Category Archives: Market Structure and Dynamics

Despite rising auto loan delinquencies, ABS backed by these loans have become increasingly popular with investors due to expectations of an improving economy. This is consistent with the broader increase in demand for ABS.   Read...

According to a Federal Reserve Bank of New York report based on consumer surveys, credit rejections rose to 21% this year (from 20.1% in 2023), well above pre-pandemic levels. Rejection rates increased the most for individuals with...

The Wall Street Journal reports that consumer prices in October rose 2.6% year-over-year, a slight increase from September’s 2.4% rate. Core inflation, which excludes food and energy, held steady at 3.3%.  Market reaction was largely positive,...

Reuters writes that a recent survey from the Federal Reserve Bank of New York shows that U.S. consumers have become more optimistic about inflation, the job market, and their ability to manage debt. Household inflation expectations...

According to Reuters, investors are gearing up for potential lower taxes and scaled back banking and crypto regulations under a second term for President-elect Donald Trump. The U.S. dollar, regional bank shares, and Bitcoin are already...

According to the Wall Street Journal, banks are looking to emerging forms of ABS to stay competitive, including the securitization of capital-call and net asset value (NAV) loans. Such changes come against the backdrop of private...

Reuters writes that Wall Street's largest banks reported increased investment banking fees in the Q3, driven by a surge in deals and corporate debt issuance. These reported increases, along with anticipated interest rate cuts from the...

The Wall Street Journal writes that collateralized loan obligations (CLOs) have seen significant issuance growth this year, reaching around $147 billion compared to $87 billion last year. The appeal lies in their higher yields compared to...

Interest rates on repurchase agreements could rise again in December as Treasury market auction settlements increase at the same time bank balance sheets are expected to tighten. Towards the end of the year, the very...

The Federal Reserve is educating market participants about the discount window. While borrowing from the discount window can send negative signals to the market, the central bank is suggesting changes to liquidity regulations that are...

According to the Financial Times, investors expect U.S. banks to report lower net interest income and lower net profit for Q3. However, Fee income derived from investment banking activities is expected to rise.  Read More