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GC Asia
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Liquidity makes a market, the ECB takes it away
Despite the Eurozone covered bond market’s huge size, its inherent liquidity is dwarfed by much smaller sectors outside the trading block — effectively meaning ‘the market’ is slowly but surely becoming impotent.
15 Oct 2020 -
Markets must beware blue wave complacency
Equity markets are pricing in a big win for Democrats in the US elections in November, meaning a large post-election stimulus package to help the economy through Covid-19. However, they should be wary as president Donald Trump is far from beaten.
15 Oct 2020 -
There is no quick fix for bank profitability
Policymakers should be careful about rushing into action over signs that bank profitability is collapsing.
08 Oct 2020 -
EU can’t have it both ways on securitization
The European Parliament’s proposals on the role of the securitization in fixing the European economy are set to nullify any benefit STS might grant to the synthetic market. With Europe’s economy at stake, the Parliament must decide whether ABS is a hindrance or a help.
08 Oct 2020 -
Colombia is right to lean on the IMF
Colombia will become the first country to ever draw funds from an IMF flexible credit line (FCL), the Fund’s facility for its star pupils. In these exceptional times, Colombia should ignore any stigma associated with tapping IMF funding and be applauded for healthy pragmatism.
01 Oct 2020 -
ECB can do better than a green TLTRO
The ECB is mulling the idea of green Targeted Longer-Term Refinancing Operations to boost green lending. It's a noble aim — but it should work with the policies it has first, if it is serious about environmental impact.
01 Oct 2020 -
Central banks are on the path to prioritising green assets
The European Central Bank's decision to embrace sustainability-linked bonds (SLBs) as collateral and for its asset purchase programme is a sign of what is to come.
24 Sep 2020 -
Stop hand-wringing about the sovereign doom loop
The coronavirus pandemic has sparked an unprecedented wave of sovereign borrowing. Much of the paper has, unsurprisingly, ended up on the balance sheets of domestic banks. This has, equally unsurprisingly, prompted a fresh round of worry about the strengthening of the sovereign-bank nexus.
24 Sep 2020 -
Stripy bond market will offer no camouflage
The green bond market was conceived on a simple plan. A new class of green bonds would finance environmental projects, standing out from the grey mass of ordinary bonds.
17 Sep 2020 -
UK issuers: a lesson in pessimism
Recent Brexit developments prove that UK banks were right to pile into the market earlier this year.
17 Sep 2020
