First Impressions

Oceans of Data: Ari Rubenstein Talks About the Next Data Challenge and Solution

Regulations are pushing firms to collect, store and organize data in new and complex ways. Ari Rubenstein, co-founder and CEO of Global Trading Systems, said this is creating a glut of data for firms and an opportunity as well. Managing big data in innovative ways, he says, will be the next competitive edge for firms.

Rubenstein’s firm has developed a solution which it believes can efficiently help firms manage and store trading data for regulatory and compliance needs. For him, that will help give firms an advantage over the competition.

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Quote of the Day

“Credit-focused mutual funds have seen massive inflows and have become the largest holders of corporate and foreign bonds. These inflows have created a liquidity illusion, which can amplify shocks and lead to sharper falls in the market.”

José Viñals, the head of the I.M.F.’s financial-markets division in the story, “Fears That Pimco and Other Big Firms Could Be Unable to Unload Risky Bonds”.

Lead Stories

Fears That Pimco and Other Big Firms Could Be Unable to Unload Risky Bonds
Landon Thomas Jr. – Dealbook – NY Times
When it comes to high-risk bonds, the asset management giant Pimco has pretty much cornered the global market.

African Bond Selloff Could Crimp Future Debt Sales
Ben Edwards – MoneyBeat – WSJ
Investors selling off African government bonds this week could deter countries in the region from issuing new debt, analysts and bankers say.

Bank of Japan fails to meet bond-buying goal
Louise Lucas in Tokyo – Financial Times
The Bank of Japan on Friday failed to meet its bond-buying target as investors balked at the liquidity being pumped out as part of efforts to reflate the economy.

Stocks’ Swoon Sends Chill Through Corporate-Debt Market
Katy Burne – WSJ
Corporate-bond investors have struggled this week to find trading partners for some large orders, causing unusual price drops and raising concerns that trading could freeze in future market turmoil.

Volckerized Wall Street Dumping Bonds With Rest of Herd
Lisa Abramowicz – Bloomberg
Corporate bond values are swinging the most in more than a year and here’s one reason why: Wall Street’s biggest banks are following the crowd and selling, too.

A marriage of convenience comes to an end
Tracy Alloway in Los Angeles – Financial Times
Gone Girl has swept the US box office in the past few weeks, no doubt causing spouses around the country to nervously contemplate the state of their marriages. Meanwhile, concerns over economic growth have swept financial markets, causing investors on Wall Street to contemplate the state of their portfolios. There is – spoiler alert – a similarity between the two.

The real disruption at the heart of banking
Izabella Kaminska – Financial Times
The FT’s John Gapper follows up our mythbusting finance 2.0 post with some extremely wise points on what technology land is missing when it comes to “disrupting” banking. The key point being, banks have already been disrupted!

The real reasons why the US Treasury’s debt maturity has been rising
Matthew C Klein – Financial Times
Depending on whom you ask, the lengthening maturity of US government debt is either a smart response to unusually loose financial conditions or an unhelpful countervailing force to Federal Reserve policy.

Central Banks

BOE’s Haldane Shifts Stance
Paul Hannon – WSJ
The Bank of England’s Chief Economist Andrew Haldane said Friday he is “gloomier” about the outlook for the U.K. economy than he was three months ago, and believes the benchmark interest rate can remain “lower, for longer” without pushing the rate of inflation above the Monetary Policy Committee’s 2% target.

Fed Can — and Should — Ignore Markets Right Now
Michael J. Casey – MoneyBeat – WSJ
Once again, investors are pinning hopes on a Federal Reserve rescue – witness the 150-point pop in the Dow Jones Industrial Average earlier Thursday when St. Louis Fed President James Bullard said the Fed should continue bond-buying beyond October.

Bullard: FOMC should consider “a pause on the taper”
Cardiff Garcia – Financial Times
From the transcript of St Louis Fed president James Bullard’s interview with Bloomberg Television:

Structural Reforms Needed in Eurozone to Boost Growth, Says ECB’s Coeuré
Brian Blackstone – WSJ
Governments in the eurozone must reform their economies to take full advantage of policies aimed at boosting demand, European Central Bank executive board member Benoît Coeuré said on Friday.

Twin peaks – Speech By Andy Haldane, Chief Economist Of The Bank Of England


Biggest Banks Tighten Grip on Currency Trading
John Detrixhe – Bloomberg
Foreign-exchange trading is consolidating among the five biggest banks, a trend that may cut the number of competitors in the $5.3 trillion-a-day market, according to Greenwich Associates.

Buy-side becoming dominant player in FX markets – research
John Bakie – The Trade
FX markets are witnessing an explosion in buy-side to buy-side trading activity as banks increasingly enable their clients to directly access the market, according to research from consultancy GreySpark Partners.

BitBeat: Blockchain Ideas Get Play at IMF Panel
MoneyBeat – WSJ
Financial inclusion has become a long overdue buzzword among aid agencies and international economic policymakers of late – and it’s opening the door for bitcoin and blockchain technology to become a part of the discussion among international policymakers.

Indexes & Index Products

Exclusive: Goldman Sachs in talks to acquire ETF provider IndexIQ – sources
Jessica Toonkel – Reuters
Goldman Sachs Group (GS.N) is in discussions to acquire IndexIQ, a Rye Brook, New York-based exchange-traded fund provider, according to three sources familiar with the situation.


Gold Prices Retreat as Stocks Rally
Tatyana Shumsky – WSJ
Gold prices moved lower Friday, yielding to pressure from stronger equities as investors shed the haven asset in favor of riskier fare.
The most actively traded contract, for December delivery, was recently down $7.20, or 0.6%, at $1,234 a troy ounce on the Comex division of the New York Mercantile Exchange.

Switzerland Is Only Country That Would Vote For Bigger Gold Reserves
Kitco News (via Forbes)
If there is one country in the world that would vote yes in a referendum to force its central bank to increase its gold reserves, it would be Switzerland, said one Liechtenstein fund manager.
Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report, said that he is not surprised there is a campaign to increase the country’s gold reserves as the yellow metal has had a long tradition of being linked to the Swiss franc.

With seizures up, Indian gold smuggling loses its shine
Rajendra Jadhav and Meenakshi Sharma – Reuters
Gold smuggling into India, the world’s second-biggest consumer of the precious metal, is becoming more risky for couriers following a surge in seizures and less profitable for the gangs behind the practice.
After being caught off guard by a jump in smuggling on the back of a hike in import duty last year, government agencies have stepped up seizures to the extent that couriers are demanding more money to carry in gold, according to customs intelligence officials and an industry analyst.

Is The Next Giant Gold Field Hiding Under The Great Plains?
Daniel Fisher – Forbes
Most of the world’s greatest mines started as a surface outcrop before turning into a big hole in the ground. Australia’s Deep Exploration Technologies Cooperative Research Centre, backed by miners like BHP Billiton , Barrick and Newcrest, is developing new techniques to find deposits visible only deep underground.

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