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This document, titled "TUESDAY'S YIELDS," is from the Bond Buyer journal and was published on August 7, 2024. It provides information on various economic indicators and data related to government securities and municipal bonds. The document includes tables with details such as international trade figures and government securities prices. It also mentions a decrease in the total bond buyer's value and visible supply. The document features graphs displaying Tuesday's yields. [Extracted from the article]

The article discusses the impact of surging escrow balances on mortgage servicing. Property taxes and homeowner insurance costs have increased in many areas, leading to a rise in interest rate risk associated with escrowed funds. The growth in escrows has also raised concerns about how they are affected by interest rates. Consumers have been confused by adjustments to their payments due to higher insurance premiums and property taxes, resulting in complaints. Servicers need to ensure they have enough cash to cover advances, which have become significant due to the high costs of insurance. [Extracted from the article]

Watching with interest: The Secured Overnight Financing Rate has emerged as the leading alternative to the now-defunct Libor interest rate benchmark, and it is the alternative regulators strongly prefer. As the post-Libor world takes shape, there may "eventually be a winner or two that dominate" the loan market like Libor did, said Matthew Tevis, managing partner at Chatham Financial, which advises banks on the issue. BSBY has repeatedly come under fire from Securities and Exchange Commission Chair Gary Gensler, who has said that BSBY has "many of the same flaws as Libor."The latter rate dominated global financial markets despite being based on a small number of bank-to-bank lending estimates and subjective judgment. [Extracted from the article]

For instance, if an investor buys a 5-year TIPS at the Oct. 17 rate and inflation averages 2% over the full five years, the TIPS return would be 3.72% (1.72% at purchase + 2% inflation adjustments). Column With inflation remaining stubbornly high, investors are looking at Treasury Inflation-Protected Securities, or TIPS, once again. TIPS as inflation forecaster TIPS often make the most sense to investors that have a view (or fear) that inflation will remain stubbornly high over the next (however many) years - or to those whose crystal ball is telling them that their view on inflation is more accurate than that of the bond market. [Extracted from the article]

Melhaoui leads a team of 11 and is responsible for overseeing the bank's liquidity and interest rate risk for the U.S, Canada, Mexico, Brazil, Colombia and Argentina. [ABSTRACT FROM AUTHOR]

Large banks, particularly those with over $100 billion in assets, see increasing supervisory shortcomings related to interest rate and liquidity risks, governance and risk control issues, and cite cybersecurity, CRE values, and remote work trends as potential hazards in the future. [ABSTRACT FROM AUTHOR]

The central importance of a derivatives market SOFR's edge so far is partly due to its rapidly growing derivatives market, which lenders and borrowers can use to swap their interest rate risk with that of a counterparty, protecting themselves against rates turning up or down. January 03, 2022 With the lights almost out on the scandal-plagued Libor interest rate, a successor touted by regulators has quickly become the leading benchmark for business loans, outdueling two alternatives that some banks prefer. [Extracted from the article]

The simple act of disclosing their sensitivity to interest rate changes would bring market discipline to the banking industry's choices about interest rate risk. [ABSTRACT FROM AUTHOR]

The Federal Deposit Insurance Corp. acknowledges in a new report that it didn't adequately monitor First Republic Bank's uninsured deposits, interest rate risk sensitivity and rapid growth — and as a result left the bank vulnerable to contagion. [ABSTRACT FROM AUTHOR]

The Federal Deposit Insurance Corp. acknowledges in a new report that it didn't adequately monitor First Republic Bank's uninsured deposits, interest rate risk sensitivity and rapid growth — and as a result left the bank vulnerable to contagion. [ABSTRACT FROM AUTHOR]

The Federal Deposit Insurance Corp. acknowledges in a new report that it didn't adequately monitor First Republic Bank's uninsured deposits, interest rate risk sensitivity and rapid growth — and as a result left the bank vulnerable to contagion. [ABSTRACT FROM AUTHOR]

An interview with Neil Menard, president of private financial investment company CNL Capital is presented. When asked about the future of real estate investment trust (REIT) market, he refers to the strategy and product innovation to take advantage of the opportunity in multifamily housing setup. When asked about impact of low interest rates, he referred to better business on floating rate basis and the impact on employment. He believes in competition, transparency and performance.

The article reports on the concentration of derivative contracts to small number of institutions. According to the U.S. Office of the Comptroller of the Currency (OCC), the five largest commercial banks keep 97% of the total notional amount of derivatives while the biggest 25 banks keep almost 100%. The OCC also states that the primary metric, the net current credit exposure used by OCC to measure credit risk in derivative activities, increases 22% or $57 billion to $309 billion.

