Edward Altman says the benign credit cycle is in “extra innings,” but the metaphorical relief pitchers — central bankers — are running out of gas. Though most indicators point towards the end of the benign cycle, Altman cannot predict when the stress cycle will begin.
Interest rates are nearing a lower bound, David Schawel, CFA, tells Will Ortel during a recent Take 15 interview. “Most likely we’re not going to be in a 30-year bull market for interest rates falling again,” he said. So what does this mean for fixed-income investors?
What's the cause of the current global economic malaise? Lord Adair Turner believes it all comes down to debt. His proposed solution? Helicopter money, or what he prefers to call "overt monetary finance of increased fiscal expenditure."
In my previous life, as a reporter for the Financial Times, I did a stint covering philanthropy. I heard a lot about social entrepreneurship, philanthrocapitalism, and the ways that some philanthropists and nonprofit organizations were tackling some of the world's toughest, seemingly intractable, social ills.
As the saying goes, it’s tough to make predictions, especially about the future. But it’s manifestly worth the effort because catching big trends is how fortunes are made and catastrophic losses are avoided.
During the global financial crisis, excessive debt was the principal disease. It also turned out to be the principal cure. Whether it was called quantitative easing (QE) or something else, it all meant the same thing: increased debt — both in absolute terms and relative to GDP.
Pierre Wunsch, governor of the Belgian central bank, says domestic banks might be required to set aside extra capital against home loans. Lenders will be vulnerable if hit with a credit crunch because "net margins in the mortgage sector are too low," Wunsch says. MLex (subscription required) (18 Feb.)
The Securities and Exchange Commission has proposed allowing a wider range of companies to use the "test-the-waters" process, which lets prospective stock issuers discuss offerings with likely investors before bringing a deal to market. The process bars companies with more than $1 billion in yearly revenue. Pensions & Investments (free access for SmartBrief readers) (19 Feb.)
The list of companies planning to leave the UK is lengthening as Brexit approaches but no divorce agreement is in sight. The departure of Honda will eliminate 3,500 jobs, and the Netherlands says it has helped 42 companies relocate from the UK. Politico (19 Feb.)
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.