South Africa: Central Banks Holds Rates Steady Oct 24, 2009
That convinced local money markets that interest rates were set to rise late next year, after being reduced by five percentage points since December. But some economists think otherwise. (allAfrica.com)
N.C. tax collections slide Oct 24, 2009
With less cash on hand, fiscal managers had fewer dollars to invest in money markets and other short-term investments. As a result, investment earnings declined by $11. (Charlotte Business Journal, NC)
Inflation returns as a worry Oct 23, 2009
A key word - imprudent - in the minutes got money markets further tinkering with the idea of a larger 50 basis point increase in the cash rate at the next meeting on Melbourne Cup Day. The minutes said that while downside risks to the domestic economy could not be ruled out, they had diminished significantly. (Sydney Morning Herald -- Business)
Unconventional monetary policy: Loose thinking Oct 22, 2009
It also produced unwelcome side-effects, such as a deterioration in the functioning of the money markets because banks preferred to transact with the BoJ rather than with each other. Mr Shiratsuka draws several conclusions. (The Economist)
Impact of the Global Financial Crisis and Its Implications for the East Asian Economy, Keynote Speech by Mr. Takatoshi Kato, Deputy Managing Director, International Monetary Fund, At the Korea International Financial Association, First International Conference Oct 22, 2009
And, shortages in dollar funding briefly spilled over into domestic money markets. The reversal of private flows was followed by a collapse in exports, which contracted by around 30 percent in many Asian countries, and more than 40 percent in Japan. (IMF News)
N.Z.'s Bollard Says Currency's Gains Not an Impediment to Increasing Rates Oct 21, 2009
Bollard said the currencys gains are being driven by a weak U.S. dollar and money markets which are already factoring in rises in the official cash rate, according to the broadcaster. Last Updated: October 20, 2009 20:01 EDT. (Bloomberg -- Australia & New Zealand)
Carney May Keep Rate at Record 0.25%, Warn About Risks of Strong Currency Oct 20, 2009
Money markets have priced in no chance of a rate increase. The bank will also probably repeat a commitment to keep the rate unchanged through June 2010 unless the inflation outlook shifts, economists said. (Bloomberg -- Canada)
Rates are going up, Rudd warns Oct 16, 2009
Money markets are pricing in a 70 per cent risk of a 50-basis-point increase in the cash rate to 3. 75 per cent when the central bank board next meets on November 3, Melbourne Cup Day. (Sydney Morning Herald -- Australia)
Rate swap at year high Oct 15, 2009
MUMBAI: Government five-year interest rate swap climbed to its highest in almost a year on Thursday, while bond yields steadied after an early rise as traders awaited inflation data by midday (0630 GMT). The central bank is expected to talk tough on inflation but hold off for now on an inevitable 00004000 increase in interest rates when it reviews policy on Oct 27 as fostering a recovery in growth takes precedence. (India Times)
Asian trading subdued ahead of earnings Oct 12, 2009
The greenback has been battered by investors shifting funds out of safe-haven US Treasuries and money markets and into higher-yielding emerging market assets, and by worries that central banks are cutting their share of foreign reserves held in dollars. Thailands central bank governor signalled on Monday that it would intervene further to curb gains in the baht against the dollar and said it was diversifying reserves after weeks of such intervention. (FT.com -- Markets)
Frankfurt Trust Buys Yen, Betting on Advance for the First Time Since 2006 Oct 11, 2009
Central banks worldwide cut borrowing costs and pumped billions of dollars into money markets in the past year to overcome the worst global economic slump since World War II.. For a long time, Japanese monetary policy marked the extreme end of the policy spectrum, but that has changed, Kind said. (Bloomberg -- Germany)
Fed Said to Consider Clearing Banks, Facility to Drain Reserves With Repos Oct 9, 2009
One of the goals could be that the Fed is trying to distribute paper without encumbering dealers balance sheets while utilizing existing distribution channels to expand the transactions to money markets, said chief fixed-income rates strategist in New York at primary dealer Cantor Fitzgerald LP. ... 33 trillion in mortgage, government-housing agency and Treasury debt, would also be supplying short-term assets to the money markets at a time when corporate issuance has declined and following... (Bloomberg -- US)
COCOBOD and national interest The 419 Scheme Exposed! Oct 9, 2009
By by-passing domestic money markets for external financing, COCOBOD is denying Ghanaians the ability to build wealth and capacity of being economically empowered. COCOBOD is consciously enriching foreign capitalists and impoverishing Ghanaians and African Diaspora investors in Ghana's economy. (Ghana Web, Ghana)
More rate rises likely in 2009: experts Oct 8, 2009
