sort of inverse measure of trust) had dropped to 1.8 times....
...Among his prized holdings is a Bugatti Veyron that stickers at $1.9mn....
...And this is why it’s not a redux of the summer of 2007....
...gilts crisis: the big asset allocation rethink Lessons from the gilts crisis RIP ESG?...
...Wall Street shenanigans and subprime mortgages felt distant from the Horn of Africa. But eight months later, oil markets had begun to collapse....
...“Remember that problem of the rating agencies in 2007?”...
...Information technology is a quarter of the S&P and less than 1 per cent of the FTSE, and tech has done well in recent years....
...Anyone in the commodities world is experiencing a perfect storm as correlations suddenly shot to 1, which is never a good thing....
...Expect big price moves if peace talks fail and tanks start rolling....
...Adding to that difficulty is a big demographic shift....
...The UK’s 2007 summer floods — a once-a-century event — caused £1.5bn of damage to homes....
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