Do you know? 2026 surprises > Shadow banking and plumbing: A major shock might originate in NBFIs, i.e. private credit, real‑estate debt funds, or vol sellers, then spill into banks, with FX‑swap markets amplifying USD funding stress and forcing bond selling. Policymakers may normalise targeted flow controls or macro‑prudential gates if early adopters avoid heavy…
Do you know? 2026 surprises > Rates, inflation and liquidity: 2026 could bring a second inflation wave forcing renewed tightening, or sharp disinflation from AI‑driven productivity, both jolting term premia. Divergent central‑bank paths may fuel carry trades and sudden‑stops, while a “hidden‑liquidity” event in FX swaps or bond ETFs triggers volatility via non‑bank de‑leveraging. Equity…
Do you know? Repurchase agreement (repo): Repo markets matter for financial stability because they are a key source of funding liquidity for dealers, money market funds, and hedge funds. Stress or spikes in repo rates can signal a shortage of safe collateral or reserves, and rapidly propagate into broader asset price volatility. Equity Debt Digital…
Do you know? Repurchase agreement (repo): The repo rate, which is effectively the interest rate on these collateralised loans, anchors broader short‑term money‑market rates. When central banks change their standing or auctioned repo rates, they transmit monetary policy into the pricing of interbank loans, commercial paper, and ultimately, bank lending rates. Equity Debt Digital assets…
Do you know? Repurchase agreement (repo): For central banks, repos are a primary tool for injecting or draining reserves. Lending reserves to banks against collateral via repo increases the money supply temporarily, while reverse repos absorb reserves, directly steering the quantity of central bank money in the system. Equity Debt Digital assets M&A Malaysia Other…
Do you know? Repurchase agreement (repo): In practice, repo transactions are operationalised through tri‑party or central‑counterparty platforms. Dealers deliver government bonds or other high‑quality collateral against cash, legal title temporarily shifts, margining manages risk, and overnight trades are routinely rolled day after day. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? Repurchase agreement (repo): A repo is a short‑term, collateralised loan disguised as a sale and later repurchase of securities. The borrower gets cash today, agrees to buy the collateral back later at a slightly higher price, and that price difference is the repo interest. Equity Debt Digital assets M&A Malaysia Other markets
Do you know? US Federal Reserve: The Federal Reserve has its own sworn law‑enforcement service, the Federal Reserve Police, which operates 24/7 in each of the 12 districts to protect Fed facilities, personnel, currency operations, and information infrastructure, with independent command centres and, in some districts, dedicated intelligence analysts. Equity Debt Digital assets M&A Malaysia…
Do you know? US Federal Reserve: Beyond setting policy rates, the Fed quietly provides large amounts of intraday credit—“daylight overdrafts”—to banks through their reserve accounts so payment and settlement systems like Fedwire can function smoothly, subject to caps and risk controls that most end users of the financial system never see. Equity Debt Digital assets…
Do you know? US Federal Reserve: In its early decades, the Fed did not just passively follow the gold standard but actively pioneered open market operations—large‑scale purchases and sales of government securities—as a macroeconomic stabilisation tool, notably in the 1920s when the New York Fed used them aggressively to fight recession and later to lean…