-
Just as investors are starting to worry that inflation may not be transitory after all, so issuers should be concerned that primary market conditions may become more treacherous -
Until the European Central Bank starts to pull back from providing such cheap repo lending, issuers have little incentive to diversify their funding
-
If the European Central Bank is serious about promoting banking sector consolidation, it must wean issuers off the Targeted Long Term Refinancing Operation
-
Central banks’ control was once limited to financial matters — they squatted in the corner, largely unseen. Now, they are stars in the drama — active, talkative stewards of the economy. Society looks to them to solve its problems; not to synch with government, but to make up for its deficiencies.
-
Communication is the only real policy tool where the European Central Bank still has wiggle room.
-
The build-up of court cases during the pandemic has rendered the investment profile of mortgage performance — a key metric for structured finance investors — ever more difficult to predict.
-
Is finance about to break out of the cocoon in which it has pupated for decades, and become a completely different life form?
-
Banks that have access to diverse pockets of demand will be far better equipped to deal with any contraction in central bank liquidity, which could occur if high inflation spooks policy makers and markets.
-
-
The skittish state of investor demand that was recently on display in covered bonds may herald a reassessment of credit, particularly as spreads are back to pre-pandemic levels and seemingly have limited potential for further performance.