The Federal Deposit Insurance Corp. said in its quarterly banking profile that the banking industry remains resilient despite a challenging economic backdrop, but exposure to commercial real estate losses and interest rate risks could make continued stability difficult. [ABSTRACT FROM AUTHOR]

The Federal Deposit Insurance Corp. said in its quarterly banking profile that the banking industry remains resilient despite a challenging economic backdrop, but exposure to commercial real estate losses and interest rate risks could make continued stability difficult. [ABSTRACT FROM AUTHOR]

Speaking before the International Swaps and Derivatives Association's annual meeting, Treasury Undersecretary for Domestic Finance Nellie Liang said liquidity and interest rate risk in the banking sector is being managed, but said fears of risk mounting in the nonbank sector are a source of concern. [ABSTRACT FROM AUTHOR]

Speaking before the International Swaps and Derivatives Association's annual meeting, Treasury Undersecretary for Domestic Finance Nellie Liang said liquidity and interest rate risk in the banking sector is being managed, but said fears of risk mounting in the nonbank sector are a source of concern. [ABSTRACT FROM AUTHOR]

The Federal Reserve flagged multiple "deficiencies" at Du Quoin State Bank in an order that bars the Illinois depository from paying dividends without its regulators' approval. The central bank has identified interest rate risk as a key issue at a time when rising rates have contributed to three bank failures. [ABSTRACT FROM AUTHOR]

The broader interest rate moves have also prompted mutual fund outflows Gastall described as a gradual reaction in terms of the "laggard textbook response" from the retail crowd in a market two-thirds controlled by household investors. Municipal-specific yields, technical market and credit-related indicators are creating an opportunity for income-seeking investors, at least while it lasts, Kozlik said. With higher yields and cheaper ratios not seen since the height of the COVID-19-led sell-off in March 2020, the municipal bond market is currently offering an "exceedingly appealing" fixed-income option for buyers, municipal strategists say. [Extracted from the article]

Travis Hill, the Republican vice chair of the Federal Deposit Insurance Corp., said poor interest rate risk management caused last month's bank failures and denounced calls to reinstate tighter supervisory standards on midsized regional banks. [ABSTRACT FROM AUTHOR]

The banks invested in bonds at a time when rates were low, and their value has since dropped substantially. While there appears to be very little risk that the banks will ever have to realize the losses, an American Banker data analysis raises questions about whether regulators should toughen their monitoring of interest rate risk. [ABSTRACT FROM AUTHOR]

The banks invested in bonds at a time when rates were low, and their value has since dropped substantially. While there appears to be very little risk that the banks will ever have to realize the losses, an American Banker data analysis raises questions about whether regulators should toughen their monitoring of interest rate risk. [ABSTRACT FROM AUTHOR]

A Piper Sandler survey of CEOs found a majority expect to expand their balance sheets this year. They also foresee increases in nonperforming credits, with office loans a key area of weakness, as well as heightened pressure on net interest margins. [ABSTRACT FROM AUTHOR]

While banks appear to be well capitalized, the Fed outlined several areas of potential weakness in its biannual supervision and regulation report. [ABSTRACT FROM AUTHOR]

The article reports on the economic conditions in the U.S. as of June 2008. Oil prices remained high, reaching more than $136 a barrel on June 9, 2008. It is said that the target interest rate this fall increased after a speech by Federal Reserve Board Chairman Ben Bernanke, who said that inflation risk remains high while the risk of a prolonged downturn has diminished. Moreover, prices on the 19-year Treasury note dropped in June 2008.

The article reports on the strategy employed by investment banks to attract new investors to leveraged finance and to secure greater protections through new provisions and covenants in the wake of the ongoing credit market crisis in the U.S. An executive from a large investment bank's leveraged finance division revealed that banks are discouraging deals with longer lag times due to factors such as regulatory approvals. Meanwhile, underwriters of bonds tend to use a standard covenant package.

The article reports that the ninth series of the North American Investment Grade CDX index was welcomed by market participants with high expectations in the addition of better quality and retail-heavy names. It stated that Liz Claiborne and Quest Diagnostics have a higher mean credit risk estimate which is part of the company's BondScore product used for default and relative value prediction. In addition CreditSights expected both indices to make a tighter trade compare to the previous series.

The article discusses the findings of Wachovia Securities LLC collateralized debt obligation (CDO) analysts about the method to project future performance of new-issue CDO using historical data. The risk adjusted return would provide values on how well the securities would fare based on the assumption that their performance is identical to historical averages. However, judging the future behavior of CDO based on past deals can be tricky due to constant structural and collateral changes.

Lists the most frequently mentioned risks that portfolio managers will be hoping to cope in 2004. Interest rate risk; Description of the risk associated with the increasing number of deals rated CCC; Influence of downgrades in outnumbering upgrades which also gives some investors cause for concern.

Municipals were steady to weaker in spots Tuesday, while U.S. Treasuries were mixed and equities ended down. In advance of Fed Chair Jerome Powell's Jackson Hole speech, yields started to rise, with munis lagging in the taxable market, said Jeff MacDonald, head of fixed-income strategies at Fiduciary Trust International. "While UST remains fully committed to curve inversion with greater punctuation, the muni curve has corrected its front-end inversion with a presently tighter flattening bias", Lipton said. [Extracted from the article]

A new and larger finance industry is emerging-- one in which traditional institutions aren't nearly asdominant as they used to be. Big technology companies, as well asfinancial infrastructure and tech companies andvarious others, now account for fully 35% of theindustry's value. A bigtech firm in strategic combination with a giantinternational bank could build banking dominancein all of its nondomestic markets. [Extracted from the article]

Municipals improved Friday after catching a bid in the secondary, finally following U.S. Treasuries in a flight to quality, while still underperforming, keeping valuations above 100% on the 10- and 30-year. For one, he noted, "yields are at or near decade highs, and muni yields are attractive compared to other fixed-income markets.". [Extracted from the article]

The article discusses the stable outlook of Fitch Ratings for structured finance market in the U.S. for 2018. Topics mention including the risk retention and interest rate in the securitization market, rating of asset-backed security (ABS) and performance of commercial mortgage-backed securities (CMBS).

