Federal

Mutual funds and safe government bonds: do returns matter?

Retrieved on: 
Thursday, April 25, 2024
ACT, Safe Haven, Research Papers in Economics, Flight, Policy, B.3, ICAPM, RT, Journal of International Economics, Krishnamurti, Business, CIP, International, Observation, P25, Safety, A23, Benchmarking, B.2, FX, Paper, TSD, Environment, Journal of Financial Economics, Bogdanov, Federal, Website, United, A14, Total, The Economic Journal, Eurozone, Face, G11, Quarterly Journal of Economics, Interest rate parity, History, WD, Investment, Liquidity premium, Politics, OLS, Statistics, G15, Caballero, PDF, Classification, ECB, Foreign exchange market, AC, P99, Federal funds, Froot, Lethargy, Social science, Interest, JEL, Bias, Journal, Research, Journal of Economic Literature, The Journal of Finance, E.3, Literature, Federal Reserve, Parity, European Central Bank, AA, Annual Review, Growth, Bank of England, FRED, S&P, Injection, Risk, Elasticity, Government, G12, Finance, BIS, S1, JL, E.1, Money, Depreciation, Asset, Treasury, Federal Reserve Economic Data, A11, A10, R2, Section 4, UMP, A4, Boj, Section 3, Accounting, SJ, Fed, Mutual fund, Lustig, University of Lausanne, Section 2, P75, Foreign-exchange reserves of India, Assets under management, A19, GBP, FE, American Economic Review, A22, E.5, A3, A21, Flight-to-liquidity, Aggregate demand, G23, WT, USD, Autocorrelation, CAD, UIP, Currency, XR, Quarterly Journal, Appendix H, Capital, P95, A6, Zhu, University, B.1, P50, CHF, Transmission, Swings, Estate (law), EUR, Bank for International Settlements, JPY, E.4, Central bank, Multicollinearity, Bank, Fixed effects model, Reproduction, CAP, The Atlanta Jewish Times, VIX, Data, Om, Lobster
Key Points: 

    Recent inflation developments and wage pressures in the euro area and the United States

    Retrieved on: 
    Thursday, April 25, 2024
    Momentum, Federal Reserve Bank, Statistics, Employment, CPI, Growth, Tourism, ECB, Unemployment, Blog, PCE, COVID-19, Common, Coronavirus, Diffusion, Holocene, PCCI, Classification, Tobacco, Food, HICP, Federal Reserve, United, Foodservice, Annual report, GDP, Spelman College, Money, Persistent, Federal, Cryptocurrency

    Core inflation remains elevated overall in both economic areas, due notably to high levels of services inflation.

    Key Points: 
    • Core inflation remains elevated overall in both economic areas, due notably to high levels of services inflation.
    • Labour costs started moderating earlier in the United States, with euro area wage growth peaking later and productivity growth being muted by cyclical and structural factors.

    Luis de Guindos: Interview with Le Monde

    Retrieved on: 
    Tuesday, April 23, 2024
    Reproduction, Uncertainty, Generation, Growth, Le Monde, ECB, Risk, Federal, Frankfurt, Communication, Choking, Economy, GDP, Fed, European Commission, Federal Reserve, Movement, European Central Bank

    Since 2022 rising housing costs have, on average, largely been offset by growth in household income, leading to stable housing cost to household income ratios.

    Key Points: 
    • Since 2022 rising housing costs have, on average, largely been offset by growth in household income, leading to stable housing cost to household income ratios.
    • The housing cost burden has, however, increased slightly for both renter and mortgage households at the upper end of the income distribution.

