Risk Quantum/Bank for International Settlements (BIS)
MMFs lengthen portfolio maturity post-Covid – BIS
Average holdings had maturity of 41 days in November
Cleared CDS volumes surged in H1 – BIS
CDX cleared contracts outstanding leapt 35% in H1
Cross-border bank loans fizzled in Q2 as bonds soared – BIS
Outstanding dollar-denominated bonds climbed 4% over Q2
Banks’ cross-border exposures to shadow lenders fell in Q2
Loans and deposit claims reduced most over the quarter
Rates and FX exchange-traded derivatives markets cooled in Q2
Interest rate options and futures turnover halved over three months to end-June
Banks’ cross-border exposures to shadow banks surged in Q1
Liabilities to NBFIs increased three times more than usual over Q1 2020
Global banks’ derivatives assets hit $4.4tn in Q1
Market values leapt 43% over the first three months of the year
Lawmakers have to sort ‘tough legacy’ Libor products – survey
Challenges agreeing contract amendments and lack of term rates for the risk-free alternatives are also barriers to transition
Banks stride towards BCBS 239 implementation
No G-Sib was non-compliant with any key data management principles
Bond embrace may help emerging markets withstand Covid-19
Annual growth rate of debt issued by non-bank borrowers averages 11%
Foreign banks’ EM exposure could spiral as Covid-19 bites – BIS
Activation of credit lines and guarantees could cause exposures to leap 26%
CDX on junk bonds jumped 65% in H1 2019
Notionals to which CCPs were counterparty increased +85%
‘Bad banks’ work best alongside capital injections – BIS
Those banks that did not get external funds struggled to improve even after using asset segregation schemes