Banks

Central Banks To Add Liquidity Worth 0.66% Of Global GDP On Average Every Month In 2021

Earlier we discussed why Morgan Stanley’s chief equity strategist Michael Wilson voiced concerns about the continuation of the “overcooked” equity rally, expecting a drawdown into year end for the simple reason that “both fiscal and now monetary policy have become reactive rather than proactive. For markets, that becomes the itch that needs to be scratched–i.e….

China’s Financial Distress Floods Shadow Banks As Trust Giant Scrambles For Liquidity

The wave of financial distress flooding China’s corporate sector, which has seen a furious selloff in bonds following the unexpected default of several state-owned enterprises, is spilling over into a key financing conduit used by China’s giant shadow banking sector — the trust industry. As Caixin reports, Huaxin Trust Co. one of 68 companies licensed…

Why Big Banks Are Bullish on Bitcoin Now!

By Neenah Payne The following articles show the sea change happening now as big banks hop on the bitcoin bandwagon! The Forbes October 26 article Why America’s Biggest Bank Is Suddenly Very Bullish On Bitcoin says: JP Morgan, the largest U.S. bank by assets, has this year softened its previously harsh tone on bitcoin. The…

Foreign Central Banks Buy TSYs For 2nd Month, China Holdings Near 4-Year Lows

Some relatively positive news in the latest TIC data shows that the last 12 months purchases of Treasuries by foreign central banks surged by $59 billion to $221.6 billion – its highest since Jan 2019… Under the hood, foreigners Total Long-Term Treasury Purchases: $22.5BN, sharp reversal from $33BN in sales in August Purchases of Agencies…

How COVID Forbearance Gave Banks A Three Trillion Dollar Boost

By Nick Dunbar of Risky Finance If there was one thing that regulators were sure about at the start of the pandemic, it was that it would not become a bank story. Crisis yes, maybe even a touch of market turmoil for a few weeks in March, but never something that would embroil the world’s…