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- Analysis: Washington and Wall Street face "fiscal cliff"
If Congress does not take action on the "fiscal cliff," some experts say it will push the U.S. back into recession and roil the markets. Others anticipate a sanguine reaction from the markets. Many on Wall Street expect Congress to postpone changes. "They'll have to do some sort of short-term extension to buy some time to develop the larger component of addressing the fiscal cliff, which is a large-scale fiscal plan," said SIFMA's Ken Bentsen. Meanwhile, Andrew Ross Sorkin writes in the New York Times that the results of the presidential election won't do away with the uncertainty that is widely blamed for why the U.S. can't produce a robust economic recovery. Reuters
(11/6), The New York Times (tiered subscription model)/DealBook blog
(11/5)      
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- Banks find Basel proposal for forex unnecessary
Banks have branded as unnecessary a measure by the Basel Committee on Banking Supervision to increase capital holdings to provide a safety net for foreign exchange settlements. GFMA's Global FX Division said such a setup would run counter to recent efforts to reduce outstanding principal exposure. "With regard to any capitalization of settlement risk, the implied security of a capital charge would be small compared with the value of any actual settlement failure," said James Kemp, managing director of the division. "Prevention of settlement risk occurring therefore becomes paramount -- rather than attempting to insure against the loss." Risk.net (subscription required)
(11/5)
- Bond investors worry about Bernanke's fate after election
Bond investors say the "fiscal cliff" will be something to worry about regardless of who wins today's presidential election -- Barack Obama or Mitt Romney. However, the outcome could affect another issue close to bond investors' hearts: The retention of Ben Bernanke as chairman of the Federal Reserve. If Romney is in, they say, Bernanke will most surely be out. Reuters
(11/5)
- Government-bond markets land on positive ground
All 26 government-bond markets monitored by Bloomberg and the European Federation of Financial Analysts Societies are producing positive annual returns for the first time since 2008. The development comes amid strong demand for government debt. "The longer-term bull market in government bonds is still intact all over the world," said Howard Simons, a strategist at Bianco Research. Bloomberg
(11/5)
| Washington Roundup | | |
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- FSB aims to revamp shadow banking by September
The Financial Stability Board is looking to overhaul rules for shadow banking, including money market mutual funds, by September. The global regulator also plans to propose rules aimed at systemically important nonbank institutions. "Vigilant oversight of shadow banking activities will be required to respond to inevitable market mutations," according to the FSB. "The approach is designed to be proportionate to financial stability risks." Bloomberg
(11/5)
- Election likely will affect Labor's fiduciary proposal
The Labor Department's proposal to apply the "fiduciary" definition more broadly may get some direction depending on the outcome of today's presidential election. Another Obama administration could breathe new life into the measure, while a Mitt Romney presidency would likely spell its doom. Meanwhile, the fate of the SEC fiduciary-duty rule is less affected by the election, said Kevin Carroll, SIFMA's managing director and associate general counsel. "In a Democratic administration, it is slightly more likely to move forward; in a Republican administration, slightly less likely," Carroll said. InvestmentNews (free registration)
(11/4)
- Regulators begin to ease up on rule changes
With clarity increasing among regulators regarding possible consequences of wholesale rule changes in Europe, authorities are beginning to soften their positions, industry observers say. "We have seen a degree of relaxation in liquidity standards imposed on banks," said Bob Penn, a regulatory partner at Allen & Overy. "There will be greater political intervention to meet political goals around economic growth, and that will involve laying off capital and liquidity regulations." Financial News Online (U.K.) (subscription required)
(11/5)
- Editorial: Dodd-Frank pushes swaps trading overseas
The Commodity Futures Trading Commission is working on rules that will drive derivatives trading to foreign jurisdictions, this editorial argues. The CFTC is moving ahead with the regulations, despite concerns from foreign regulators and the industry. Another issue is that the rules, as mandated by the Dodd-Frank Act, will increase U.S. taxpayer exposure to the derivatives market, the editorial argues. The Wall Street Journal
(11/5)
| SIFMA News | | |
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- SIFMA 2013 Securitization Outlook Conference -- Dec. 6 -- New York City
SIFMA's 2013 Securitization Outlook Conference will discuss the near-term outlook for the housing markets, how the housing market will continue to recover, and ask the questions that must be addressed as we develop the nation's new system of housing finance. FHFA Acting Director Edward DeMarco will keynote this half-day program and provide his insight on the outlook for both of the agency and non-agency MBS markets in 2013. Register today and also get the latest proposals to use eminent domain to seize underwater mortgage loans and the regulatory and market outlook for private-label securitization markets.
- Latest SIFMA Research: U.S. Municipal Bond Credit Report, 3Q 2012
SIFMA Research reports include regular outlooks and forecasts, research quarterlies, and essential industry factbooks and yearbooks. Last week, SIFMA issued its U.S. Municipal Bond Credit Report, 3Q 2012, a quarterly report on the trends and statistics of U.S. municipal bond market, both taxable and tax-exempt. The report includes issuance volumes, outstanding, credit spreads, highlights and commentary. SIFMA also recently released its 2012 Fact Book, an annual resource containing comprehensive data on the securities industry, capital markets, market activity, investor participation, global markets, savings and investment, and much more. Purchase the SIFMA 2012 Fact Book and have the latest data at your fingertips.
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