Show me the Case for AI in Capital Markets

Capital markets are poised to be transformed by artificial intelligence (AI). Most firms have focused on using technologies to reduce costs, but AI has the potential to create value across organizations in new transformative ways. Source: Accenture Ours is an industry that has shown a willingness and ability to capitalize on emerging ideas, using them to differentiate…

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RBC Prepares to Blaze Trail With New Bail-In Eligible Bonds

RBC building

The Royal Bank of Canada will be the first Canadian financial institution to sell bail-in eligible securities. The bail-in eligible securities can be converted into equity should a bank get into trouble and will eventually replace deposit notes for Canadian banks. Source: Bloomberg Royal Bank of Canada is getting ready to sell the country’s first…

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The Best Investments in Case of an Inverted Yield Curve

The yield curve has fallen to its flattest level since the 2007-09 recession which can cause bond-market investors to take notice and start bracing for a possible inversion. Traditionally safe assets like long- and short-term bonds have fared a bit better following yield-curve inversions. Source: Wall Street Journal The yield curve—the difference between the interest…

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Apple, Oracle Dump Bonds and Create $300 Billion Hole in Market

As U.S. tax cuts prompt Apple Inc. and other tech companies to bring home their overseas cash hoards, it’s leaving a void in the market for short-term corporate bonds, where those firms had invested much of the money. That’s now making it more expensive for other companies to borrow. Source: Bloomberg   Once the biggest buyers of short-dated corporate…

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UBS trials Netflix-style algorithms for trading suggestions

UBS is beginning a trial program to apply algorithmic recommendations to suggest trades for its different asset classes. This initiative is beginning with trials to their corporate bond trading business with the hopes of providing suggestions similar to television shows and music recommendations hosted by consumer tech companies. Source: Financial Times   Picking an investment…

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World Bank Canadian Dollar Benchmark Bond Highlights Benefits of Investing in Women and Young People

The World Bank raised CAD 1 billion from institutional investors for its Sustainable Development Bond. This Sustainable Development Bond format helps the World Bank achieve its Sustainable Development Goals while gaining costs effective funding. Source: World Bank The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) launched a Sustainable Development Bond to…

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