The European Central Bank doesn't need to pick up the pace of its actions to fight inflation, following the lead of the US Federal Reserve, because the US economic recovery is ahead of that in the eurozone, according to ECB President Christine Lagarde. "So we have every reason not to act as quickly or as ruthlessly as one might imagine with the Fed," she said.
Financial market participants are warning that the pressures governments are under due to the sharp increase in inflation could lead them to water down policies adopted to aid the transition to a zero-carbon-emissions economy. "Given we're living in a time of soaring energy prices, the question is, will governments and stakeholders stick to their word and not start fiddling around with energy prices and subsidies or other forms of support?" asked Luca de Lorenzo, head of sustainability at the Nordic Investment Bank.
CQS, the hedge fund run by Michael Hintze, is looking into rolling out a collateralized loan obligation in Europe that complies with environmental, social and governance criteria, according to a letter to investors seen by Bloomberg. Today, CLOs provide "some of the highest, most attractive yields" offered by alternative credit products, the letter says.
US banks' interest in buying Treasurys is likely to fall off as they focus on growing their lending, putting pressure on Treasury yields, according to a report from Credit Suisse analyst Zoltan Pozsar. "We are now at a stage where banks are more interested in making loans than buying securities - and that should have the back end of the Treasury market concerned", Pozsar said.
Citigroup, Goldman Sachs and Man Group have joined the list of London financial firms instructing workers to return to their desks after the UK government withdrew its guidance to work at home. Citigroup expects workers to be in the office at least three days a seek, Goldman Sachs wants employees back at their desks by Wednesday, and Man Group said it expects workers to increase their time at the office.
Asia's electronic bond trading is no longer largely limited to G3 and yuan-denominated debt. The region's electronic trading venues are attracting more local bonds, while buy-side firms increased their share of electronic execution from 14% in 2016 to over one third in 2020, according to research by Coalition Greenwich.
Pegasus Asia, a special-purpose acquisition company, raised the equivalent of $126 million in its initial public offering today, making it the second SPAC to go public in Singapore this month. A third SPAC backed by private equity firm Novo Tellus is expected to come to market in the city-state later this month.
JPMorgan Chase private banking in Latin America has posted its best performance on record last year, helped by strong performance of private investments in technology. From 2020 to 2021 assets managed for clients in the region grew by 13% to $180 billion.
The Federal Reserve published a long-awaited study Thursday which outlines the benefits and risks of establishing a digital dollar, though it does not take a firm position on whether the central bank should issue such a currency. The Fed said the 40-page document is "the first step in a public discussion between the Federal Reserve and stakeholders about central bank digital currencies."
Spain, Singapore and the UK are working on rules for promotion of cryptoassets to protect consumers from abusive practices. "In 2022, we expect regulators to finally make a decision on how to handle crypto and consumer protection," said Bradley Rice, partner at law firm Ashurst.
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