The Australian dollar spiked above 90 US cents for the first time in 14 months on the report as money markets all but priced in further interest rate increases for both November and December. All four major banks - ANZ, Commonwealth Bank, National Australia Bank and Westpac - raised their standard variable mortgage rates by 25 basis points after Tuesday's increase in the cash rate to 3. (Sydney Morning Herald -- Australia)
ECB set to hold rates, caution on economy Oct 8, 2009
Markets also expect to hear the ECB's view of last week's 12-month tender, which saw demand fall to just 75 billion euros from 442 billion in June -- reducing the amount of extra liquidity in money markets. Broux said there were two possibilities for the decline. (Yahoo News -- Press Releases)
Capital-infused companies better bets for investors Oct 5, 2009
As the global economic situation continues to improve and liquidity returns to money markets across the world, many Indian companies are raising funds through qualified institutional placements (QIPs) and global depository receipts (GDRs). It is important for investors to understand the impact of QIP/GDR on the financial health of the company. (India Times)
Brazil begins to unwind stimulus Sep 30, 2009
To combat the credit crunch that pushed Brazil into recession, the central bank injected about 100 billion reais into money markets to spur economic growth by stimulating loans. "The central bank is unwinding because the country is no longer in a crisis situation," said Alexandre Lintz, chief strategist with BNP Paribas. (Business Report, South Africa)
Gains in rand won't stop recovery: Absa Sep 30, 2009
In line with market consensus, Absa Capital sees "little prospect" of any direct intervention given the cost in local money markets. The resilience of the rand's recovery may help allow the Bank to leave local interest rates lower for longer by muting some of the inflation pressures in SA. These included "generous" wage hikes and household utility prices that were rising much faster than the latest inflation rate of 6,4%, Absa Capital said. (Business Report, South Africa)
Europe shares set for best quarterly rise in 10 years Sep 30, 2009
Lacklustre demand would strengthen the ECB's belief that money markets are on the mend, But strong demand would mean levels of cash held by banks remain at exceptionally high levels until the middle of next year, unless the ECB takes steps to drain it from the market. The Australian dollar, which has been on the uptrend after recent market talk about an imminent rate hike lifts its yield allure, received a further boost as data showed consumers continue spending even as the stimulus programme... (Yahoo News -- Press Releases)
The rally in financial markets: Liquid fuel Sep 25, 2009
Some of this rally is down to sheer relief that the market is out of crisis mode (the cost of borrowing in the money markets is back to near-normal levels, for example). The more difficult question to answer is whether the surge is the start of a long-term bull market or simply yet another bear-market rally, like those Japan enjoyed in the 1990s. (The Economist)
HBOS and RBS 'almost went under' Sep 25, 2009
Mr King described how strains in the money markets came to a head on 6 October and 7 October last year. EYE OF THE STORM 15 Sept - Lehman Brothers goes bankrupt 17 Sept - Lloyds announces takeover of HBOS 29 Sept - B&B mortgage business nationalised 3 Oct - Bank deposit guarantee raised to 50,000 8 Oct - UK announces scheme to rescue banks and central banks make emergency rate cut 11 Oct - G7 leaders meet 13 Oct - RBS, HBOS and Lloyds in effect nationalised. (BBC News -- Business)
Investors don't feel like taking chances with stocks, spending Sep 25, 2009
84 trillion at the end of 2008, but most of the shift out of money markets has been by institutions, not retail investors, data show ... While he has stayed the course with his investment portfolio, he now spends a lot of time "tracking down the highest-paying money markets and CDs" for new cash. (USA Today -- Money)
Fidelity, Vanguard discuss money fund backstop: report Sep 20, 2009
CHICAGO (Reuters) Fidelity Investments and Vanguard Group Inc. are among those discussing the creation of a cash reserve to blunt a run on money markets like the one that occurred last September, according to a report by Bloomberg on Saturday. Attributing the information to anonymous sources, Bloomberg said the companies may set up a cash reserve to be known as Liquidity Exchange Bank. (Yahoo News -- Press Releases)
Making mortgages Sep 20, 2009
The same is true if they go to the newly re-opened international money markets where they can borrow money at a variable rate. So they go to brokers like ICAP to find other banks who are prepared to swap the fixed interest payments they will get for a regular variable payment linked to current interest rates. (BBC News -- UK)
Evaluating performance Sep 20, 2009
Many investors are unhappy with the performance of their balanced funds because they have underperformed money markets over the last year. Over the last year the Alexander Forbes Money Market Index (AFMMI) has returned 10. (iAfrica.com)
