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How to Use Swaps to Hedge Interest Rate and Inflation Risk in Muni Bond Portfolios

For investors looking to diversify their portfolios with potentially lower risk, municipal (muni) bonds are becoming an increasingly attractive investment option. In this blog, we explain how muni bond investors can use swaps to hedge their exposure to interest rate fluctuations and inflation expectations, which have been the main drivers of muni bond market performance in 2024. We also show how

Industry representative: Basel III will reduce ROE of banks in Philippines

Lorenzo Tan, president of the Bankers Association of the Philippines, stated at a recent industry event that the financial performance of lenders in the nation will likely be hampered in 2014 as a result of implementing the Basel III requirements. "Generally, Basel III will lower your expected net income … (the impact) varies from bank to bank," Tan told members of the media who were present at

October 30, 2013

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Barnier: Uncertain U.S. derivatives regulations hindering free trade agreement

Michel Barnier, a key European official who has supervision over financial regulation, recently stated that the inability of the United States to create derivatives regulations that are similar to those of the European Union is holding up a trading agreement between the two jurisdictions. Barnier indicated that he might be able to create an agreement with Gary Gensler, who currently serves as

October 30, 2013

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New venture provides small banks with fixed-income derivatives

At a time when many small banks could potentially benefit from greater access to methods that might help them manage the risk that they will be affected by increases in interest rates, one firm has stepped up and started providing these lending institutions with OTC derivatives. B&F Capital Markets is a company that has developed these off-exchange financial instruments for various small lenders

October 29, 2013

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Panel discusses trends in hedge fund competitiveness and compliance

FINCAD organized two interesting events in New York City yesterday, covering two hot-button areas of finance for hedge funds and banks. In the morning, we co-hosted a breakfast briefing for hedge funds at the Princeton - Columbia University Club. The panel included representatives of software providers, consultants and advisory firms. Audience representation included technology providers, fund

October 9, 2013

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FSB Illuminates "Shadow Banks"

Last month’s G20 summit in Russia resulted, among other things, in a new set of global rules endorsed by the Financial Stability Board (FSB). The new regulation applies to shadow banks, a $60 trillion industry that has now been given until 2015 to fully comply with its first set of global rules. The regulation was prompted due to the risky nature of shadow banking which resulted in mainstream

October 4, 2013

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