Investor spending more in credit fund
Goldman Sachs’ survey shows pension funds and insurance companies are increasing their allocation to credit and equities hedge funds in 2023. A total of 31% of investors anticipate spending more in credit hedge funds, mainly in long/short and distressed strategies. However, the study found that investors have not yet deployed the funds. Equity long/short strategies…
Higher Rate boost one of Italian banks profit more than 10 times
Monte dei Paschi di Siena reported above-forecast second-quarter results, with net income of 383 million euros ($420 million), exceeding the bank’s 217 million euro consensus projection. Net interest income nearly doubled, and revenues rose 11% to 972 million euros. Net fees increased, and MPS reduced costs despite inflation. CEO Luigi Lovaglio is cutting employees and…
The Fed emergency lending facility are helping US banks
US banks continue to use the Federal Reserve’s emergency lending facility, the Bank Term Funding Program, to meet withdrawal needs after bank failures shook the global banking system. Fed loans increased to $105.7 billion, while the discount window borrowed $1.9 billion, down from $2.2 billion. The best selling factor of the new program was borrowing…
The BoE is expected to raise rates for the 14th consecutive times
The Bank of England is expected to hike interest rates to 5.25% from 5% on Thursday, as inflation remains the highest among major nations. The BoE has raised rates by a quarter of a percentage point last week, and markets believe they are nearing the conclusion of their rate-tightening cycles. The Bank of England’s rate…
Australians demand government to make working from home to become the norm
Melbourne property surveyor Nicholas Coomber uses remote work to complete assignments before COVID-19 sent one-third of the global workforce home. The surveyors can leave for the field at 7:30 a.m., allowing them to pick up their children from daycare sooner. Australian unions are setting a precedent by suing the country’s largest bank and wrangling with…
Fitch has reduced two more debt rating from ‘AAA’ to ‘AA+’
Fitch reduced Fannie Mae and Freddie Mac’s Long-Term Issuer Default Ratings and senior unsecured debt ratings to ‘AA+’ from ‘AAA’ after a US rating drop. The downgrade was not due to fundamental credit, capital, or liquidity deterioration. The one-notch downgrade won’t materially impact investing decisions.
“Market are the decisions maker, not an agencies ratings” said JP Morgan CEO
Fitch Ratings downgraded the US government’s top credit rating from AAA to AA+ on Tuesday, citing budgetary and political instability. JPMorgan Chase CEO Jamie Dimon said the downgrade doesn’t matter much, as markets make big decisions, not ratings agencies. The Biden administration called the rating “arbitrary” after the White House and Congress escaped a debt…
The most anticipated recession of US economy
The Bank of America US Economist Michael Gapen has revised higher its outlook for economic activity this year and next, no longer expecting the economy to fall into a mild recession in 2024. The Bank of America expects the Fed’s rate hike to conclude in a soft landing, where growth falls below trend in 2024…