Q&A: Spending cuts Sep 18, 2009
The Tories say cuts should start now - or Britain will risk losing credibility on the money markets, leading to a rise in interest rates, potentially wrecking any recovery. Labour and the Lib Dems say cutting too soon risks jeopardising recovery. (BBC News -- UK)
Strategies for an Overextended Market Sep 17, 2009
Money markets, Treasury bills and notes are safe investments during deflationary times. 5. (Human Events Online)
Investing for the recovery: Where to place your bets Sep 17, 2009
The Standard & Poor's 500-stock index has soared 54% from its March 9 low ; interest rates have fallen; and the money markets have thawed. "All the predictions were too dire," says Robert Doll, chief investment officer at. (USA Today -- Money)
ELIZABETH KNIGHT Sep 17, 2009
Money markets and equity markets around the world have delivered their verdict on the election of Barack Obama to the office of President of the United States - it was resoundingly positive. Wednesday November 05, 2008. (Sydney Morning Herald -- Business)
Credit Contraction Mirrors Great Depression Sep 16, 2009
The money markets are healing rather rapidly, David Keeble of Calyon told Bloomberg. All the money that has been thrown at us from the central banks is having a profound effect. (Newsmax)
Wall Street One Year Later Sep 15, 2009
"We were dealing with a whole series of crises ... investment banks collapsing, the takeover of [mortgage giants] Fannie Mae and Freddie Mac, money markets freezing up, auto companies collapsing, the AIG problem. "The world had in fact changed," he said. "There were things happening that no one could anticipate and no one knew what the next unintended consequence was going to be. " The Bush administration was faced with a choice between letting major firms like Lehman collapse or rescuing the... (ABC News -- Business)
Money markets recover to early 2008 levels: BIS Sep 14, 2009
The financial markets are showing signs of normalising, with interbank money markets recovering to levels not seen since early 2008, the world's biggest central bank body said Sunday. GENEVA (AFP) - The financial markets are showing signs of normalising, with interbank money markets recovering to levels not seen since early 2008, the world's biggest central bank body said Sunday ... In particular, "in interbank money markets, key spreads narrowed to levels not seen since the beginning of 2008",... (Yahoo! Asia News)
Full coverage Financial crisis: Back from the brink Sep 14, 2009
The financial markets are showing signs of normalising, with interbank money markets recovering to levels not seen since early 2008, the world's biggest central bank body say. --> Topics. (Sydney Morning Herald -- Business)
Money markets stabilising: BIS Sep 14, 2009
Money Markets Recover to Early 2008 levels: BIS ... In interbank money markets, key spreads narrowed to levels not seen since the beginning of 2008, and in some cases even further. (Sydney Morning Herald -- Business)
From rate hike frenzy to maybe this year Sep 11, 2009
You can see why money markets were getting excited. However, that was where the positive news quickly ended. (Sydney Morning Herald -- Business)
London Suicide Connects Lehman Lesson Missed by Hong Kong Hospital Orderly Sep 11, 2009
The U.S. responded within a week to money markets and bank-to-bank. Within a month, Congress agreed to spend $700 billion to prop up banks under the Troubled Asset Relief Program, the guaranteed new bank debt, and Federal Reserve lending to financial institutions ballooned by. (Bloomberg)
How "ice-nine" caused the credit crunch Sep 10, 2009
chairman of the House Capital Markets Subcommittee, recalled that later that week Hank Paulson and Ben Bernanke had warned congressional leaders that a run on the money markets threatened The figures Kanjorski cited never quite added up, but there seems little question that the money market funds were indeed imploding. But the fact that at least one of them, Primary Reserve Fund, owed its misfortune to its decision to bet heavily on commercial paper after the credit crunch had already begun is... (Salon)
Lenders are slow to regain lost confidence Sep 10, 2009
The money markets had broken down, overwhelmed by fear in the wake of the biggest bankruptcy on record. Today confidence is gradually returning to the interbank lending markets, a key source of short-term funding for financial institutions, where the duration of the loans range from overnight to a year. (FT.com -- Markets)
Sleep-At-Night-Money Lost in Lehman Lesson Missed With Bent's $63 Billion Sep 9, 2009
Also that Wednesday Paulson ordered senior adviser to lead a team to devise a plan for stemming the run in the money markets ... After two panics in two years, the SEC has proposed new rules to govern money markets. (Bloomberg)
Money-supply data: Narrow success, broad concerns Sep 9, 2009
