Opinion

The physical and transition climate change risk drivers are likely to generate significant costs and financial losses for banks and the banking system globally. Both banks and bank supervisors need to evaluate banks’ existing risk management policies, processes, and procedures to assess whether banks are sufficiently capitalized and liquid to cope with climate-change related risks. Read more here … [Read more...] about Banks Can Suffer Financial Losses From Physical And Transition Climate-Change Related Risks

In 1980, the level of US corporate bonds outstanding was $468 billion, about 16% equivalent of U.S. Gross Domestic Product. Forty years later, the amount of corporate bonds outstanding has grown by over 2,000% to $10.6 trillion; this is 50% of equivalent of GDP. This level of corporate bond debt is the highest in the history of U.S. companies. Read more here … [Read more...] about U.S. Corporates Continue To Gorge At The Debt Trough

The low interest rate environment in the United States and significant competition amongst banks and other lenders continues to feed into the leveraged loan approval frenzy. $308 billion gross institutional loans were issued the first quarter of this year; this is nearly triple the issuance the last quarter of 2020, $116 billion and significantly above the previous high of $202 billion the first quarter of 2020. Read more here … [Read more...] about Institutional Leveraged Loan Issuance Tripled First Quarter 2021

Addressing climate-change related risks and how they can impact financial institutions is a significant priority in this year’s Group of 20 (G20) presidency. In a letter sent to the G20 Finance Ministers and Central Bank Governors ahead of their April 7 meeting, Financial Stability Board (FSB) Chair Randal Quarles stated that addressing issues related to climate change “is essential to a sustainable recovery from the COVID Event and beyond.” Read more here … [Read more...] about Climate Change Is A Key Priority To The G20 And Financial Stability Board

Sustained economic recovery is not coming to Latin America until government leaders can get COVID under control. However, it is important for investors to focus not only on near-term COVID vaccination and economic challenges. Precisely because Latin America has lagged other emerging market regions in the economic recovery, with good credit and market risks due diligence, investors can find good opportunities in Latin American fixed income, equity, and foreign exchange markets. Read more … [Read more...] about Look For Hidden Investment Gems In The Gloom And Doom About Latin America