    Decomposing systemic risk: the roles of contagion and common exposures

    Retrieved on: 
    Tuesday, April 23, 2024
    Tao, CIBC, Tax, RWA, Risk, European Systemic Risk Board, Research Papers in Economics, Contagion, RT, The Big Six, NBC, International, Shock, Observation, Bank of Canada, HTC, European Economic Association, The Washington Post, Great, JPMorgan Chase, Paper, GM, Environment, Political economy, Journal of Financial Economics, COVID-19, Perception, BNS, Website, Silicon, IAT, Cifuentes, Probability, Balance sheet, RAN, Medical classification, Algorithm, Information technology, Quarterly Journal of Economics, LN, Nature, European Journal, Royal Bank of Canada, Technical report, Journal of Political Economy, Equitable Bank, Bankruptcy, RAI, PDF, Private, ECB, Policy, CHS, Supercapacitor, Social science, Journal of Financial Stability, Intelligence (journal), Elsevier, Home, Cambridge University Press, Journal, Springer Science+Business Media, Research, Classification, Regulation, News, EQB, Credit, Literature, AIK, European Central Bank, COVID, SVAR, Section 5, Management science, DRA, M4, VL, National bank, Government, ISSN, BMO, Panel, International Financial Reporting Standards, BIS, FIS, Basel III, Commerce, Scotiabank, C32, Econometric Society, Interbank, Fraud, Section 4, Bank, Schedule, VAR, Section 3, The Journal of Finance, RBC, Volcanic explosivity index, Fire, Wassily Leontief, Financial economics, Metric, Section 2, L14, Central bank, Superintendent, Bank of Montreal, Kronecker, BOC, Lithium, BCBS, Sale, Macroeconomic Dynamics, Christophe, CWB, LBC, NHA, Imperial Bank, Private equity, Quarterly Journal, National Bank of Canada, C51, Canadian Western Bank, Currency crisis, JEL classification codes, Victor Drai, L.1, MFC, Silicon Valley Bank, EB, Laurentian Bank of Canada, Federal, RA1, Series, W0, FEVD, Journal of Econometrics, Aggregate, University, FRB, MB, Financial institution, Element, Health, Book, Angels & Airwaves, Common, OSFI, GFC, Reproduction, K L, Systematic, Housing, G21, Home Capital Group, Communications satellite

    Abstract

    Key Points: 
      • Abstract
        We evaluate the effects of contagion and common exposure on banks? capital through
        a regression design inspired by the structural VAR literature and derived from the balance
        sheet identity.
      • Contagion can occur through direct exposures, fire sales, and market-based
        sentiment, while common exposures result from portfolio overlaps.
      • First, we document that contagion varies in time, with the highest levels
        around the Great Financial Crisis and lowest levels during the pandemic.
      • Our new framework complements
        traditional stress-tests focused on single institutions by providing a holistic view of systemic risk.
      • While existing literature presents various contagion narratives, empirical findings on
        distress propagation - a precursor to defaults - remain scarce.
      • We decompose systemic risk into three elements: contagion, common exposures, and idiosyncratic risk, all derived from banks? balance sheet identities.
      • The contagion factor encompasses both sentiment- and contractual-based elements, common exposures consider systemic
        aspects, while idiosyncratic risk encapsulates unique bank-specific risk sources.
      • Our empirical analysis of the Canadian banking system reveals the dynamic nature of contagion, with elevated levels observed during the Global Financial Crisis.
      • In conclusion, our model offers a comprehensive lens for policy intervention analysis and
        scenario evaluations on contagion and systemic risk in banking.
      • This
        notion of systemic risk implies two key components: first, systematic risks (e.g., risks related
        to common exposures) and second, contagion (i.e., an initially idiosyncratic problem becoming
        more widespread throughout the financial system) (see Caruana, 2010).
      • In this paper, we decompose systemic risk into three components: contagion, common exposures, and idiosyncratic risk.
      • First, we include contagion in three forms: sentiment-based contagion, contractual-based
        contagion, and price-mediated contagion.
      • In this context,
        portfolio overlaps create common exposures, implying that bigger overlaps make systematic
        shocks more systemic.
      • With the COVID-19 pandemic starting
        in 2020, contagion drops to all time lows, potentially related to strong fiscal and monetary
        supports.
      • That is, our
        structural model provides a framework for analyzing the impact of policy interventions and
        scenarios on different levels of contagion and systemic risk in the banking system.
      • This provides a complementary approach to
        seminal papers that took a structural approach to contagion, such as DebtRank Battiston et al.
      • More generally, the literature on networks and systemic risk started with Allen and Gale
        (2001) and Eisenberg and Noe (2001).
      • The matrix is structured as follows:
        1

        In our model, we do not distinguish between interbank liabilities and other types of liabilities.

      • In other words, we can and aim to estimate different degrees
        of contagion per asset class, i.e., potentially distinct parameters ?Ga .
      • For that, we build three major
        metrics to check: average contagion, average common exposure, and average idiosyncratic risk.
      • N i j

        et ,
        Further, we define the (N ?K) common exposure matrix as Commt = [A

        (20)

        et ]diag (?C
        ?L

        such that average common exposure reads,
        average common exposure =

        1 XX
        Commik,t .

      • N i j

        (22)

        20

        ? c ),

        The three metrics?average contagion, average common exposure, and average idiosyncratic risk?provide a comprehensive framework for understanding banking dynamics.

