Hints and tips:
...“Banks have severely limited their exposure to this particular area of the credit market,” said Scott Kapnick, chief executive of HPS, referring to junior credit, which ranks below more secure forms of borrowing...
...Neither the monster national players (JPMorgan Chase, Bank of America, Wells Fargo, Citigroup) nor the regionals (PNC, M&T, et al) have had much to say about the economy’s effect on credit quality....
...The former is a near-term likelihood in China, however, and not implausible in the US as the Federal Reserve winds down quantitative tightening....
...If you owned rate-sensitive, high-risk stocks yesterday you have Unhedged’s permission to sell and take the rest of the year off (Carvana, Zillow, SoFi, et al rose 10 per cent or more)....
...The riskiest, most beat-up members of the group (KeyCorp, Comerica, Zions, Western Alliance et al) rose the most....
...That’s Scott DiMaggio, co-head of fixed income at AllianceBernstein. He was, presumably, too busy earning money to add much detail....
...That the Fed’s rate increases precipitated a banking crisis before they got inflation down to even vaguely near their target looks like a good example of what Akinci et al were arguing last year....
...More recently, the Bank of England, the Bank for International Settlement, and the Federal Reserve itself have all highlighted how Treasury bonds/futures arbitrage strategies have been staging a comeback...
...Given how volatile the data was during Covid-19, Williams et al suspended their estimates until May....
...And Federal Reserve chair Jay Powell makes much the same argument. They didn’t see that Covid had itself reduced the likelihood of a large return of labour....
...With the Federal Reserve nearing the end of its tightening cycle, institutional and retail investors are heading back into fixed income, as Madison Derbyshire and Harriet Agnew report....
...Monetary policy: Federal Reserve Bank of Philadelphia president Patrick Harker speaks at several public events today. Don’t miss the first issue of our new Central Banks newsletter tomorrow....
...Today’s top stories The US Federal Reserve announces its decision on interest rates at 2pm ET/7pm London today. Check back here for details and reaction....
...strikes, car and credit card loan delinquencies, et al)....
...The US Federal Reserve went as far as to warn that there was “significant upside risk to inflation” in its minutes published on Wednesday, even though some officials appeared more sceptical about the need...
...The questions private credit lenders are being asked are the same ones banks often face from the Federal Reserve on their risky lending activities: how rigorous is your underwriting, and will these companies...
...US jobs growth was almost twice as strong as forecast in May, an unexpected sign of labour market resilience ahead of a Federal Reserve decision on whether to hold interest rates steady or push ahead with...
...Fedspeak: Federal Reserve Bank of Philadelphia president Patrick Harker will speak on the economic outlook before the National Association for Business Economics monetary policy and outlook webinar....
...Shares in other banks considered to have some degree of asset-liability mismatch (Western Alliance, Zions et al) only saw their shares wobble a little bit yesterday....
...Producer prices in the US rose more than expected in January, reinforcing concerns about the stickiness of inflation that may prompt the Federal Reserve to keep interest rates higher for longer to cool the...
...So, you know, one of the big kind of expectations running into this year, and it already feels silly looking back on it, is that we were gonna get six rate cuts from the Federal Reserve in 2024 — without...
...Their balance sheets are regularly scrutinised by the Federal Reserve, among others, and their risk profiles are closely monitored....
...If we are right that consumer spending, despite some recent softening on the margin, is still at or above trend, that is another thing for Powell et al to fret over....
...That global macroeconomic movements this year have been in large part due to the United States Federal Reserve is so obvious that this paragraph is pointless....
...In each episode, disruptions in dollar funding markets led to an extraordinary policy response in the form of central bank swap lines, whereby the Federal Reserve channelled US dollars to key central banks...
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