Central bankers will be unable to head off another crisis in financial markets because they have exhausted the twin policy responses of quantitative easing and interest-rate reduction, says Claudio Borio, head of the Monetary and Economic Department at the Bank for International Settlements. Fallout is inevitable from turmoil in emerging markets, Borio says, and public anger about globalization has made a response difficult.
Outlook 2018: What can investors expect? With a new Federal Reserve chairman in office, a Republican Congress at the helm and the future of free trade agreements and healthcare up in the air, what can investors expect in 2018? Nomura Chief US Economist takes a look at some of the uncertainties around US policy that could impact markets, and offers an outlook on where inflation and interest rates are headed in 2018.
Entities including government agencies, global institutions, banks and municipalities have issued more than $9 billion in debt tied to the Secured Overnight Financing Rate during the past two months, indicating increased adoption since the Libor alternative launched nearly six months ago. However, market participants say SOFR has progress to make, and concerns have been raised about volatility.
The Commodity Futures Trading Commission's three-year exemption from registration as a derivatives clearing organization given to Shanghai Clearing House could prompt Bank of America Merrill Lynch to reappear in the Chinese market for interest-rate swaps.
Dell Technologies is again considering an initial public offering, sources say. The company, which decided to forgo an IPO earlier this year, is changing its approach after a $21.7 billion offer to buy back tracking stock ran into opposition from activist investor Carl Icahn, Canyon Capital Advisors and Elliott Management.
Buyer Beware: Bank Loans Investors have rushed into bank loans, hoping their adjustable coupons will protect them against rising rates. With credit assets looking expensive and the US in the late states of the credit cycle, we think now is a bad time to bet big on bank loans.
A drop in the basis between yen interest-rate swaps cleared at LCH and at Japan Securities Clearing to 4.13 basis points from 7.63 basis points is attributed to a Sept. 4 speech by Commodity Futures Trading Commission Chairman J. Christopher Giancarlo. Giancarlo indicated US clients would be allowed to clear swaps at non-US central counterparties that have "comparable, comprehensive supervision and regulation."
There's no deadline for completion of the Securities and Exchange Commission's proposed rule governing investment advice, Chairman Jay Clayton says. "It's not this month, probably not next month," he says of Regulation Best Interest.
Premier Li Keqiang says China will cut nontariff barriers to trade faced by foreign firms in response to US tariffs on an additional $200 billion in Chinese goods. His comments come as Asian manufacturers shift production from China amid fears US President Donald Trump will levy duties on a further $267 billion in Chinese imports.
The Securities and Exchange Commission is considering changes to accredited-investor limits that could let more small investors take a stake in tech startups. However, a study by The Wall Street Journal shows the number of US households invested in private companies is already 10 times what it was when the SEC adjusted accredited-investor rules in the 1980s.
Rep. Tom Emmer, R-Minn., co-chairman of the Congressional Blockchain Caucus, says he will introduce three bills that call on the US to "prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead on innovation and further growth." The bills urge regulatory clarity and government support for the blockchain industry.
SIFMA's Annual Meeting gathers the most influential voices shaping today's capital markets for candid one-on-one conversations, expert panel discussions and eight in-depth breakout sessions. View the full program and register today to join us Oct. 1-2 at the Mandarin Oriental, Washington D.C.
US capital markets are where investors, small and large, put capital to work to drive innovation, economic growth and job creation. Our markets have long funded the best ideas and enterprises, enabling businesses to grow, governments to invest in infrastructure, and individuals to save for retirement and education. While the US already had an extensive financial services' regulatory structure built up over a century, post-crisis regulations significantly added to the number of regulations. In this market snapshot, we review key market developments, statistics and the industry's commitment to smart regulation.