Bond yields are an even bigger market risk than bitcoin, according to a Wall Street strategist

 Joe Zidle, a portfolio strategist at Richard Bernstein Advisors, believes that investors are going into 2018 assuming that rising bond yields — which move inversely of prices and affect consumer borrowing costs — will stay low. Source: CNBC Forget bitcoin — the biggest risk to stocks next year will actually be the bond market. That’s…

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Post-Crisis Regulations Constrain Bond Activity, Says Federal Reserve

NY Fed findings say reforms including the Dodd-Frank Act and Basel III regulation have constrained banks in their ability to trade corporate bonds, leading to “adverse impact” on bond-level liquidity. Source: Financial Times Regulations designed to safeguard the US from another financial crisis have damped corporate bond trading activity, according to the Federal Reserve Bank of…

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Digitization in FICC Will Benefit All Parties Involved

The FICC market (fixed income, currencies and commodities) is moving towards digitization and automation Source: eFinancialCareers Last month, the U.S. federal reserve raised interest rates for the second time in three months, the first of three rate hikes expected in 2017. While other markets — Japan, Europe and Canada — are maintaining record-low rates, inflation in…

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Why the Refinancing Slowdown Matters for the Fed

The Fed is expected to slow down their purchase of agency mortgage-backed securities thanks to the refinancing slowdown Source: The Wall Street Journal The Federal Reserve has been buying up fewer mortgage bonds in recent months thanks to a flameout of the American refinancing boom, one factor that economists say is likely to help shape Fed…

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Bond Rout Deepens After Fed Signals on Interest Rates

Yield on benchmark 10-year Treasury note hits the highest intraday level since September 2014 Source: The Wall Street Journal The global bond market rout is deepening Thursday after the Federal Reserve’s latest signal about a quicker pace of interest-rate increases next year provided a fresh catalyst for investors to sell government bonds. The selling sent the…

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What the coming interest-rate hike will mean for FICC sales and trading jobs on Wall Street

Fed rate hike may have greatest impact in the high-yield bond market and FICC sales and trading businesses Source: eFinancialCareers You should expect an interest hike in the U.S. before Christmas. Growth is accelerating in the U.S. and it’s unlikely that the Fed will resist calls to increase interest rates before too much longer. What will…

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