Most Clicked CFA Institute Financial NewsBrief Stories
1. Fed: JPMorgan had $101.3B net credit derivatives exposure in March
CFA Institute Financial NewsBrief | May 25, 2012
Federal Reserve data show that as of March 31, JPMorgan Chase sold $101.3 billion worth of long-dated derivatives protecting against default by investment-grade firms more than it had purchased. The size of the bank's net credit default swaps position was more than twice its position at the end of December. Fox Business (24 May.)
2. European firms brace for Greek violence and financial meltdown
CFA Institute Financial NewsBrief | May 29, 2012
European firms doing business in Greece are taking precaution against multiple outcomes as financial and political turmoil intensifies. Companies are bracing for scenarios including violent looting of stores, similar to 2011 riots in London, and a collapse of Greece's financial system. Kathimerini (Greece) (28 May.) New York Times (tiered subscription model), The (29 May.)
3. EU calls on Greece to stay in eurozone but braces for exit
CFA Institute Financial NewsBrief | May 24, 2012
EU leaders appealed to Greece to remain in the eurozone but began work on a contingency plan if Greece withdraws. "We want Greece to stay in the euro, but we insist that Greece sticks to commitments that it has agreed to," German Chancellor Angela Merkel said. Bloomberg (24 May.) Reuters (24 May.) Deutsche Welle (Germany) (24 May.)
4. Analysis: India faces rising default risk as rupee falls
CFA Institute Financial NewsBrief | May 23, 2012
Market players are starting to worry that India's deepening economic crisis and political paralysis could drive Asia's third-biggest economy into default, according to the International Financing Review. India's financial and corporate sectors would be hit hard by the rupee's collapse. Times of India, The (23 May.) International Financing Review (free content) (22 May.)
5. Editorial: Europe gave Germany as big of a bailout as Greece
CFA Institute Financial NewsBrief | May 25, 2012
The oft-expressed characterization of Germany as Europe's prudent adult and Greece as its financially reckless child is supported by few facts, according to this Bloomberg editorial. Although the situation went unnoticed, Germany received at least as much financial support from European taxpayers as Greece did. Bloomberg (23 May.)
6. Analysis: JPMorgan sells profitable securities to cover loss
CFA Institute Financial NewsBrief | May 29, 2012
JPMorgan Chase propped up earnings after its massive trading loss by selling an estimated $25 billion of securities that were profitable. The sales compounded costs associated with the loss, caused by the bank's "London whale." Reuters (29 May.)
7. Support builds for euro bonds but proposals lack detail
CFA Institute Financial NewsBrief | May 28, 2012
French President Francois Hollande's proposal for the eurozone to pool its debt through the sale of euro bonds is drawing support, but many experts are waiting for details. German Chancellor Angela Merkel is only willing to support eurozone "project bonds," which back infrastructure investments that would benefit all Europeans. New York Times (tiered subscription model), The (27 May.)
8. CBO: Taxes and spending cuts likely will send U.S. into recession
CFA Institute Financial NewsBrief | May 23, 2012
The U.S. likely will fall back into recession if scheduled spending cuts take effect and Bush-era tax cuts are allowed to expire this year, the Congressional Budget Office said. If the U.S. falls off this "fiscal cliff," the economy will probably contract 1.3% in the first half of 2013, the CBO said. Manufacturing.net (22 May.) CNNMoney (22 May.) Reuters (22 May.)
9. Germany sells $5.8B worth of its first zero-percent bond
CFA Institute Financial NewsBrief | May 24, 2012
Confirming its safe-haven status, Germany sold its first bond that provides no regular return. The government sold $5.8 billion worth with a zero-percent coupon. The debt priced at a small discount to face value, giving investors an average yield of 0.07%. Reuters (23 May.)
10. Europe's leveraged-loan defaults could hit 25%, Moody's warns
CFA Institute Financial NewsBrief | May 29, 2012
As Europe's economy continues to go downhill, 25% of leveraged-buyout firms with debt maturing by the end of 2015 might default on their obligations, Moody's Investors Service said in a report. "The 2014-2015 refinancing risk remains large and worrisome given our expectations of protracted macroeconomic weakness, combined with the weak average credit quality of this universe," according to the report. Wall Street Journal, The (29 May.) Bloomberg (29 May.)
