Monetary and credit data released by the European Central Bank (ECB), not just official communications and inflation and output projections, help markets to predict future interest rate moves. The ECB is one of the few central banks to emphasise the importance of its monetary analysis as a cross-check of its economic analysis. With the exception of the early years […]
The explosion of debt in troubled developing countries like Brazil may be a problem at some point in the future. For now, investors are stepping over one another to buy more of such bonds.
They’re so eager for a chance to lend to Brazil in particular that the nation is about to sell at least $500 million of notes maturing […]
The Italian banking crisis is the outcome of two factors. First, a deep recession that caused many borrowers to become insolvent during the last five years. Second, the mismanagement of some banks, mostly regional banks (with the exception of MPS, which is the third bank in the country), that did not follow sound practices and in some cases made […]
Much of the literature related to Federal Open Market Committee (FOMC) decisions focuses on their post-announcement effects. There is ample evidence that asset prices and volatilities only respond to “surprises” – that is, when the actual target decision differs from the market’s expectation mirroring the findings of a substantial body of work considering the effects of macroeconomic announcements.
In addition, […]
Private equity is at a crossroads. A once carefree industry, it is increasingly assailed by regulators and investors demanding lower fees, higher returns and greater financial transparency. Valuations, having risen sharply, may have peaked; the average price paid for assets by US buyout firms in 2015 was 22.4 times earnings, according to data from Bloomberg. The buyout industry had […]
The insurance industry is rarely credited with innovations we now take for granted. The idea for a fire service was brewed up in 17th century coffee houses to insure against arson, pension funds came from the desire to protect the wives of clergymen in the 18th century, and the blueprint for the modern welfare state ultimately emerged from Bismarck’s […]
Financial Technology (FinTech) has been one of the fastest growing tech sectors during the past two years. Interest in the sector has led banks, investors, regulators and policymakers alike to interact with FinTech start-ups to better understand what drives their success. This has emerged as an on-going process – the difficulty comes from the fact that similarly to the […]
It’s a familiar idea that venture capitalists, or VCs, are the “money of invention” and fund firms with high growth potential, helping bring their products to market. However, entrepreneurs have many options when considering funding. There are corporate venture capitalists (CVC), which typically work within a larger corporate structure and seek to acquire innovative startups that would blend well […]
There have been a variety of systemically important banking issues making the headlines since the global recession of 2008, but the challenge to mitigating credit risk during settlement seems to be a constant frontrunner. This article discusses the importance of effective liquidity management, particularly from the sphere of timely payment settlement via financial market utilities (FMUs), defined as “multilateral systems that […]
Institutional Investor’s All-American ranking is the Oscars of sell-side securities analysis. Sell-side analysts work for investment banks or independent research firms to gather, interpret, and disseminate knowledge about a particular industry. Unlike buy-side analysts, who make actual investment decisions, sell-side analysts offer their audience of institutional investors – such as chief investment officers and portfolio managers of money management […]