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stress tests

Markets 7th April 2015

European markets reopen

The Corner | April 7, 2015 | European markets reopen this morning, with three areas of specific interest likely to dominate events on trading floors. The first, will be the continued wrangling between Greece and its creditors, with hopes for a deal becoming increasingly slim as the acrimony between the various parties seemingly increased over the weekend. On Wall Street, quarterly results presentations will commence, while traders will also be closely monitoring a swathe of data which may offer an insight as to the future direction of the Fed’s monetary policy.

Ice Age the movie

Markets 6th April 2015

Negative rates: Ice age for savers

Asoka Wöhrmann (Deutsche AWM) | Negative interest rates are new economic territory. However, as yet, there is no sign of a major cash exodus to avoid sub-zero yields. 

Mobile payments

Markets 5th April 2015

Faster payments: The need to upgrade current payment infrastructures

BBVA Research | April 6, 2015 | Nowadays it is normal to receive immediately an e-mail sent from the other side of the world. Yet it still takes more than two days to transfer funds, even without being a cross-border transaction. The digital age demands an acceleration of payment processes. 

Interest rates and demographic changes

Markets 3rd April 2015

The natural rate of interest – Past and prospective

WASHINGTON | By Michael Gavin at Barclays | In a recently published chapter of the Equity Gilt Study, we presented evidence that trends in population dynamics has been an important driver of the ‘global savings glut’ that has depressed interest rates and boosted asset prices around the world during the past 30 years. We also noted that the world now faces a demographic inflection point, and that demographic support for saving, and by extension asset prices, should fade materially in the decades to come. 

Investors

Markets 31st March 2015

Bankinter: Spain’s Ibex to reach 12,878 points (+12%) in 2015

The Corner | March 30, 2015 | While much of the attention is focused on bonds, it should also be noted that stocks and real estate market are also worth more. How much? Bankinter analysts forecast that Spain’s Ibex will reach 12,878 points (potential + 12%) in 2015; EuroStoxx50, 4,338 (+ 18%); S&P 500, 2,333 (+ 10%). The Japanese Nikkei remains the least attractive option at 20.305 (+ 4%).

Basel III monitoring exercise in 4 charts

Markets 31st March 2015

EBA on Basel III Monitoring Exercise

BBVA Reasearch | March 31, 2015 | The EBA (at European level) and the BCBS (at global level) both published their 7th Basel III Monitoring Report on March 3rd, using data as of June 2014. Overall, the trend towards enhancing the resilience of banks’ balance sheets is underpinned. Indeed, there has been an improvement in all the three pillars of the new prudential framework: capital, leverage and liquidity. The EBA estimates a capital shortfall of EUR2.8bn for a 7% CET1 of Group 1 banks, which means a decrease of 75% compared with the previous publication. 

TLAC proposed calendar in 2015

Markets 30th March 2015

TLAC next steps: Quantitative Impact Study

BBVA Research | March 30, 2015 | The TLAC’s public consultation period ended on 2nd February. Now is the time for carrying out a comprehensive Quantitative Impact Study (QIS) to define the optimal calibration of the TLAC. The FSB will assess the potential impacts on financial system, financial stability and the real economy. 

IOSCO Secretary General David Wright

Markets 26th March 2015

Markets supervisor: With its capital markets union Brussels is behind the curve

MADRID | March 26, 2015 | By Ana Fuentes | David Wright is charged with overseeing international securities regulators in his role as Secretary General for IOSCO. In an exclusive interview with The Corner, he speaks of the need for greater urgency in integrating global capital markets. He also notes that a failure to understand the changes taking place in global financial markets could be hindering economic growth.