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...Turkish sovereign dollar bonds maturing in March 2029 are at present trading with a yield of about 7.6 per cent....
...Markets at present anticipate three 0.25 percentage point cuts by the Fed and Bank of England this year, while for the European Central Bank it is closer to four....
...One person familiar with the restructuring said about 175 permanent roles were in jeopardy as a result of the changes, 150 of them in the risk division....
...Remember, the Covid-19 pandemic caused a crisis of almost every other kind, but big US banks didn’t collapse....
...A reversal of that status quo risked upsetting financial stability. But on Tuesday, after eight years in the negative, the Bank of Japan governor Kazuo Ueda pulled it off in smooth style....
...This indicates that the Alphaville post on how a partial World Bank guarantee might not actually be much protection against a restructuring led investors to price the Ghanaian 2030 bond in line with the...
...But there is a risk that these types of central bank intervention will become more common and persistent. Attempts to push central bank losses on commercial banks can also be a form of repression....
...Reza Baqir Former Governor, State Bank of Pakistan (2019-2022); Global Practice Leader of Sovereign Advisory Services, Alvarez & Marsal, Dubai, United Arab Emirates...
...The bank faced the wrath of thousands of customers and Germany’s financial watchdog BaFin as clients of its domestic retail division were locked out of their accounts for weeks, causing helplines to be overwhelmed...
...The 10 investment banks and proprietary traders are investing a combined $172mn for a 26 per cent stake in Lutnick’s venture, called FMX. The investment will give FMX a valuation of $667mn....
...Private investors have piled into UK government bonds this year to lock in attractive yields as the Bank of England has kept interest rates at a 16-year high....
...The bank reported a return on tangible equity — a key measure of bank profitability — of 12.3 per cent, down from 15 per cent last year but ahead of its target of more than 10 per cent for 2024....
...Then, from 2022 to 2023, fears of a recession due to central bank rate hikes and disagreement over the prospects of a soft landing kept markets highly sensitive to any indication of a downward inflection...
...Fewer than half had a currency risk management strategy, and only a third had senior staff dedicated to the risk management of the sovereign debt book....
...Recent comments by President Xi Jinping that the People’s Bank of China (PBoC) should launch a bond-buying programme to create more domestic liquidity may be the first sign that exchange rate targeting is...
...His comments underscore the divisions within the bank’s Monetary Policy Committee over how soon to ease policy as it prepares to set rates on May 9....
...This reopening of markets could provide a much-needed avenue for liquidity for lower-rated sovereign debt: “Hope for market refinancing could considerably improve the prospects of a host of mostly B-rated...
...An option — though remote for now — would be for China to create a bad bank tasked with managing and disposing of these bad sovereign loans....
...A Bank of America note published yesterday says: By a quirk of timing, the April energy price cap reduction is likely to help propel UK inflation to target, but things are not so pretty under the hood,...
...investors, including sovereign wealth funds, pension funds and central banks....
...“The Bank of Japan has had a zero-interest rate policy and it didn’t have a tiering system at the time so it’s perfectly logical.”...
...division in the country....
...Much of that stress came about because of the “doom loop” stemming from banks’ ownership of so much of the sovereign debt of their stressed home countries....
...American banks own a significant amount of US government debt. As the yield on that rises, the paper losses associated with the holdings rapidly multiply....
...gillan.tett@ft.com Letters in response to this column: IMF can help fix the system of sovereign debt restructuring / From Reza Baqir, Former Governor, State Bank of Pakistan (2019-2022); Global Practice...
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