Smaller banks that have adopted new electronic trading systems look to be taking market share from larger banks in the FX market, traditionally one of the biggest providers of investment banking revenues.
South Korea’s financial regulator is planning to investigate local securities firms that sold bonds from China Energy Reserve and Chemicals Group amid growing fears that the issuer, which defaulted in May, is unlikely to pay back Korean investors.
Investors have turned their most bearish on global growth since 2008, with the buyside accumulating cash in what it sees as a late cycle moment for the world economy, according to Bank of America Merrill Lynch’s October Fund Manager Survey.
The sole junk bond issued by Tesla is down sharply after the US Securities and Exchange Commission accused its Chief Executive Elon Musk of fraud and sought to remove him from his role in charge of the electric car company.
Revenues from transaction banking jumped 7% to almost US$15bn in the first half of this year to the highest for at least eight years, showing why investment banks are increasing investment in vanilla transaction services such as trade finance and cash management.
For 20 years, the International Monetary Fund and World Bank preached the virtues of local bond markets.
Interdealer broker TP ICAP became the latest firm to support the newly created secured overnight financing rate (SOFR) by launching two distinct and differentiated data feeds for derivatives linked to the benchmark.