Category: liquidity

Is Trouble Brewing Underneath the Bond Market?

News Analysis The U.S. treasury bond market has tumbled this year. That’s no surprise. Between the Federal Reserve’s interest rate hikes and quantitative tightening, 10-year treasury yields have increased from 1.6 percent to more than 4.0 percent year to date (bond yields have an inverse relationship with bond prices). But this doesn’t feel like a…


A Perfect Storm for a Liquidity Crisis?

Commentary Efforts to curb inflation by central banks, particularly the Federal Reserve (Fed), may well trigger a liquidity crisis in the markets. That’s the assessment of University of Bath researchers, which claims that excessive anti-inflationary policies could create a money shortage within this calendar year. Moreover, it shows that central banks can be a destabilizing…


Lower Interest Rates Unlikely to Stimulate China’s Property Market: Expert

Amid a real estate developer debt crisis, China’s central bank consecutively lowered its Loan Prime Rate (LPR) in an attempt to stimulate sales in the property market. However, experts say that the move is unlikely to turn the market around. On August 22, the Chinese central bank lowered its Loan Prime Rate (LPR) for the…


Chinese Property Developer Faces Debt Default Amid ‘Unprecedented Liquidity Pressure’

Evergrande’s debt default last year, kicked off China’s housing market slump that just continues to worsen as widespread COVID-19 curbs weaken buyer confidence and market demand. With tumbling sales, short-term debts, and a lack of offshore refinancing, Chinese property developers are facing a liquidity crisis. Skyfame Realty, a private Chinese real estate developer, had all…


Central Banks Seen Enhancing Liquidity After SWIFT Ban: Credit Suisse Strategist

NEW YORK—The banning of certain Russian banks from the SWIFT international payment system could push central banks to enhance liquidity to offset missed payments, a Credit Suisse strategist said on Sunday. Western nations announced on Saturday a harsh set of sanctions to punish Russia for its invasion of Ukraine, including blocking some banks from the…


StanChart Fined $61.5 Million for Misreporting Liquidity Position

LONDON—The Bank of England said on Monday it was fining Standard Chartered 46.55 million pounds ($61.51 million) for misreporting its liquidity position to the regulator and for failings in its controls. The Prudential Regulation Authority (PRA) said the fine related to when the regulator was concerned from late 2017 about a “heightened risk” of U.S….


Debt Ceiling Fears

Commentary Fears over a technical default have sent Treasury yields higher this week as investors and money managers reduce uncertainty from their portfolios. While the United States has never defaulted on its debts and is unlikely to anytime soon, the recent decline in bond prices and rise in Treasury yields indicates the market believes it…


Swiss Propose Liquidity Rules Costing Banks Little or Nothing Extra

ZURICH—Switzerland proposed updated rules to ensure major banks hold enough liquidity to absorb shocks, but the draft changes will cost banks little or nothing in additional capital and liquidity holdings, government documents showed on Thursday. The proposed revisions, which were sent into consultation on Thursday, aim to ensure that systemically important banks (SIBs)—which include Credit…