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Apr 17, 2014

Head of derivatives lobbying group ISDA to step down

April 17 (Reuters) – Derivatives lobbying association the
International Swaps and Derivatives Association said on Thursday
its Chief Executive Officer Robert (Bob) Pickel will step down
from the role this year.

An attorney by training, Pickel has worked at ISDA in
various positions for 17 years and was CEO of the association
from 2001 to 2009, returning to the top role in 2011.

Mar 3, 2014

Ukraine conflict sends yields to 4-week low

NEW YORK, March 3 (Reuters) – U.S. Treasury debt prices rose
on Monday as Russia’s military intervention in Ukraine increased
demand for safe-haven investments like U.S. government debt,
pushing yields to the lowest in almost a month.

Russia took a financial hit over its military intervention
in neighboring Ukraine, with its stocks, bonds and currency
plunging as President Vladimir Putin’s forces tightened their
grip on the Russian-speaking Crimea region.

Jan 25, 2014

Exclusive: Bank of America’s trading practices have been probed, filing shows

NEW YORK/WASHINGTON (Reuters) – The U.S. Department of Justice and the Commodity Futures Trading Commission have both held investigations into whether Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz) engaged in improper trading by doing its own futures trades ahead of executing large orders for clients, according to a regulatory filing.

The June 2013 disclosure, which Reuters recently reviewed on a website run by the securities industry regulator FINRA, sheds light on the basis for a warning by the Federal Bureau of Investigation on January 8.

Jan 25, 2014

Bank of America’s trading practices have been probed, filing shows

NEW YORK/WASHINGTON, Jan 25 (Reuters) – The U.S. Department
of Justice and the Commodity Futures Trading Commission have
both held investigations into whether Bank of America
engaged in improper trading by doing its own futures trades
ahead of executing large orders for clients, according to a
regulatory filing.

The June 2013 disclosure, which Reuters recently reviewed on
a website run by the securities industry regulator FINRA, sheds
light on the basis for a warning by the Federal Bureau of
Investigation on Jan. 8.

Jan 9, 2014

December bond taper surprised most dealers -NY Fed poll

NEW YORK, Jan 9 (Reuters) – Few dealers expected the Federal
Reserve to decide to pare back its massive bond-buying stimulus
program in December, after the U.S. central bank surprised many
investors by continuing the purchases at an unchanged pace in
September, according to the results of a poll by the New York
Fed released on Thursday.

The poll, taken before the Fed’s Dec. 17-18 meeting, when it
reduced its monthly Treasuries and mortgage-backed program by
$10 billion to $75 billion beginning in January, showed that
only 25 percent of primary dealers expected the Fed would cut
its purchases of Treasuries in December, and only 18 percent
expected a reduction in mortgage-backed securities.

Dec 2, 2013

Yields rise on payrolls anxiety, heavy data week

NEW YORK, Dec 2 (Reuters) – U.S. Treasuries yields rose on
Monday as investors took a cautious stance ahead of a heavy week
of data, culminating in Friday’s highly anticipated November
employment report, which will be scoured for signals about the
Federal Reserve’s future decisions.

Investors are evaluating when the Fed is likely to view the
economic recovery as being strong enough to begin paring its $85
billion-a-month bond purchase program, after the U.S. central
bank in September surprised investors, who were expecting a cut
in purchases, by leaving it unchanged.

Nov 29, 2013

Prices end flat before heavy week of economic data

NEW YORK, Nov 29 (Reuters) – U.S. Treasuries ended flat
after a choppy, shortened trading session on Friday as month-end
buying offset some earlier weakness and investors turned their
focus to economic data next week expected to bring new clues
over Federal Reserve policy.

Treasuries had weakened earlier in light trading volumes
with many traders off on Friday. The market closed early after
being closed on Thursday for the U.S. Thanksgiving holiday.

Nov 26, 2013

Margin deposit practices in focus as clearing firms gain clout

NEW YORK, Nov 26 (Reuters) – When U.S. broker MF Global came
under pressure from lenders, trading partners and clients two
years ago, one of the biggest claims for its funds came from
LCH.Clearnet, a company not very well known outside financial
markets.

London-based LCH is one of the world’s largest
clearinghouses, a group of companies that are emerging as the
new superpowers of the global financial system. They guarantee
trades, making good on payments if a trading partner fails.

Nov 14, 2013

Banks may lose perk as Fed mulls cutting rate on excess cash

NEW YORK (Reuters) – Talk that banks may lose an interest rate perk for parking excess cash with the Federal Reserve was revived on Thursday, after Janet Yellen said the U.S. central bank may consider cutting the rate.

The Fed introduced the Interest on Excess Reserves rate (IOER) during the depths of the financial crisis in 2008 as a means of helping the central bank control short-term interest rates. Excess reserves at the Fed have ballooned to around $2.3 trillion, from near nothing before their introduction, Fed data shows.

Nov 13, 2013

Analysis: As assets surge, bond investors worry over liquidity traps

NEW YORK (Reuters) – Asset managers’ bond holdings are surging as banks that traditionally facilitated trades in debt markets scale back, raising fears that increasingly one-sided markets are at a greater risk of frantic selloffs.

Big U.S. companies, including Verizon (VZ.N: Quote, Profile, Research, Stock Buzz) and Apple (AAPL.O: Quote, Profile, Research, Stock Buzz), have been selling record numbers of bonds to seemingly insatiable demand, as unprecedented stimulus from central bank bond purchases makes borrowing favorable for big corporations and as investors stretch for higher returns.