Many of these products, according to Bankrate senior analyst Greg McBride, have benefited from investors aiming to shed risk and navigate choppy markets. "While U.S. Treasurys are free from default risk, they are susceptible to interest rate risk - when rates rise, prices fall", McBride says. McBride added that a highly anticipated short-term rate cut by the Fed would ultimately "generate less interest income over time as newer, lower-yielding bonds come into the funds, and older, higher-yielding bonds mature, or are refinanced". [Extracted from the article]

The article focuses on investment recommendations for retirees as per the famous investor Warren Buffett. Topics discussed include investing 10 % in short term government bonds and 90 % in low cost S&P 500 index funds, types of retirement portfolio models such as seven asset model, 60/40 model and 90/10 model, and factors affecting the investment include rising interest rate, declining performance of American stocks, and need for diversified retirement portfolio.

"Everything seems to have surprised the Fed." The Russia invasion of Ukraine "has muddied the Fed's calculus", he said. This raises the risk of a recession but provides some comfort that the Fed thinks it can control inflation in the relatively near future." "Our read is that the Fed pivoted as hawk-ishly as it could, signaling that it will continue to raise rates until inflation expectations stabilize", he said. [Extracted from the article]

Practitioners want to know what happens to the value of their portfolios if interest rates change. [ABSTRACT FROM AUTHOR]

The article offers information on credit risk transfer and the future of the housing finance system. Topics discussed include impact of financial system on mortgage; activity of the investors in selling the interest rate risk to investors in mortgage-backed securities and before the financial crisis they held on to the credit risk; and success of Fannie Mae and Freddie Mac in pushing credit risk to private investors.

The article reports results from an "American Banker"/Financial Services Executive Forum Survey, which show that more respondents felt financial services companies face problems with trust among their customers. The survey had responses from 332 chairmen, chief executives, managing directors and other in the financial services industry. Information is provided for the industry's hiring trends, interest rate concerns, credit markets and spending on information technology.

The St. Louis-based, multi-state Catholic health system is selling $175 million of taxable paper Tuesday. [ABSTRACT FROM AUTHOR]

KeyCorp in Cleveland said Tuesday that Victor Alexander, its head of mortgage lending, has been promoted to head of consumer banking. In the role, Alexander will oversee retail, consumer lending and deposits, business banking, small business, home lending and wealth management for the $145 billion-asset Key. [Extracted from the article]

Reports developments in financial service industry in the U.S. Selection of Boston-based SunGard's BancWare for asset and liability management and interest rate risk analysis; Endorsement of consultant Mark Lynch by The Michigan Credit Union League to provide a Governance Improvement Program to credit unions; Affiliation of SWBC with PAR North America, a wholly owned subsidiary of ADESA Corp.

Reports how banking scandals involving Enron, Spitzer, and Sarbanes-Oxley have changed banking. How banks have reasonable metrics for credit, market, and interest rate risk; Willingness of banks to settle with regulators; Advantages seen in settlements; Focus on culture as a solution to operational and reputational risks; Compliance as a profession virtually created by government regulations.

Predicts that high-yield corporate bonds could turn out to be immune from the short-term effects of interest volatility. Fixed income investors' concerns regarding the effect of higher interest rates on the bond market; Interest rate policy of the U.S. Federal Reserve Board; Similarity between the situation in 2004 and that in 1994.

Reports on the risk in securitized credit posed by the effect of interest-rate swaps on collateralized debt obligations (CDO) in 2002. Details on high yield cash-flow arbitrage CDO completed between 1997 and 1999; Remarks from Brian Gordon of Fitch Ratings; Reason collateralized loan obligations are not affected by interest-rate swap issue.

The article discusses results of a study by BoindDesk Group which showed that buying individual bonds in the individual market is a cost-effective way of accessing the fixed-income market. It notes that individual bonds will have a full principal return as long as they are held to maturity. A discussion on how to compare the transaction costs of bond funds and individual bonds is provided. It explains the susceptibility of bond funds to interest rate risk.

The article reports on the accomplishments of David Sterns as commissioner at the Federal Housing Administration (FHA). It states that his focus is decreasing credit risk, while ensuring access to financing of FHA. Moreover, it notes that he has kicked out some lenders under the FHA single-family program.

The article focuses on the most efficient mortgage finance system in the U.S. It suggests that the future of the system should include a robust private secondary market for the largest segment of the business. It also argues that the retention of credit risk by mortgage originators should be facilitated by public policy.