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Tag Archives: Nomura

From TIC’s Big March Number Right To Powell’s Future Rate Cut(s)

Perhaps it shouldn’t come as a surprise. After all, during the first quarter of this year several key banks announced they had had enough. Goldman Sachs, Nomura, Credit Suisse, as well as others, they all broadcast cuts to key operations. The FICC stuff, or bond trading to put it euphemistically. The very place the world actually gets dollars. Only, they aren’t dollars so much as shadow dollars or eurodollars. A credit-based global currency therefore requires a credit base, meaning bank...

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Canada Signals Japan For Bond Yields

Back in October, late October specifically, the Bank of Canada removed the word “gradual” from its policy statement. Inflation, staff Economists projected, was moving up as was the Canadian economy. It was finally time to become more aggressive. Freed from that one word, BoC officials could opt for a “rate hike” at every meeting. It was widely expected in December that’s what would happen – the first consecutive benchmark rate increases in the cycle. Canada was leading, way out in front of...

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‘Bond Trading’ Exodus, The Global Economy’s Q4 Landmine

It isn’t just US or European banks which are shrinking. The nature of this post-August 9, 2007, world is just that – global. Sure, there are regulations which have made investment banking more expensive. But there isn’t a rule or law that Wall Street (really Lombard Street) wouldn’t “discover” a way to circumvent it if they all thought it was worth the trouble. Bond trading, a euphemism for all this FICC money dealing stuff, didn’t need an LCR to look at the world differently. It only needed...

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The 10 “Grey Swans” Events For 2018

One of the traditional push backs against attempts to predict "black swan" events is that they are by default unpredictable, rendering the entire exercise moot. However, for the second year in a row, Nomura's Bilal Hafeez has found a loophole, or rather loop-animal: the grey swan. As Hafeez writes, while he would like to be able to predict black swans, by definition that is impossible. "However, its close cousin the grey swan can be foreseen. These are the unlikely but impactful events that,...

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Black Monday 2.0: The Next Machine-Driven Meltdown

Authord by Ben Levisohn via Barrons, In the rise of computer-driven trading, some hear echoes of the stock market’s 1987 crash. Beware the feedback loop... Black Monday. Although the event to which those two words refer occurred 30 years ago, they still carry the weight of that day—Oct. 19, 1987—when the Dow Jones Industrial Average shed nearly a quarter of its value in wave after wave of selling. No one in living memory had seen anything like it, at least not in the U.S.,...

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De-Dollarization Spikes – Venezuela Stops Accepting Dollars For Oil Payments

Did the doomsday clock on the petrodollar (and implicitly US hegemony) just tick one more minute closer to midnight? Source: The Burning Platform Apparently confirming what President Maduro had warned following the recent US sanctions, The Wall Street Journal reports that Venezuela has officially stopped accepting US Dollars as payment for its crude oil exports. As we previously noted, Venezuelan President Nicolas Maduro said last Thursday that Venezuela will be looking to...

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“Worse Than People Can Imagine” – Deutsche Bank To Shift $350 Billion Of Assets From London To Frankfurt

In a project dubbed 'Bowline', Bloomberg reports that Deutsche Bank may shift about 300 billion euros ($350 billion) from the balance sheet of its U.K. entity to Frankfurt as client trading and assets migrate to the continent following Britain’s decision to leave the European Union. While not the first bank to threaten to move post-Brexit, the scale of asset movement is the largest yet. Deutsche Bank’s balance sheet listed 1.59 trillion euros in total assets at the end of last yea and...

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Argentina Unexpectedly Announces Sale Of 100-Year Bonds

One year after Argentina emerged from its latest sovereign bankruptcy, and at a time when the Latin American nation grapples with a surging budget deficit, Argentina surprised markets by announcing (on Twitter) its intention to sell its first 100-year bond, taking advantage of a world starved for yield. The issuance, expected to price on Monday with a potential yield of 8.25% according to Reuters IFR - we expect this number to come down as the offering will likely be many times...

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Did Goldman Just Sell Venezuela’s Infamous “Hunger Bonds” (At A Profit)

News that Goldman purchased some $2.8 billion in Venezuela bonds issued by state oil company PDVSA and until recently held by Venezuela's central bank - at a 30% discount to market, paying 31 cents on the dollar or around $865 million in notional - quickly set off a firestorm of angry protests, in which Goldman was accused of making money from other people's misery (even though the story of Goldman's involvement in Venezuela's debt is hardly new, as we reported in 2014 in "How Goldman Sachs...

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Frontrunning: May 1

Congress Inks Spending Deal That Jettisons Trump Priorities (BBG) Trump Pushes for Vote on Health Bill but Hurdles Remain (WSJ) Apple’s Cash Hoard Set to Top $250 Billion (WSJ) Hamas to soften stance on Israel, Muslim Brotherhood in policy document (Reuters) UPS Tries a New Twist on Surge Pricing (WSJ) How Does Trump’s Tax Plan Help the Middle Class? ‘Honestly, We Don’t Know’ (BBG) French voters skeptical Macron, Le Pen have answers on key issues (Reuters) Trump Leaves Open Possibility of...

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