What a Drag: The Burden of Nonperforming Loans on Credit in the Euro Area

By Will Kerry, Jean Portier, Luigi Ruggerone and Constant Verkoren: High and rising levels of nonperforming loans in the euro area have burdened bank balance sheets and acted as a drag on bank profits. Banks, striving to maintain provisions to cover bad loans, have had fewer earnings to build-up their capital buffers. This combination of weak profits and a decline […]

Emerging Market Corporate Sector Debt: A Stitch in Time Could Save Billions

By Julian Chow and Shamir Tanna Much has been said lately about growing private sector debt in emerging market economies. In our recent analysis, we examined the corporate sector in a number of countries and found their rising levels of debt could make them vulnerable. Low global interest rates in the aftermath of the global financial crisis and […]

Has Commercial Bank Lending Peaked?

One of the concerns that inflation hawks continue to discuss is the potential for trouble when banks start lending out all that liquidity that’s sitting on their balance sheets. At that point, we’re told, inflation will return with a vengeance and the Fed’s great monetary stimulus will become a burden. But inflation remains subdued, with […]

Macro-Markets Risk Index: 12.2%

The US economic trend has rebounded in early November after slumping during the past two months, according to a markets-based profile of macro conditions. The Macro-Markets Risk Index (MMRI) closed at 12.2% on Wednesday, Nov. 6—a level that suggests that business cycle risk remains low. One interpretation of the benchmark’s revival is that it reflects […]

Has QE Stimulated Credit?

Yves here. As much as the post below is a very useful recap of data in terms of the impact of QE, I need to hector “Unconventional Economist” for being pretty conventional. His headline question, whether intentionally or not, reinforces the notion that it was reasonable to think that QE, or super low rates generally […]

The Elephant In The (Money Management) Room

The concept of risk management receives a lot of attention in the investment realm, and rightly so. Chasing return directly, by contrast, is almost certainly doomed to failure. In other words, risk management is the only game in town. But talking about it is one thing; applying it in a meaningful, productive way that delivers […]

Argentina and the Presentation to the Second Circuit US Court of Appeals

Argentina’s debt crisis of 2001/2002 was a profound and painful one. The 2005 restructuring proposal reflected the difficulties suffered by the country (see my blog http://www.economonitor.com/blog/2008/09/some-reflections-on-argentinas-debt-restructuring/). The acceptance reached about 74%, therefore there was still a substantial percentage of holdouts. Sometime in 2006 or 2007, and for reasons that still escape me, people from an […]

Nowakowski on CNBC to Discuss Cyprus

RGE’s Senior Director of Research David Nowakowski appeared on CNBC to discuss the evolving situation in Cyprus, where depositors are moving out, Russian investors are cautious and bank runs have returned. View the videos below, or go to CNBC for clips here, here and here.

Conforming to EMIR Confirmations

Article 11(1) of EMIR requires all financial counterparties (“FC”), non-financial counterparties which have exceeded the clearing threshold (“NFC+”) and non-financial counterparties which have not exceeded the clearing threshold (“NFC-”) to establish “appropriate procedures and arrangements” to ensure the timely confirmation of the terms of all non-cleared OTC derivative contracts. On 15 March 2013, the majority […]

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