January 15, 2021
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SIFMA SmartBrief
News on the capital markets
Morning Bell
Goldman Sachs expects the 10-year Treasury yield to reach 1.5%, rather than 1.3%, by year-end, citing "revived reflationary themes." Policy under the Biden administration "should translate into a greater fiscal impulse than under our previous divided government baseline," Goldman strategists say.
Full Story: Bloomberg (1/14) 
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Optimizing Your Remote Business Processes
The global pandemic has shifted much of the world's workforce into a remote setting, but the need to collaborate within - and between - teams remains. Cloud content tools have become a significant solution, but which features and benefits are most needed at this time? This infographic provides insight into what makes a strong collaboration tool
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Happening Today
Ten key regulatory challenges for 2021
In 2021, economic and policy disruption will push regulators to reassess financial service companies, from the management of enterprise and compliance risks to that of resiliency, ESG, and financial crime. KPMG's new insights discuss challenges and next steps. Download the thought leadership >
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Industry News
JPMorgan Chase has reported $12.1 billion in fourth-quarter net income, or $3.79 in earnings per share, up from $2.57 per share in Q4 of 2019 and well past analysts' expectation of $2.62 per share. The jump is attributed to strength in trading and investment banking.
Full Story: CNBC (1/15),  Reuters (1/15) 
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Major clearinghouses including LCH and CME Group are talking with clients about whether to shift trillions of dollars in interest-rate derivatives out of Libor and into alternative benchmarks weeks before Libor's official end. "We know Libor cessation is a challenge for everyone," says Phil Whitehurst, head of service development for rates at LCH's SwapClear. Libor exit strategies "do involve work for all involved, but we think they represent the best possible outcomes," Whitehurst says.
Full Story: Bloomberg (1/14) 
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An average of 30 million equity options contracts traded daily on exchanges in 2020, up more than 50% compared with 2019, and that figure has risen past 40 million in recent weeks, according to Options Clearing. The flood of trading shows no signs of abating as technology makes it easier for retail investors to purchase options.
Full Story: The Economist (tiered subscription model) (1/16) 
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Insights for lending leaders
Insights for lending leaders based on worldwide research pre- and post-pandemic. Learn more
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Washington Roundup
President-elect Joe Biden says he will ask Congress to act swiftly to provide $1.9 trillion in immediate relief to help the economy recover from the coronavirus pandemic. The package includes aid to states and cities, additional unemployment benefits, larger direct payments to Americans and a minimum wage increase.
Full Story: Bloomberg (1/14),  CNBC (1/14),  The New York Times (1/15),  Reuters (1/15) 
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Federal Reserve Chair Jerome Powell has indicated the central bank has no intention of tightening monetary policy or paring bond buying anytime soon and is committed until the job is done. Powell said that now is "not the time" to think about ending central bank support for the economy, given that inflation and employment are tracking below target. "The economy is far from our goals," he said.
Full Story: Reuters (1/14),  MarketWatch (tiered subscription model) (1/15),  Financial Times (subscription required) (1/14) 
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SIFMA has revised model disclosure documents, with a focus on the Municipal Securities Rulemaking Board's Rule G-17 on fair dealing, to assist dealers with complexities in the transition away from Libor. "The latest versions include clearer drafter's notes to make it easier to utilize the model documents, address the transition away from Libor with [Alternative Reference Rates Committee] fallback language, and add the disclosure of additional risks not previously included in the model documents," says Bernard Canepa, SIFMA vice president and assistant general counsel.
Full Story: The Bond Buyer (subscription required) (1/14) 
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The Office of the Comptroller of the Currency has formalized a rule that prohibits banks from refusing to offer loans or other services to firms in potentially controversial industries. The banking industry largely opposes the rule, finalized shortly before Brian Brooks' departure as acting comptroller of the currency.
Full Story: The Wall Street Journal (1/14),  Law360 (subscription required) (1/14),  CNBC (1/14),  American Banker online (subscription required) (1/14) 
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Global Update
The UK faces a struggle to secure full access to the EU, despite ongoing discussions, City of London leaders have told lawmakers. They cite the UK's indication it will diverge from EU financial rules, while the EU wants assurances it will not.
Full Story: Reuters (1/14) 
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Asset Management Report
Investors allocated a record $762.9 billion to exchange-traded funds last year, taking assets in the sector to a record $8 trillion worldwide, according to data from ETFGI.
Full Story: Financial Times (subscription required) (1/14),  Morningstar (1/13) 
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Wealth Management Report
Citi Global Wealth, a wealth-management arm that combines Citigroup's private bank with personal wealth-management services, serves a wide range of clients, from the ultrawealthy to those of moderate affluence.
Full Story: American Banker online (subscription required) (1/14) 
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Data of the Day
Unemployment claims rose sharply to 965,000 last week, the highest figure since August. The increase is attributed to ongoing fallout from the coronavirus crisis.
Full Story: Forbes (tiered subscription model) (1/14),  ABC News/The Associated Press (1/14) 
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SIFMA News
Join SIFMA for our Diversity and Inclusion Webinar Series. Recruiting diverse talent can be sustained only by an inclusive culture that supports diverse employees' professional growth and sense of belonging. In our third D&I webinar, "Culture of Belonging -- How Inclusion Improves Employee Retention." which will be Feb. 10, hear from some of SIFMA's member firms as they discuss the importance of building inclusive teams and the effective programs they have implemented to support their employees beyond hiring and promotion practices. Registration is complimentary for SIFMA members and industry regulators. Sign up today!
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SIFMA's membership is diverse, from the largest global financial players to the smallest independent firms providing access to the global capital markets. Full membership is open to broker-dealers, investment banks and asset managers. Associate membership is available to key industry partners, including law, technology and consulting firms, rating agencies, trading and analytic platforms and clearing and settlement providers. Now more than ever, your firm needs to be informed on all of the regulatory, operational and industry environmental changes occurring today. Contact the Office of Member Engagement to learn about the benefits of membership.
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LEARN MORE ABOUT SIFMA:
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SIFMA Video Resources
Fostering a Diverse & Inclusive Financial Industry
In this series, Fostering a Diverse & Inclusive Financial Industry, SIFMA teams up with business executives, human resource professionals, diversity practitioners, industry advocates and more to explore how we can promote a diverse and inclusive financial industry. Learn more.
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Editor's Note
SmartBrief will not publish Monday
In observance of Martin Luther King Jr. Day in the US, SmartBrief will not publish Monday. Publication will resume Tuesday.
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philanthropist, advocate for women and girls
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