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A Sisyphean Struggle: Insights from BCG’s Treasury Benchmarking Survey 2016

BCG

In the two years since The Boston Consulting Group conducted its last ­Treasury Benchmarking Survey, banks have remained locked in a Sisyphean struggle. Low—and, in some cases, negative—­interest rates are a major part of this struggle and have dominated the economic environment for banks.

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French Banks Face €285 Bn Capital Shortfall, Germany €199 Bn, Spain €92 Bn; Mish French Fine Update

MishTalk

At the risk of incurring another nonsensical fine for quoting someone on leverage and capital ratios of French banks, please consider European Banks Face $1 Trillion Gap Before Review. The figures assume a benchmark capital ratio for other book measures of leverage of 7 percent, they wrote. “A What Shortfall?

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Pettis on Strains in China's Banking System; Avoiding the Fall

MishTalk

Next year will be a very important year for China because possible strains in the banking system and the intensity with which the reformers present their case will give us a better sense both of how much debt capacity the country retains and of how well positioned Xi Jinping and his allies are to implement the needed reforms.

Banking 71
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China Margin Debt Soars to Record 1 Trillion Yuan; Another Central Bank Sponsored Bubble

MishTalk

SSEC Shanghai Stock Exchange Monthly click on any chart for sharper image $SSEC Shanghai Stock Exchange Weekly Cannot Wait to Get In Since July 2014, the index has gone from roughly 2066 to 3810. The city’s benchmark index has surged 86 percent during that time, more than any of the world’s major stock gauges. Traders have opened 2.8

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Swiss Bank Hits Customers With Negative Interest Rates; Crazy? What About Velocity?

MishTalk

Alternative Bank Schweiz (ABS), a small bank in Switzerland broke the negative interest rate on deposits barrier, CHARGING customers to cake their money. The Alternative Bank Schweiz wrote to customers telling them they would face a -0.125 per cent rate on their money from 2016 – and a -0.75 emphasis in caps from the article).

Banking 28
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Ukraine PM Accuses Russia of Wanting WWIII; Kiev Forces Block Rebel Town; Russia Issues Downbeat Economic Statement

MishTalk

Ukraine forces barricade the rebel stronghold of Slavyansk Russia Issues Downbeat Economic Statement The World Politics Journal notes Russia’s central bank issues a downbeat statement on the Russian economy. On Friday, April 25th, Russia’s central bank raised its benchmark interest rate by 50 basis points to 7.5

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Reflections on the "Sure Trade" of 2014; Yield Curve Inversion Possible? Five "Sure Things" for 2015?

MishTalk

100% of economists predicted yields on the long end of the US treasury curve would rise in 2014. The 5Yr-3Yr spread is 50 basis points (about half of what it was at the beginning of 2014). percentage points in March 2014. There’s a 67 percent chance the Fed will raise its benchmark rate to at least 0.5 2.47 -1.49

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