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...The top US consumer finance watchdog has raised doubts about megamergers in the credit card industry, just as Capital One attempts to close its $35.3bn takeover of card issuer Discover Financial Services...
...Last year, it closed its flagship Asia V buyout fund after raising $7.1bn, eclipsing its targets....
...Switzerland’s financial regulator has attempted to block the release of key documents to investors who are suing it after $17bn of bonds were wiped out in the rescue of Credit Suisse....
...or burning through their short-term credit facilities....
...JPMorgan Chase spent about a year discussing a possible deal with Discover Financial before Capital One agreed a $35bn bid for the credit card company, as the largest US bank pursued ways to get control...
...US lender Capital One has agreed to buy rival Discover Financial for $35.3bn, in an all-stock tie-up that is set to unite two of America’s largest credit card companies....
...Third, financial product innovation is a vital enabler....
...Assuming one turn of leverage on average and including dry powder but excluding ca $133bn of middle-market CLOs, here’s what JPMorgan came up with: Does this latest figure matter to anyone but financial...
...The most recent examples of risk management failures in financial institutions are the collapses of Silicon Valley Bank and Credit Suisse last year....
...One good read Soumaya Keynes on the Jamaican debt miracle....
...This is a classic “dull but v v v v important” issue that rarely gets the attention it should, because a lot of people understandably lose the will to live as soon as you start talking about financial plumbing...
...The Credit Suisse experience was one reason why “we do want to remind investors that [bank] debt is at risk and we do have a resolution process”, Gruenberg added....
...leading to the fall of Credit Suisse and saddened by the fact that the Swiss are not providing more transparency — Emmental is the one with holes....
...Capital One Financial, which is buying rival Discover Financial Services, is up 50 per cent. Americans held more than $1.1tn on their credit cards at the end of 2023, an all-time high....
...Capital is only one input into that risk assessment, and arguably it is a relatively small one. Silicon Valley Bank failed due to mismanagement of interest rate risk....
...financial crisis....
...Like I think there are two components to the shadows, to the privateness of private credit, right? One is that there’s no ticker....
...Capital One’s $35.3bn proposed takeover of Discover Financial Services would fuse two leading credit card lenders and give it control of a network that connects consumers, merchants and banks....
...The catch is that companies — especially lower-rated ones borrowing in private credit markets — have less ability to cover interest payments as rates climb....
...The bank is specifically focusing on private credit as one of its major engines of growth....
...Most of the people who said there was excess return to be harvested argued, in one form or another, that those returns were functions of frictions in lending markets, frictions private credit funds could...
...Some 33.8mn adults in the UK, or 64 per cent, have at least one credit card, according to price comparison website Money.co.uk....
...A boom in private-credit CLOs, for one, would create demand for more frequent liquidity than what’s available from most funds today....
...One of the few left, Vanquis — formerly Provident Financial — has tried to clean up its reputation and become a regular bank funded by its depositors....
...But, of course, there’s a reason why it’s widely called Shitibank; the sprawling, gormless Citi has for a v v v very long time proven adept at blithely ambling onto various rakes around the world....
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