The dollar ended the week higher against most major currencies as risk aversion pressured risky assets. European Central Bank President Jean-Claude Trichet stated that the ECB will withdraw emergency cash gradually and tighten the standards under which it accepts newly issued asset-backed securities as collateral from banks for its refinancing…
Tag Archives: banks
Weekly Focus: Squaring Positions
At 0.69% the 2-year US bond yield is only 5bp from the low point during the crisis reached a year ago. 3-Month t-bill rates are again trading around 0%. Mainly two factors are behind this development. First of all, investors and banks are most likely reducing risk towards year-end putting…
Friday Ramble
I noticed a Reuter’s poll today. All the top banks were asked to provide their guess on just how undervalued the Chinese currency – yuan- was against the US dollar. The average guesstimate was about 20%. That’s about 20% lower than my guess would have been, but no matter. What…