Capital Markets News

Do you know? PM’s 5 Jan Announcements > Separation of powers AG-public prosecutor: A bill to separate the roles of Attorney General and Public Prosecutor will be the first tabled in 2026, to strengthen checks and balances and reduce conflicts of interest in prosecutions. Equity Debt Digital assets M&A Malaysia Other markets

Do you know? 2026 surprises > Wild‑card systemic shifts: A “global VaR shock” could break similar AI‑driven risk models simultaneously, forcing synchronised de‑risking and a 2008‑style volatility spike centred in market‑based finance. Alternatively, a rapid G7/G20 wholesale stablecoin/CBDC corridor or a post‑disaster “financial climate treaty” could non‑linearly reprice FX, rates, coastal real estate, cat bonds…

Do you know? 2026 surprises > Tech, AI and market structure: Correlated AI models might misread a signal, causing a flash‑crash‑like event and prompting “AI circuit‑breaker” rules. Tokenised funding/collateral rails could reach meaningful scale, blurring on‑/off‑chain markets. A new wave of app‑based leverage in structured products or social trading might unwind abruptly, transmitting retail excess…

Do you know? 2026 surprises > Geo‑finance and fragmentation: Trade and tech tensions could harden into financial segmentation, with blocs steering issuance and listings to aligned markets, fragmenting liquidity. “De‑Swift‑isation” via regional payment systems and CBDC/wholesale‑token corridors, plus pre‑emptive diversification away from sanctionable assets, could nudge term premia higher in traditional havens and lower in…

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