Where is the next Silicon Valley Bank?
Interest rates are shooting up and in some cases have reached the highest levels in decades. The share prices of US regional banks are collapsing again. And yet reports of new collapsing banks remain absent. Why?
Deposits!
The chart below provides the answer to that question. Despite continued competition with money market funds, deposits of smaller US banks are steadily increasing. Compared to a year ago, there has been a modest growth of 2 per cent.
Ten old and ten new safe havens
US 10-year yields have risen above 5 per cent. As a result, earnings yield - the inverse of the P/E ratio - has fallen below bond yields for the first time this century. With that, equities look vulnerable. The days of TINA are over for good, there is an alternative again and that is bonds.
I do not regret that my crypto investments lost money
It was 2020, and there were countless stories of young investors becoming millionaires overnight by investing in cryptocurrencies like Bitcoin. I didn’t want to miss out, so I decided to invest a modest amount of 2500 euros.
Curiosity
The possibility of becoming a millionaire was enticing, but I also saw this as a way to educate myself about a ‘new’ concept called blockchain. This technology was the foundation of cryptocurrencies and was set to transform countless industries.
Luxembourg Sicavs eligible for Belgian tax treaty
What for decades proved a disadvantage for the Luxembourg fund industry is now quietly becoming an advantage: Luxembourg investment companies can invoke the double taxation treaty with Belgium.
Yield curve points to US labour market storm
The chart making waves on social media isn’t getting attention without reason. It suggests that the real turmoil in the US labour market kicks in only after the yield curve has been inverted for over a year. Investors might be celebrating a soft landing prematurely.
Possible turning point for the world economy
In 1973, during Yom Kippur, Israel found itself under siege from countries including Syria, Egypt, Morocco, Iraq, Algeria, Kuwait, and Saudi Arabia. This conflict led to the first oil crisis, causing oil prices to triple in a short span, marking a significant shift in Western economic growth post-World War II.
Manufacturing prices signal potential inflation shift
Thursday’s ADP employment growth figure modestly stood out with a meagre addition of 89,000, but the real stunner last week was the ISM Manufacturing Prices Paid Index. Contrary to expectations and amidst surging energy prices, it plummeted last month to a level of 43.8, nearly five points lower than the previous month.
In my burnout experience, no fault lay with my employer
Urban Angehrn, the former chief executive of the Swiss financial regulator, FINMA, recently stepped down, citing the toll on his health from “permanent stress levels,” months after orchestrating the rescue of Credit Suisse by UBS. However, it is not only people in high-profile jobs who experience burnout.
A few years ago, a younger version of myself also experienced burnout.
Private debt solutions: tailor-made or one-size-fits-all?
In a rapidly shifting economic landscape, leverage presents a distinct challenge. The private debt market emerges as a beacon of adaptability, with expertise and tailored solutions becoming crucial determinants of success, writes Yvonne Narin, senior manager risk controlling at Universal Investment Luxembourg.
In Flux: The intrinsic power of whistleblowing
Mention “whistleblower” in Luxembourg and shivers still course through the Grand Duchy, even though nearly a decade has elapsed since the 2014 LuxLeaks scandal. The government, consultancy firms, and segments of the financial sector remain skittish when foreign journalists approach them with questions.