Macaskill on Markets
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Wall Street’s Trump party could end in a hangover
US banks will get a trading and dealmaking boost from Trump’s re-election, but rising Treasury yields could pose challenges. -
Sideways: Timing is everything at Deutsche Bank
Former credit trader Shikha Gupta discovers that a verbal contract isn’t worth the paper it is written on. -
Macaskill on markets: In the year of equities, derivatives are key
It is turning out to be an equities year for the big investment banks, as fixed income revenues fall or stall and fees from dealmaking recover slowly.
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A US climate bill filled with green credits will create business for banks and provide relief from the backlash against ESG products.
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West Virginia state treasurer Riley Moore has opened another front in a campaign by Republican officials in the US against banks that promote ESG policies.
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HSBC Asset Management’s head of responsible investing has had it up to here with consultants and regulators lecturing him on climate change risk.
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Manfred Knof starts early next year, after Martin Zielke is ousted by Cerberus. He joins recently arrived chairman Hans-Jörg Vetter.
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The chairman of UBS seems determined to force a wave of European banking consolidation. A merger of his firm with Credit Suisse may not be possible, but other deals are likely.
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The trend towards social debt issuance at the expense of green bonds poses a conundrum for firms looking to appoint credible leaders for a push into sustainable financing.
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Environmental, social and governance (ESG) investing is moving beyond a compliance-focused cancel culture, giving US banks an undeserved chance to win market share from European firms.
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Unprecedented oil volatility and gold at a record high may tempt banks back into commodity trading, but conflicts of interest with ESG goals could quickly emerge.
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Goldman Sachs chief executive David Solomon’s decision to back a rival to Democratic politician Alexandria Ocasio-Cortez may come back to haunt him.
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A complex investment in Wirecard by Deutsche Bank veterans now working at SoftBank has effectively compounded the eventual embarrassment for Germany Inc from the failure of the online payments firm.
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BlackRock’s contract with the Federal Reserve to support the corporate bond market leaves the world’s biggest asset manager with no room for governance error.
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Investors looking to profit from – and hedge against – credit deterioration due to Covid-19 will need to pick their spots when fighting the Federal Reserve.
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Central bank corporate credit support is helping to cut debt costs for borrowers such as Netflix. A government put option won’t cure all the problems looming in the credit markets, however.
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Bank balance sheets are ballooning and regulators are just fine with that.
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Private lending vehicles that are structured to maximize fees are looking dangerously fragile, and mismarking of asset values could spark legal disputes.
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The Federal Reserve’s expanded bond buying commitment underscores that the safest hedge at the moment is a security that can be sold to a government.
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Recent years have been challenging for market doomsayers, with big equity markets steadily rising and volatility dampened across asset classes. The spread of the coronavirus and understandable fear of its impact has given a boost to professional controversialists.
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Freshly empowered European bank chairmen are making perplexing lurches as they search for new chief executives. A random CEO generator might help.