Esma warns on CLO ratings, sees conflict-of-interest risks
The European Securities and Markets Authority, Esma, on Thursday issued a warning about practices surrounding Collateralised Loan Obligations (CLOs) in the EU. The supervisory body has found potential conflicts of interest and undue influence in the CLO rating process during the 2017-2021 period.
The Big Three credit rating agencies - Fitch Ratings, Moody’s and S&P - are at the centre of this review.
Mind that Golden Gap!
These days, it is almost impossible not to talk about gold or bitcoin - for me, these two assets are close in what they offer investors. So I do just that. What strikes me most is the extreme divergence that has emerged in a traditionally very strong relationship.
Use of English rises in multilingual Luxembourg
A recent analysis of the 2021 census published on Thursday shows that English has become the third most spoken language in Luxembourg, replacing German. Luxembourgish is experiencing a downturn. A report by Statec, the national statistics agency, reveals that over a quarter of the population, or 25.7 percent, now speak English at home or use it at work or school, an increase from 21 percent in 2011.
Private debt ‘particularly vulnerable,’ says BoE
The Bank of England (BoE) has issued a warning about the risks posed by private credit and leveraged loans to financial stability in an environment of higher interest rates. Private debt, a market where Luxembourg structures play a major international role, looks ‘particularly vulnerable’.
SEC rejection of spot bitcoin ETFs faces challenges
Is the US Spot Bitcoin ETF Hype Overblown? The SEC’s rejection of spot bitcoin ETFs faces legal challenges, raising questions about their potential impact.
AXA: Expectations of rate cuts, price cooling ‘reasonable’
Market expectations of central bank interest rate cuts in 2024 are reasonable, according to Gilles Moëc, the Axa group chief economist and Axa IM head of research, who presented Axa’s outlook for next year in Luxembourg this week. He painted a relatively rosy picture for the US and, to a lesser extent, stagnating Europe, pointing to evidence that inflation is finally under control and that political troubles are not yet certain.
Capital Group | Economic outlook: a mixed picture for global growth in 2024
Under the weight of elevated inflation and high interest rates, the world’s major economies are diverging.
Letting Ireland dominate ETFs is pure madness
On the 4th of September 1996, Luxembourg signed its most recent tax treaty with the United States of America. According to that agreement, Lux-based ETFs pay a 30% withholding tax on income received from US securities, as opposed to the 15% paid by their Irish counterparts.
BlackRock defies market with interest rate forecast for 2024
BlackRock, during the presentation of its 2024 Global Outlook at its New York headquarters, indicated that the Federal Reserve is unlikely to cut interest rates until the second half of next year, a scenario the market currently sees as highly improbable. This divergence in expectations set the stage for the event, titled “Context is Everything”, where the asset manager shared its strategic insights.
CSSF: ‘Frozen accounts not to be seen as material issue’
The fact that financial institutions in Luxembourg have frozen some 86.000 investor accounts should not be regarded as a material issue because the Financial Action Task Force has not issued a recommendation on this topic, a senior official at the Grand Duchy’s financial supervisory body CSSF has said.