financial sector

Markets sense oil country ratings still have further to fall

Financial markets are betting that Wednesday's mass downgrade of oil producing countries by Standard and Poor's won't be the last and that Saudi Arabia may fall to just above junk status after oil-producers failed to agree on cuts to boost prices. S&P delivered a double-notch downgrade to Saudi Arabia, stripped Bahrain of its 'investment grade' [...]

By |February 23rd, 2016|Categories: News|Tags: , , , , , , , , |

Why Sovereign Wealth Funds are Selling Equities

The world's capital markets have been roiled this year by rumors that sovereign wealth funds of oil-dependent states are selling foreign assets to redirect money home to plug budget deficits and repatriate captial. Some institutions, such as Malaysia's large pension funds and the Saudi Arabian Monetary Agency, the kindom's central bank, are indeed answering calls [...]

By |February 23rd, 2016|Categories: News|Tags: , , , |

Climate risks could wreak havoc on financial markets, EU watchdog warns

The EUÍs financial watchdog has called for governments to consider imposing asset disclosures on industry and stress tests on banks as a guard against the economic crisis that could be caused by an emergency switchover to clean energy. The European Systemic Risk Board _ set up by the EU in the wake of the 2008 [...]

By |February 16th, 2016|Categories: News|Tags: , , , , |

The Crowded Trade in Bank Stocks Among Oil-Rich Countries

When it comes to the selloff in bank stocks, thereÍs plenty to blame: credit concern, earnings, negative interest rates, and souring sentiment. Another theory: Burned by the rout in crude, oil-rich nations have been pressured to dump their shares. What do such funds, which make up about 5 percent to 10 percent of global assets, [...]

By |February 16th, 2016|Categories: News|Tags: , , , |

Sovereign funds’ selling could hit $700 bln of European stocks

Up to $700 billion of European stocks, including major banks, could be in the firing line as the slump in oil prompts some producer countries' sovereign wealth funds to offload investments. Fund managers and investors say recent sharp selloffs in global markets and especially European stocks may have been exacerbated by national rainy-day funds selling [...]

By |February 16th, 2016|Categories: News|Tags: , , |

Sovereign Bond Yields Plunge As Panic-Fueled Rout Grips Global Stock Markets

Persistent concerns over the state of the Chinese economy and uncertainties over the pace of the U.S. Federal Reserve’s monetary policy tightening measures sent investors across the world scrambling toward safe-haven assets Tuesday. A widespread sell-off in global stock markets was accompanied by a concomitant surge in prices of sovereign bonds, causing — for the [...]

By |February 10th, 2016|Categories: News|Tags: , , , |

Government bond yields send recession signal

If major government bond markets are right, the global economy is sliding towards recession and central bank easing policies will pull borrowing rates deeper into negative territory. In Germany, the average yield on all government debt is now negative, while Japan is on course to become the first major bond market with a 10 year [...]

By |February 10th, 2016|Categories: News|Tags: , , , , , , , |

Default risk in energy debt seen as higher than Great Recession

Markets are pricing in a higher default risk for the energy sector than they did at the peak of the Great Recession, according to data from Schwab Center for Financial Research and Barclays. As continued concerns about oil’s global supply glut pushed crude futures below $27 a barrel, sparking a global stock selloff, energy spreads [...]

By |January 27th, 2016|Categories: News|Tags: , , , , |

IMF Trims Global Outlook as Brazil Slump, Oil Weigh on Expansion

The International Monetary Fund cut its world growth outlook, as the commodities slump and political gridlock push Brazil deeper into recession, plunging oil prices hobble Mideast crude producers, and the rising dollar curbs U.S. prospects. The global economy will expand 3.4 percent this year, down from a projected 3.6 percent in October, the IMF said [...]

By |January 19th, 2016|Categories: News|Tags: , , , , |

Forget Basel IV: Bundesbank Says Beware of Banks’ Sovereign Risk

Banks should brace for higher capital requirements on their sovereign-debt holdings as regulators prepare to close the chapter on their response to the financial crisis, said Andreas Dombret, the Bundesbank’s board member responsible for bank supervision. Removing regulatory incentives that encourage banks to gorge on state debt will be the last sticking point after the [...]

By |January 19th, 2016|Categories: News|Tags: , , |