First, QE may have been successful in addressing other aspects of the credit crunch, for example by boosting confidence and reducing the high rates being paid in the money markets and on corporate-bond issues. Second, there are likely to be lags between the implementation of the policy and growth in broad money. (The Economist)
Missing Lehman Lesson of Global Shakeout Means Too Big Banks Prone to Fail Sep 8, 2009
One bank CEO, assigned to a group of executives asked by Geithner to consider what would happen in the event of a Lehman bankruptcy, said he couldnt recall any conversations that weekend about commercial paper or money markets. The banker declined to be identified. (Bloomberg -- Germany)
* Why Lehmans couldnt be saved Sep 8, 2009
It was the biggest dealer on the London stock market and a huge player on the Citys money markets. By Friday, Sept. 12, Lehman was in a perilous position. (Taipei Times, Taiwan -- World Business)
Stock rally may be too much too soon: analysts Sep 6, 2009
" However some of these experts argue that the recovery is also evident in the volume of trading. From the summer of 2007 (in the northern hemisphere) to May 2009 investors and small shareholders switched funds from stocks to money markets. Since the end of June, there has been a reversal because interest available on money markets is close to zero. However, the switch back is gradual. "Some people have been traumatised on stock markets, losing up to 50 percent of their savings invested in... (Yahoo News -- Press Releases)
RBI lets bond houses borrow more Sep 5, 2009
They can in return also lend in the call money markets. The move follows RBI allowing PDs to categorise a part of their securities as Held To Maturity, till March 2010. (India Times)
Trichet Says ECB Won't Necessarily Raise Rates When Stimulus Program Ends Sep 5, 2009
One scenario would be that problems in money markets disappear before any upside risks to price stability emerge, ECB Executive Board member said at the same conference today ... If inflation risks emerge before problems in money markets dissipate, the ECB may have to maintain parts of the enhanced credit support while rates are raised, Stark said. (Bloomberg -- Europe)
Beyond the Crisis: Sustainable Growth and a Stable International Monetary System, Speech by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund Sep 4, 2009
Bank liquidity is plentiful, thanks to central bank provisions, and wholesale money markets have reopened. Capital markets are showing renewed signs of life, and are contributing to the recovery of financial institutions. (IMF News)
Government borrowing: More where that came from Sep 3, 2009
5%), banks have been able to borrow cheaply in the short-term money markets and lend to the government at higher interest rates. And under the programme of quantitative easing instituted in March, the central bank has bought 131 billion of gilts, thus helping to keep the price of government debt relatively buoyant. (The Economist)
Europes covered bonds revived Sep 2, 2009
The ECB has also pumped a vast amount of liquidity into the money markets, which has been at the centre of its stimulus drive, most notably the it offered to more than 1,100 banks in June. Tim Skeet, head of covered bond origination at Bank of America Merrill Lynch, says: The ECBs move has so far been a big success. (FT.com -- Markets)
Moron capitalism Sep 2, 2009
The Washington Post recently reported an unintended consequence of the rush from the huge to the gargantuan; the bigger banks, operating under the presumed guarantee of the government, are borrowing cheaper than smaller banks in the money markets - lenders apparently, with very good reason, feel that their loans to institutions that the government will be forced to stand behind are a safer bet than loans to smaller banks and financial institutions that the government might let fail. As a result,... (Asia Times Online)
Bank Credit Shrinks in Europe Sep 1, 2009
In a worrying sign for the continent's economy, credit available to euro zone businesses shrank in July despite rising optimism in EU money markets ... Bank credit to businesses in the eurozone shrank further last month despite current favorable conditions on the money markets, sparking fears over the true state of the economy in Europe. (BusinessWeek)
Uganda: Uganda's Trade Surplus Hits $19m Aug 28, 2009
"The purpose is to create more stability in the short term money markets rates," Stephen Kaboyo told reporters. "The repo instrument will be the principle instrument.". (allAfrica.com)
Volcker Urges Bank-Like Rules for Money Funds to Protect Financial System Aug 25, 2009
The $1 share price has also been labeled the greatest weakness for money funds, and a threat to the wider money markets they serve as lenders. director of the SEC unit that oversees money managers, said in an April speech that the stable $1 share price encourages investors to flee money funds at the first sign of trouble. (Bloomberg -- US)
Zimbabwe: Zimdollar Debate - More Than Simple Economics Aug 23, 2009
However, Zimbabwe could benefit from easier access to the South African capital and money markets and a right to enter into bilateral agreements with South Africa, with the South African Reserve Bank availing temporary central banking facilities. Relevant Links. (allAfrica.com)
