#TLAC – Page 5 – Federal Financial Analytics

Daily121321

FSB Assesses Bail-in Bonds
The FSB today issued an assessment of cross-border TLAC at GSIBs, setting no new global policy. Instead, the paper analyzes TLAC in individual jurisdictions and studies the extent to which bail-in bonds – a controversial capital buffer – may prove effective under stress.

BIS: PE, VC May Pose Systemic Risk
With nonbank lending now growing faster than that at banks, we turn to another BIS policy-making paper. Joining those on DeFi and open-end funds, this one concludes that the shift of financial intermediation to “private capital” may pose systemic risk due to portfolio correlations at yield-chasing institutional investors such as pension funds and life insurers.

Daily121321.pdf…

Daily120221

Arezou Rafikian2023-05-23T13:56:33-04:00December 2nd, 2021|2- Daily Briefing|

Fed Staff Assess Big-Bank Correlated Risk, Systemic Hazard
A new research note from the Federal Reserve looks at a critical question: how correlated have bank exposures become in the wake of stress testing and other rules many analysts, ourselves included, anticipated. To the extent exposures are correlated, systemic risk is likely to increase, especially if correlations are tightest at the biggest banks and/or correlated exposures are risky.

Quarles Defines Boundaries of Fed Emergency, Regulatory, Supervisory Policy and Politics
In parting remarks today, FRB Gov. Quarles not only defended his record, but also took a very different stand on future emergency facilities than another departing Fed official, Vice Chair Clarida. Unlike Mr. Clarida’s stout defense of 2008 and 2020 actions, Mr. Quarles argues that the credit facilities established in concert with those for emergency liquidity are problematic both in terms of central-bank mission and facility execution.

Daily12021.pdf…