      • Figure 4 depicts the average level of risks per systemic risk channel: contagion risk, common exposure, and idiosyncratic risk.
      • Figure 4: Average levels of contagion (Equation (20)), common exposure (Equation (21)), and idiosyncratic risk
        (Equation (22)).
      • The market-based contagion is the contagion due to
        investors? sentiment, and the network is an estimate FEVD on volatility data.
      • For most of
        the sample, we find that contagion had a bigger impact on the variance than common exposures.

    Isabel Schnabel: The future of inflation (forecast) targeting

    Retrieved on: 
    Thursday, April 18, 2024
    Reproduction, Exercise, Finance, Journal of Economic Perspectives, Calibration, Frankfurt, Empirical evidence, American Economic Association, Great Moderation, Interest, Inflation, Norges Bank, Policy, Bank, The Economic Journal, Speech, Employment, ECB, Risk, University of Chicago Press, Communication, Sveriges Riksbank, Debate, OECD, European Economic Review, Watcher, Economic Policy (journal), Goethe University Frankfurt, Federal Reserve Bank, Depression, Christian Social Union (UK), Climate change, Projection, IPhone, Intelligence, Agriculture, Bias, Journal, Research, Disinflation, Harvard Business School, University, Food, Business cycle, Bank of England, European Central Bank, The, American Economic Journal, Uncertainty, Attention, Finance Secretary (India), Conference, Forecasting, Growth, Rotation, Environment, Reserve Bank, Federal, COVID-19, Washington, D.C., Metal, HICP, Federal Reserve, Working paper, American Economic Review, Cryptocurrency

    Stock market development and familiarity (language and distance) are considered key determinants for home bias.

    Key Points: 
    • Stock market development and familiarity (language and distance) are considered key determinants for home bias.
    • The literature neglects however that investors often invest in foreign funds domiciled in financial centers.

    SMX Announces Partnership with Torchlight AI

    Retrieved on: 
    Tuesday, April 9, 2024
    Intelligence, Partnership, Torchlight, Behavior, SMX, ISR, Elevate, Defense, Federal, Sales

    HERNDON, Va., April 09, 2024 (GLOBE NEWSWIRE) -- SMX® is proud to announce its partnership with Torchlight AI®.

    Key Points: 
    • HERNDON, Va., April 09, 2024 (GLOBE NEWSWIRE) -- SMX® is proud to announce its partnership with Torchlight AI®.
    • Through this partnership, the SMX Elevate ISR℠ platform adds powerful behavioral analytics, anomaly detection, and pattern recognition to its global, commercial ISR capabilities.
    • The partnership of Torchlight AI® with Elevate ISR℠ delivers entirely new capabilities to mission partners.
    • SMX’s partnership with Torchlight AI allows for the ability to leverage the power of the Torchlight AI solution in conjunction with the SMX Elevate ISR℠ offering, in direct support of our clients.

    Council of Federal Home Loan Banks Applauds GAO Report Findings

    Retrieved on: 
    Monday, April 8, 2024
    Deposit insurance, Signature, First Republic Bank, Congress, Federal Reserve Bank, Federal Home Loan Banks, Communication, FDIC, Federal Deposit Insurance Corporation, SVB, Federal, Council, Safety, Federal Housing Finance Agency, Federal Reserve, Silicon Valley Bank, Signature Bank, Bank

    WASHINGTON, April 08, 2024 (GLOBE NEWSWIRE) -- The Council of Federal Home Loan Banks, the public voice of the Federal Home Loan Bank System (FHLBank System), today applauded the findings of a recently published report from the Government Accountability Office (GAO) on the actions of the FHLBanks during the spring 2023 bank failures that disrupted financial markets.

    Key Points: 
    • WASHINGTON, April 08, 2024 (GLOBE NEWSWIRE) -- The Council of Federal Home Loan Banks, the public voice of the Federal Home Loan Bank System (FHLBank System), today applauded the findings of a recently published report from the Government Accountability Office (GAO) on the actions of the FHLBanks during the spring 2023 bank failures that disrupted financial markets.
    • Additional highlights from the GAO report include:
      Federal financial regulators did not identify FHLBank advances as a factor of concern in any of the three banks’ safety and soundness.
    • Starting on March 9, 2023, the FHLBanks and the Federal Reserve Banks of New York and San Francisco made several efforts, in accordance with their policies and procedures, to help the failing banks pledge collateral to obtain liquidity from the Federal Reserve Banks.
    • It is also worth noting that the GAO report affirms that advances provided to the failed banks had a very limited, if any, direct impact on the Deposit Insurance Fund.”

