Macaskill on Markets
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Sideways: Credit Suisse shouldn’t stop at a three-way split
From Spacs and securitized products to executive compensation and supply-chain planning, Credit Suisse could split its investment bank into more than three parts. -
If Britain waives the rules, US banks could benefit
Removing UK bonus caps and undermining the BoE could exacerbate a sterling crisis while entrenching US IB dominance. -
Junior Wall Streeters aren’t paying attention
Wall Street’s junior human capital resources may not appreciate that there is now a bear market for their output, and that could spell tough times ahead.
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A US climate bill filled with green credits will create business for banks and provide relief from the backlash against ESG products.
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West Virginia state treasurer Riley Moore has opened another front in a campaign by Republican officials in the US against banks that promote ESG policies.
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HSBC Asset Management’s head of responsible investing has had it up to here with consultants and regulators lecturing him on climate change risk.
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Bank shares have failed to close a valuation gap with fintech competitors despite the prospect of higher interest income from rate hikes. Will the Fed’s newly tough stance on inflation-busting finally give bank stocks some respect?
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If Rishi Sunak prevails in the race to be the UK’s prime minister, then Goldman Sachs will still have one alumnus as head of a leading European economy, even if Mario Draghi steps down from leading Italy.
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Trading divisions at banks aren’t just offsetting slumping deal fees, they are also becoming more efficient. They could drive an upgrade in equity valuations.
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The head of crypto firm Galaxy Digital should get creative about his tattoo of failed token Luna.
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The current market slump gives banks a chance to repel competitors such as crypto firms and fintech lenders.
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The US government’s case against Archegos Capital sets up a contest to guess which of the fund’s prime brokers was the most gullible at any given time. To keep the game interesting, the answer might not always be Credit Suisse.
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Elon Musk’s $44 billion Twitter deal could see his bankers shift from cordial competition for fees to a desperate battle to avoid margin losses if the value of his Tesla holdings falls sharply.
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It looks like Chelsea bid heartbreak for the structuring team at asset manager Centricus, but football financing is a funny old game and it’s never over until the final whistle blows.
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Margin hikes are raising the table stakes in markets from commodities to stock loans. Margins may be a better risk signal than curiously subdued measures like the ViX index of equity volatility.
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Russians could try to use cryptocurrencies to dodge sanctions following the invasion of Ukraine, but a move into the mainstream by crypto exchange heads hungry for fiat currency wealth will complicate evasion tactics.
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Energy price volatility driven by war in Ukraine could deliver a windfall to banks such as Goldman Sachs that retain scale in commodity trading. Profits from dealing can also be made without triggering ESG or sanctions-related pain.
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Wage inflation leads to substantial cost increases at major Wall Street banks.
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The trend continues for ever more dramatic accusations in US legal filings.
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Asset managers are following the well-trodden route of bankers in shifting from finance to politics.
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Euromoney’s Mystic Maca has looked into the future and it’s all about getting things back to the way they were.
