Tag Archives | Shadow Banking

“The roots of shadow banking” by Enrico Perotti: placing the blame for market collapse on repo’s safe harbor provisions.

An article published in December 2013 by the Centre for Economic Policy Research “The roots of shadow banking” by Enrico Perotti of the University of Amsterdam, ECB and CEPR grabbed our attention. The author blames repo for the bad lending in the mortgage markets during the financial crisis.

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Things we learned and said at IMN last week (Finadium subscribers only)

IMN held its 20th beneficial owners in securities lending last week in Austin, TX. Finadium chaired the conference and was represented in both individual talks and a panel. Here’s a synopsis of what we heard and what we said.

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Five ways to use or misuse the term “Shadow Banking” (Finadium subscribers only)

Reading the news this morning we were struck by how far Shadow Banking has spread into the popular financial lexicon. We point out five recent observations from the spot-on to the dubious.

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Regulatory pendulum starting to favor liquidity instead of Shadow Banking restrictions

Following the initial reactions of regulators to protect market stability and dial down risk, we are seeing several points suggesting that the tide is turning: maintaining market liquidity is being looked at more kindly than in the last few years. In particular, we note European suggestions that securitization is really alright and that even Shadow […]

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The Fed’s Tarullo: ideas for making SFTs safer

The Federal Reserve’s Daniel Tarullo give a speech last Friday called “Shadow Banking and Risk Regulation,” in which he laid out a few new ideas for regulating securities finance transactions (SFTs) including repo and securities lending. Most of the speech was old news for those of us who follow shadow banking but some of the […]

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Our analysis of the FSB’s securities lending and repo policy framework

It’s not the big bang, but there are a number of important points in the new FSB publication, “Strengthening Oversight and Regulation of Shadow Banking: Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos,” that market practitioners should note.

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Some data on Shadow Banking today (Finadium subscribers only)

We’ve collected some spot data on the size of the Shadow Banking market today, in light of regulators starting to ease up on regulations reducing credit and maturity transformation trades. Here’s what we’ve got:

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The pendulum eases up on Shadow Banking regulation

After years of careful investigation into the dangers of shadow banking, some regulators appear to be concluding now that the benefits of liquidity provided by credit and maturity transformation may outweigh the inherent risks.

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Fears that a Chinese Shadow Banking crash could severely hurt the global economy

While we are new to China’s banking system and its policies, we do know a thing or two about Shadow Banking. That’s why recent articles tying China’s credit boom to Shadow Banking activities have us paying attention. Here’s what recent reports are saying about the matter.

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Hedge fund investment growth picking up from retail and into Shadow Banking

We’ve been thinking lately about hedge fund dynamics, the “other side of the fence,” if you will. Finadium’s next two research reports are surveys of hedge funds on prime brokers, leverage, repo and prime custody, the first of which will be out next week. Today we read an interesting piece from Citi about where new […]

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