Central banks
Euro debt crisis prompts questions over collateral
European financial markets have been turned upside down by the sovereign debt crisis, with eurozone government bonds no longer regarded as completely risk-free. As a result, dealers are more wary of the correlation inherent in collateral denominated in…
Asia Risk 15: Philip Combes, New Zealand Treasury
The New Zealand Debt Management Office (NZDMO) has managed both assets and liabilities on behalf of the New Zealand government. Here, deputy secretary to the New Zealand Treasury and head of the NZDMO, Philip Combes, explains how a prudent approach to…
Bear bailout vehicle turns first paper profit
Federal Reserve balance sheet data shows Bear Stearns’ assets held in Maiden Lane vehicle made a paper profit for first time since its inception
ECB closes in on inferior collateral with new haircut scheme
European Central Bank’s new discount schedule increases haircuts levied on troublesome collateral, such as asset-backed securities; analysts expect move to discourage pledging of risky assets
ECB may extend full allocation tenders into 2011
Any withdrawal of liquidity by the ECB at year-end would cause major uncertainty, say bankers
Cross-border collateral may alleviate dollar funding strains: Emeap
Executives’ Meeting of East Asia Pacific Central Banks says crisis revealed shortcomings in regional money markets; swaps deals, cross-border collateral could alleviate some problems
Banks scramble to offer renminbi products as Hong Kong gains offshore interbank status
Creation of offshore renminbi interbank market in Hong Kong is seen as boon for new investor products
FOMC faces tricky task in avoiding another bubble
FOMC officials’ pessimism about conditions highlights challenge central bank faces in fulfilling its dual mandate
Eurozone has two years to agree fiscal union – DB Advisors
The viability of the Eurozone project continues to weigh on fixed income market, says chief investment officer of DB Advisors.
ECB pins hope on new rescue measures to save Eurozone
The commencement of the ECB’s government bond purchase programme and the announcement of an EU loan facility for struggling peripheral countries resulted in an immediate tightening of spreads. Yet uncertainty remains as to whether beneficiaries will be…
Heightened event risk as ECB excess liquidity shrinks
Dealers eagerly watch European Central Bank tenders as new maintenance period is set to begin
ING warns of ‘dramatic divergence’ in interest rates if euro fails
Widely diverging interest rates could occur if EMU is dissolved, warns Dutch insurer
Governors gloomy on outlook for pan-African currency
South African, Nigerian and Ghanaian central bank governors say path to regional and continent-wide single currency littered with obstacles; single currency will not correct underlying problems
Netherlands’ Wellink survives resignation calls
Calls for Netherlands Bank governor to quit followed damning report into the central bank’s handling of failure of DSB
We must accept central banks’ limitations, says Fed’s Plosser
Philadelphia Federal Reserve president warns mistaken view of central banks as omnipotent risks damaging their credibility
Pick and choose from social media tools: BIS’s Laurmaa
Bank for International Settlements’ head of web publishing Timo Laurmaa says Twitter more beneficial to profit-making companies; short releases help when reaching out to wider-than-usual audience
Finger-pointing masks officials’ failures, says Sarb’s Marcus
South African Reserve Bank governor Gill Marcus says knee-jerk reforms ignore failure of policymakers to raise standards before crisis; sober, measured approach to reform only credible way forward
BIS steps up pressure to end financial sector support
Emergency measures brought in during the crisis are now doing more harm than good, annual report says
Central banks’ holdings of US agency debt rise on dollar demand
Fed data show official-sector holdings of US agency securities rose for a 12th straight week; auction for seven-year US Treasury bills displayed growing demand for dollar denominated assets
Market prepares for rising RMB
Swap rates and NDFs show traders expect the Chinese currency to rise after the weekend saw the end of its dollar peg
Swap lines better than foreign reserves during crises, research finds
Reciprocal currency swap agreements between central banks bolstered market stability in Korea during the crisis in 2007 and 2008
Eurozone has two years to agree fiscal union, says DB Advisors
The viability of the Eurozone project continues to weigh on fixed income market, says chief investment officer of DB Advisors.
Struggling sovereigns could look to retail bond solution
Spain and Portugal should follow Italy’s lead by tapping retail investors, says Barclays economist.