“Investment banks, which traditionally supported liquidity in times of stress, have been shrinking their activities. Corporate bond inventories have fallen by 75pc in the US and 50pc in Europe since 2007, according to IIF data. While much of this has been driven by banks unwinding large credit books, regulation has also discouraged them from holding large quantities of bonds that could help cushion violent swings in prices. Mr Adams said a ‘dramatic revolution’ of the players and risks of market making had also pushed risk ‘out into the shadows’ of non-bank lending. Mr Adams warned that the US Federal Reserve’s first interest rate rise in almost a decade would also cause disruption.”
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Tip Freedomwat.ch Staff with Bitcoin
Related posts:
Rolls-Royce Lays Bare Entrenched Failings to Stunned Investors
With the end of Fed's QE in sight, U.S. public says 'Huh?'
Epileptic man mistaken for drug abuser beaten by Indianapolis police, lawsuit claims
Four-month deal reached between Greece, creditors
Riveting and Chilling: Victims of IRS Targeting Tell Their Stories on Capitol Hill
Steinway Agrees to Be Bought by Paulson for $512 Million
28 attorneys-general pressure retailers to end tobacco sales
Obamacare could eat up your raise
Bitcoin poker wins online after U.S. shuts cash sites
Seven killed, 261 wounded in Cairo clashes over military coup
Pentagon puts 650,000 workers on unpaid leave due to cuts
Native Hawaiians to Feds: Give Us Back Our Kingdom
Federal Reserve urban warfare training draws eyes to sky over Twin Cities
Central banks last year bought most gold since '64
The People Making Real Money On Bitcoin