The biggest US banks amassed $2.2 trillion of government and mortgage bond investments, but now the portfolios are underwater and banks must hold them to avoid recording losses. This will have a lasting effect on deposits and the impact of Fed policy.
Emerging market nations may struggle to repay debt in the wake of the coronavirus pandemic. And for many the biggest lender is China, as a new visualisation shows.
Frontier market sovereigns are splurging on new borrowing just as investors are cooling on the asset class. A Risky Finance visualisation tool identifies the countries you need to watch.
Why can't the ECB bring itself to stress test banks for deflation? I was thinking about this question when I remembered an episode from the past. Just over ten years ago, I took a train from Frankfurt to the sleepy spa town of Wiesbaden. It was the sort of place where a lone taxi is… Continue reading..