TEXT OF BERNANKE'S SPEECH: Reflections on a year of crisis Aug 22, 2009
Nonetheless, market participants reported that the facility's existence helped reassure investors that ample liquidity would be available in case of further disruptions in the money markets. A crucial feature of these lines is that the Federal Reserve's counterparties are the foreign central banks, which are governmental entities, not the private-sector entities to which those central banks might lend in turn. (USA Today -- Money)
Buffett Informs, Schwab Whines on Op-Ed Pages Aug 22, 2009
One broker called a customer who had a big cash balance in the money markets and suggested ARS. Customer: I need the liquidity because, umm, I may buy a house soon. Broker: So why dont you go with something like we call, uhh, the PARS, periodic auction rate securities. (Bloomberg -- Columnists)
Chelsea Building Society Says Bad Loan Provisions Soar on Mortgage Fraud Aug 22, 2009
Fitch Ratings downgraded the debt ratings on five U.K. building societies, including Chelsea, in May citing rising bad loans and difficulties in accessing funding from the wholesale money markets. West Bromwich, Newcastle, Principality and Yorkshire building societies also had their long-term issuer default ratings reduced. (Bloomberg -- UK)
The macabre joke of inflation Aug 21, 2009
On August 4, 1914, just three days after the Reich had declared war on Russia, parliament passed a series of currency acts that would have a fundamental impact on the country's money markets. The new legislation suspended the standard of backing cash with gold "until further notice," claiming that an "exceptional increase in unbacked paper notes" was an "economic necessity" in times of war. (Harper's Magazine)
Integrity deficit has its price Aug 20, 2009
Money creation and financialization of the economy With "financialization" of the economy, money markets have grown beyond the regulated banking system to usurp the otherwise exclusive authority of central banks to control the supply and thus the price of money in relation to demand ... This is particularly true in money markets as finance is infinitely more pliant that physical goods ... Evolution of money markets Until the late 1950s, a currency's money market was based only in the issuing... (Asia Times Online)
Will a market bull be off and running when recession ends? Aug 19, 2009
Cash in money markets is equal to 41% of the current market value of the S&P 500, vs. roughly 19% in October 2007, right before the financial crisis turned nasty. "You can't fund a retirement with 0% returns," Grigoli says. (USA Today -- Money)
Experts see hopeful signs coming down economic tracks Aug 15, 2009
Among those signs are rising volume in short-term money markets and the decline and lowering of spreads in the corporate bond market. There is also growing evidence that financial services companies are starting to stand on their own feet again after a massive government bailout effort. (Daytona Beach News Journal -- Local)
Rush is on to lock in fixed-rate loans Aug 15, 2009
Unfortunately for borrowers, global money markets started betting on a recovery about a month ago, which meant banks such as Commonwealth and Westpac started lifting fixed rates then. ANZ was the latest to raise its fixed rates, lifting its two-year rate by 75 basis points to 6. (Sydney Morning Herald -- Business)
Goldman Toaster Alone Can't Reheat Global Economy: Mark Gilbert Aug 13, 2009
Its two years since money markets froze and jumped higher, as banks started to hoard cash to backfill the holes appearing in their balance sheets. Governments and their treasuries and central banks have channeled trillions of dollars into the financial industry. (Bloomberg -- Columnists)
Credit markets Aug 11, 2009
Have we yet returned to a world that is safer for banks that rely on money markets for funding. You have viewed your allowance of free articles. (FT.com -- Markets)
Paulson, Goldman CEO spoke often in heat of crisis Aug 9, 2009
A Goldman spokesman told the New York Times that Blankfein spoke with the Paulson about Lehman Brothers' troubled London operations and "disarray in the money markets.". At a July 16 congressional hearing, lawmakers angrily asked Paulson to explain changes in U.S. policy during the crisis and said he had conflicts of interest in decisions involving Wall Street firms. (Yahoo News -- Technology)
Capital Gold Group Reports a Rush for 'The Gold Show' Aug 8, 2009
Listeners learn how adding physical gold assets to a portfolio full of traditional dollar-based investments such a stocks, bonds, mutual funds, CDs, and money markets provides that "insurance" they are looking for. With a record-breaking 69 bank failures so far in 2009, and savings accounts and CDs earning barely 1% in annual interest, savers are finding it increasingly difficult to justify rolling over maturing CDs or leaving their cash in a bank account. (Yahoo! Wire -- Entertainment News)
