Equities
Custody initiative of the year: Citi
The US financial group used its global presence and technological edge in 2018 to deepen existing relations and obtain new mandates
US equity prices affect consumer and business confidence, researcher finds
Results highlight risks to macroeconomy of recent equity slump
Powell sends cautious message to markets
Bernanke says he and Yellen “very lucky” to have served under presidents who respected Fed independence; Powell pledges not to step down
The ‘great fintech wall of China’?
Deploying fintech wrappers could help to solve part of the People’s Bank of China’s capital control dilemma; trials possible in Greater Bay Area
Kuroda defends BoJ’s asset purchases
Central bank could face problems when it unloads ETFs, former senior official warns
PBoC’s policy communication could improve - IMF paper
Central bank’s communications should be more timely and accessible, researchers say
Volatility in equities may soon influence Fed policy, says Moody’s economist
US equity sell-off may be due to Fed policy, says John Lonski
RBI prepared to step in as non-banks suffer liquidity shortage
Government and regulators stress readiness to act amid non-bank liquidity pressures
Reserve management practices are splintering
Traditional approaches to reserves management are breaking down, writes Jennifer Johnson-Calari
European banking and capital markets union would foster growth – Draghi
More integrated financial markets can contribute to higher productivity growth, says ECB president
Passive investing boosts some risks and cuts others – Fed paper
Authors assess four ways the surge in passive investing might impact stability
Capital markets union a la Willie Sutton
When Sutton was asked why he robbed banks, he said: “That’s where the money is.” Europe has yet to address where the capital markets union funding should come from, but there is a solution
Turkish lira reaches fresh low as crisis impacts emerging markets
Central bank announces lower reserve requirements in bid to increase liquidity
Equities pushing US wealth inequality - Minneapolis Fed paper
Wealth inequality boosted by record-high stocks and slower growth in house prices, paper finds
Researcher models business cycle using ‘animal spirits’
San Francisco Fed paper incorporates ‘equity sentiment shock’ into model
High reserves and low yields force central banks to focus on returns – survey
Equities become more important in reserve portfolios, accounting for 90% of returns in 2017
Central banks still value diversification, say reserve managers
Rise in US yields does not outweigh the benefits of forex diversification, say delegates attending Nalm Americas
China opens onshore market to foreign investors
MSCI adds Chinese shares to its emerging markets index for the first time
ZLB increases equities-oil correlation – St Louis Fed research
The assets were uncorrelated until late 2008, when Fed took federal funds rate to zero
Official reserve management in the 21st century
A lack of operational clarity and reluctance to view reserve portfolios holistically have prevented optimal, rules-based approaches to reserve management becoming commonplace. BlackRock‘s Terrence Keeley, Stuart Jarvis and Michael Palframan explain how…
Norway’s pension fund suffers volatile first quarter
Fund loses $21 billion amid market gyrations but real estate proves its worth
Short-selling behaviour can cause financial instability – Sarb report
Short-selling of Capitec Bank stock could have caused financial instability, Sarb says, but quick action stemmed crisis
SNB loses $6.9 billion in Q1
Higher interest rates reduced the value of sovereign bonds
Rising rates seen as main risk by reserve managers
High asset prices and the halting and withdrawal of bond-buying programmes pose challenges