NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases this month’s edition of The Bank Treasury Newsletter, by Ethan Heisler, Founder and Editor-in-Chief of The Bank Treasury Newsletter and Senior Director at KBRA.
This month’s issue, Bank Treasurers Stare into the Abyss, reports on how bank treasurers are thinking about asset-liability management and what to do in their investment portfolios given the inversion of the yield curve. The inversion of the front-end of the yield curve has allowed cash to flow into repo assets, with the money market funds currently holding over $1.3 trillion in repo at the end of July 2019. The Fixed Income Clearing Corporation (FICC) has expanded its sponsored repo program, which will expand the opportunity to net trades and reduce the capital requirements for sponsoring members. As a result, smaller regional and community banks, as well as midsized asset managers, may have increased access to the repo market to invest short-term funds. A more robust repo market is key to better trading markets, and in the context of improving trading markets, the newsletter reports on a final rule by regulators this month amending the Volcker Rule, that shifts the presumption of proprietary trading from banks to their supervisors.
Related Publications: (available at www.kbra.com)
- The Bank Treasury Newsletter – August 2019
- The Bank Treasury Newsletter Chart Deck – August 2019
- Bank Talk: The After-Show – Bank Plumbing and Sponsored Repos
- Just a Bank Minute – August 2019
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Contacts
Analytical Contacts:
Ethan M. Heisler, CFA
Senior Director, Corporates and Financial Institutions
(646) 731-2364
[email protected]
