As we enter the final week of March, global financial markets are gearing up for another potential turmoil. Worries about banks have dominated sentiment in the U.S. and Europe this month, complicating efforts by the U.S. and other Fed officials to curb inflation. In the Sydney foreign exchange market on the morning of the 27th, … Read more
A handful of regional banks that, just a few weeks ago, were small players in the giant U.S. banking system, are now at the epicenter of a crisis that has rocked America. The turmoil at regional banks has also involved billionaire investor Warren Buffett and JPMorgan Chase & Co. CEO Jamie Dimon. Mr Warren Buffett … Read more
Credit Suisse Group AG’s one-year bond default guarantee fee has approached 1,000 basis points (bp = 0.01%). This usually indicates a serious investor concern. A one-year credit default swap (CDS) backing Credit Suisse bonds was quoted at 835.9 basis points (bp = 0.01%) at the close of trading on Tuesday, according to CMAQ data. Other … Read more
swiss bankCredit Suisse Group AG said on Thursday it would adopt a new plan to remedy “substantial weaknesses” in its financial reporting and control procedures over the past two years. The bank was reviewing its financial reports after a complaint from the U.S. Securities and Exchange Commission (SEC) last week. In its annual report released … Read more
The volatility in short-term U.S. short-term interest rates on Thursday was unlike anything seen in the past 40 years, including during the 2008 financial crisis and the 9/11 attacks. Two-year U.S. Treasury yields fell about 61 basis points (bp, 1 bp = 0.01%) on the day. It was the biggest one-day decline since the early … Read more
![[Column]Revival of the Fed’s reversal scenario due to bank failures – Authors](https://i0.wp.com/assets.bwbx.io/images/users/iqjWHBFdfxIU/iiIYPWN07nFM/v1/1200x800.jpg?fit=%2C&ssl=1 "[Column]Revival of the Fed’s reversal scenario due to bank failures – Authors")
The world financial system is in turmoil. The US Silicon Valley Bank (SVB) has gone bankrupt. Washington Mutual was forced to file for bankruptcy in the wake of the 2008 collapse of Lehman Brothers, making it the largest failure of a U.S. financial institution since then. New York’s Signature Bank was also forced to shut … Read more
Bank runs, increased Fed resolve on inflation, credit risk, and recession risk. Investors have absorbed many shocks over the past few days. It may be impossible to shake them all off at once. The problem is that when one threat subsides, another emerges. The economy is either overheating or at risk of worsening from financial … Read more
Young mothers push strollers among citizens resting in the shade on a hot summer day in a park in central Buenos Aires, the capital of Argentina. This is a common sight in this middle-class region, but there was one difference. All these mothers speak Russian. Thousands of Russians have flocked to Argentina since Russian President … Read more
riceGoldman Sachs Group Inc. Chief Executive David Solomon said the odds of a soft landing for the U.S. economy were “significantly higher” than they were six months ago. “The odds of a soft landing for the U.S. economy in 2023-24 are more likely than I thought six months ago,” Solomon said at a conference hosted … Read more
Strategists at JPMorgan Chase & Co. see the risk of a “Volmageddon 2.0” that could affect the market as a result of increased trading in ultra-short-term options with less than 24 hours to maturity. He again elaborated on his claim that it would increase This claim is controversial. A 5% drop in the S&P 500 … Read more