Archives for : December 2014

Skadi Limited releases trader funding alert #traderfundingrisk

Nicolas Corry

Nicolas Corry, Managing Director, nicolas.corry@skadilimited.com

On Monday, the Russian Central Bank took bold action, raising interest rates by the most in 16 years. Elsewhere around the Emerging Markets risk premia rose, with a knock on effect to volatility. Interest Rate rises of this kind were witnessed in 1997 and 1998 when Central Banks’ sole objectives were stabilising currencies. What gives us grave concern is that Trader Funding Risk remains, in our eyes, a risk for many banks.

Ammunition for the regulation industry

William Vincent, Senior Consultant, william.vincent@skadilimited.com

The December BIS Quarterly review contains an interesting piece which analyses the performance since 2007 of the three main classes of banks – retail funded, wholesale funded and trading led.

 

Its broad conclusions are: