The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

In awe of Ken Moelis

There is a whiff of hysteria haunting markets. Many of the big players have found themselves wrong-footed. The sands are shifting, and it’s difficult to know who or what to trust.

Some of the brightest investors I know are stubbornly long the US dollar and have been selling the euro, in vain. Five and a half years after Lehman Brothers went bankrupt, the Federal Reserve is still keeping interest rates at emergency levels. It seems new Fed chairman Janet Yellen is not inclined to raise rates soon.

The world is awash with liquidity. Most intelligent investors recognize this, but are too frightened to step away. A senior executive at one of the biggest European insurance groups confessed to me that the firm had €40 billion of cash to invest this year. “The problem is,” the mole sighed, “we have to make a return for our policyholders. Therefore we cannot be out of the market. I’m telling my guys to buy Spanish and Portuguese government bonds. But heaven help us if there’s a reversal and we have to start selling into a falling market.”

The mole could be on to something. Actions that were intended to make the world a safer place might in fact be having the opposite effect. Basel III capital provisions and the Volcker Rule both discourage banks from trading for their own account.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree