Ten Seconds Into The Future. Investment Outlook 2H 2015
Monday, 25 May 2015 | 8:09 am
Outlook 2H 2015 Behind every forecast is a melee of competing ideas and arguments. Behind the veil of confidence is a dialectical process of self-questioning and reinforcement, and often, self-doubt. Behind every investment strategist is a risk manager acting as goalkeeper, and a trader dodging and weaving around short term volatility, avoiding the thousand
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FX Rate Fixing. Banks Fined. A Clarification.
Friday, 22 May 2015 | 1:11 am
The rights and obligations of principal and agent need to be properly defined, particularly in complex business like banking and finance. Five banks have recently been fined $5.5 billion over a rate manipulation scheme that has seen them not act in their clients’ best interest. A bank should be clear about whether it trades as
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China's QE Lite II. Jiangsu Successfully Issues 52 billion RMB of Muni Bonds
Thursday, 21 May 2015 | 12:37 am
On Monday, 18 May, Jiangsu province successfully sold 52 billion RMB of municipal bonds. Recently, the Chinese government has accelerated a municipal bond program that effectively is a debt swap for some 1.7 trillion RMB of existing local government debt. Cost of debt for the local governments is expected to fall by some 250-300
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China's QE Lite. PSL, MLF, SLF a.k.a LTRO, MRO
Friday, 15 May 2015 | 12:33 am
China is initiating QE lite mimicking the ECB’s LTRO programs. The objectives are clearly to lower borrowing costs for local governments, and to establish a liquid municipal bond market as part of a reorganization of the funding mechanism for local governments which until now had used opaque, off balance sheet, so-called Local Government Funding Vehicles
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Why Did German Bunds Selloff and What Opportunities Are There in European Sovereign Bonds
Thursday, 14 May 2015 | 7:09 am
Why did German bunds selloff so violently? When the ECB announced QE, traders attempted to front run the program. The program would buy bonds according to the capital subscription of the national central banks to the ECB. On that count, bunds would see an 18% allocation of the budget, France 14%, Italy 12% and Spain
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