WEF-Can We Predict Real Estate Bubbles?
April 5, 2016--The World Economic Forum's Shaping the Future of Real Estate initiative defines real estate asset ecosystems and how real estate bubbles could be limited through innovative solutions
Behavioural decision-making is key to understanding asset price dynamics, asset cycles and the macroeconomic interdependencies. The most destructive cycles are those in which asset price leverage and credits are intertwined, causing the greatest systemic effects. Asset-pricing dynamics impact economies from the local to the global level.
view the WEF Commercial Real Estate Investment Ecosystem
Source: WEF (World Economic Forum)
IMF-Emerging Economies Affect Global Financial Changes
April 4, 2016--Changes in global asset prices increasingly reflect financial developments in emerging economies
Financial integration main force for changes
Policymakers must take into account emerging economies' economic, policy developments
Changes in emerging market asset prices explain over a third of the rise and fall in global equity prices and exchange rates, according to new research from the International Monetary Fund.
The IMF analysis, part of the Global Financial Stability Report, finds that rising financial integration, more than emerging economies' growing share of global GDP and trade, is the key factor behind their increasing financial impact on other countries.
Source: IMF
Insurance Sector Contributes More Risk to Financial System since Crisis
April 4, 2016--Life insurers' role more important in financial system
Insurers more exposed to economy-wide risks
Monitoring common risk exposures key for supervision
Life insurers in major advanced economies have contributed more risk to the financial system as a whole since the global financial crisis, according to new research by the International Monetary Fund.
Insurers are large institutional investors holding over $24 trillion in global assets and longer-term liabilities, and they have become more exposed to swings in asset prices in recent years.
Source: IMF
Giant Leak of Offshore Financial Records Exposes Global Array of Crime and Corruption
Millions of documents show heads of state, criminals and celebrities using secret hideaways in tax havens
April 3, 2016--A massive leak of documents exposes the offshore holdings of 12 current and former world leaders and reveals how associates of Russian President Vladimir Putin secretly shuffled as much as $2 billion through banks and shadow companies.
The leak also provides details of the hidden financial dealings of 128 more politicians and public officials around the world.
Source: ICIJ
Eurex: Trading statistics March 2016
Eurex Exchange: ADV 8.2 million contracts/ISE: ADV 2.3 million contracts
April 1, 2016--In March 2016, the international derivatives markets of Eurex, part of Deutsche Börse Group, recorded an average daily volume of 10.5 million contracts (March 2015: 9.6 million). Of those, 8.2 million were Eurex Exchange contracts (March 2015: 7.3 million), and 2.3 million contracts (March 2015: 2.3 million) were traded at the New York based International Securities Exchange (ISE).
The volume traded on the spot and derivatives power markets of the European Energy Exchange (EEX) amounted to 255.8 terawatt hours.
Source: Eurex
Russell cuts confirm buyside focus on staff numbers
April 1, 2016--Russell Investments is trimming 2% of its global operations team, in a move that follows BlackRock's decision to eliminate 3% of its workforce and confirms a pattern of hiring freezes, internal promotions and staff cuts across the asset management sector.
Source: Financial News
Second report on risk-weighted assets in the banking book published by the Basel Committee
April 1, 2016--The Basel Committee on Banking Supervision has today published a second report on risk-weighted assets (RWAs) in the banking book, as part of its Regulatory Consistency Assessment Programme (RCAP) to ensure full and effective implementation of the Basel III framework.
The study examines the variability of RWA in banks that use internal models to calculate their credit risk regulatory capital requirements. It follows the Committee's 2013 report, which found considerable variation in average RWAs for credit risk in the banking book, and extends that analysis in two respects:
Source: BIS
Wall Street and tech start to move past bitcoin
April 1, 2016--Bitcoin, the revolutionary technological innovation, is becoming old hat.
Even while investors and regulators are paying much more attention (and more money) to the technological architecture underpinning the cryptocurrency, a funny thing is happening: Bitcoin, the very reason for that architecture, is often going completely unmentioned.
Source: cnbc.com
Basel Said to Weigh Change That Could Ease Derivatives Capital
April 1, 2016--New derivatives math would lower burden for some lenders
Regulators may also raise leverage ratio for 30 biggest banks
Global regulators are moving toward a new way of calculating leverage ratios that could ease capital requirements for some banks, especially in the U.S.
Source: Bloomberg
Scientists create synthetic tissues that mimic nerves
April 1, 2016--Combination of 3D printing and chemistry holds out hope for nervous system repair
Oxford university scientists have created synthetic tissues that can be activated by light to mimic biological behavior-including the electrical signalling that takes place in the nervous system.
Source: FT.com