Defying the Surveys
Banks and asset managers rushed their first‑quarter earnings releases, revealing a stark contrast between bleak consumer‑confidence surveys and on‑the‑ground business activity. The University of Michigan recorded its lowest sentiment reading ever, even below levels seen during the 2008 crisis, while inflation has cooled but price pressures remain high. Executives such as PNC CEO Bill Demchak argue that daily metrics—spending, savings growth, and loan demand—are largely at odds with the pessimistic survey headlines. This divergence offers a nuanced view of the economy’s health.
Shuffling Risk
In late 1997 JPMorgan introduced the Bistro structure, a synthetic credit‑risk transfer that bundled $9.7 billion of corporate, bond and municipal exposures into a special‑purpose vehicle and sold Ba2 and AAA‑rated notes to investors. By requiring only $700 million of capital –...
NEW POD! How Credit Markets Shaped a Nation with Sarah Quinn
In the latest Net Interest Extra episode, sociologist Sarah Quinn discusses her book *American Bonds*, which argues that credit markets have been a foundational force in shaping the United States. Quinn traces how borrowing practices influenced industrial growth, urbanization, and...
Two Tribes
The article reflects on the historic reversal of power between bond and equity traders, noting how equities eclipsed fixed‑income revenue after the 1994 bond market collapse. It highlights the cultural divide that still separates the two desks, with bond traders...