    FuelPositive Welcomes Deputy Minister of Agriculture and Agri-Food Canada to Facility in Waterloo and Announces Non-Brokered Private Placement

    Retrieved on: 
    Thursday, April 4, 2024
    Sustainability, Climate change, Government, Farmer, TSX Venture Exchange, Debt, Offering, University, Biophysical environment, GHG, Chairperson, Research, Mental health, Policy, Anxiety, Ontario Agricultural College, Rural development, Quality of life, Central Statistics Office (India), EEStor, RPP, Fertilizer, Suicide, MCIP, Animal, Federal, School, Agriculture

    "Deputy Minister Beck recently visited our team at our new facility during her visit to the Kitchener-Waterloo region.

    Key Points: 
    • "Deputy Minister Beck recently visited our team at our new facility during her visit to the Kitchener-Waterloo region.
    • Deputy Minister Beck was joined by Alec Nicholls, Director General, Agriculture and Agri-Food Canada, Melissa Reginato, Senior Markets and Trade, Agriculture and Agri-Food Canada and Hadley Carpenter, Regional Director, Agriculture and Agri-Food Canada, who was instrumental in organizing the visit.
    • Our technology embodies the spirit of progress and collaboration and showcases Canada's leadership in pioneering solutions that address pressing global challenges.
    • The governmental visit was a valuable opportunity for the FuelPositive team to engage in meaningful discussions with Deputy Minister Beck.

    Orbit International Reports Consolidated Bookings for the First Quarter 2024 of Approximately $12,700,000

    Retrieved on: 
    Thursday, April 4, 2024
    SPS, Growth, VPX, Binder, OEG, Disclosure, Electronics, News, OPG, AC, Engineering, COTS, Federal

    HAUPPAUGE, N.Y., April 04, 2024 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC Expert Market:ORBT), an electronics manufacturer and software solution provider, today announced that consolidated bookings for the first quarter of 2024 were approximately $12,700,000.

    Key Points: 
    • HAUPPAUGE, N.Y., April 04, 2024 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC Expert Market:ORBT), an electronics manufacturer and software solution provider, today announced that consolidated bookings for the first quarter of 2024 were approximately $12,700,000.
    • Deliveries for these orders have already commenced and are expected to continue through the first quarter of 2026.
    • Bookings for the quarter were attributable to strong bookings from both the Company’s Electronics Group (“OEG”), which include its Simulator Products Solutions LLC (“SPS”) subsidiary, and its Power Group (“OPG”).
    • Mitchell Binder, President and CEO of Orbit International commented, “We are pleased to report a very strong start to the 2024 year with consolidated bookings for the first quarter of approximately $12,700,000.

    NOVAGOLD Reports First Quarter 2024 Financial Results

    Retrieved on: 
    Wednesday, April 3, 2024
    Iron Dog, Learning, ANCSA, Environmental protection, Salmon, Bank statement, Investment, Nature, SCAC, Water quality, K300, Hydrology, Science, Partnership, Alaska Natives, Education, EDGAR, Calista Corporation, TKC, Feasibility study, Social responsibility, Alaska Supreme Court, Supreme court, Safety, Federal, State, Weather, Judiciary of Alaska, Sport, Internet, Sleep, Human, University, Certification, TSX, Work, Cure, Mining, Health, Earthjustice, ADNR, Barrick Gold, Form 10-Q, Gold, Bethel Regional High School, Groundwater, Fishery, Music, Alaska Native corporation

    VANCOUVER, British Columbia, April 03, 2024 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company” (NYSE American, TSX: NG) today released its 2024 first quarter financial results and an update on its Tier One1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Corporation (“Barrick”).

    Key Points: 
    • VANCOUVER, British Columbia, April 03, 2024 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company” (NYSE American, TSX: NG) today released its 2024 first quarter financial results and an update on its Tier One1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Corporation (“Barrick”).
    • Details of the financial results for the quarter ended February 29, 2024, are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on April 3, 2024, that is available on the Company’s website at www.novagold.com, on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
    • During the first quarter of 2024, with the support from the owners and the Donlin Gold LLC Board, numerous important activities were conducted.
    • In the first quarter of 2024, Donlin Gold finalized another Shared Values Statement, bringing the total count to 16.