United States (US)
JP Morgan hoovers up $1.5bn of client margin in Q1
Total required client margin held by bank increases 13% quarter-on-quarter
Start-up uses AI to zero in on US property deals
Team including former cyber intelligence agents builds model to target real estate transactions
Citi’s credit risk measures diverge
Standardised RWAs rise; modelled RWAs fall in Q1 2019
SEC may allow wider cross-margining of single-name CDS
Banks want to cross-margin single-name CDS against options, indexes and cash products
US branches of foreign banks shed $91 billion of reserves in 2018
Drop-off coincides with Fed’s ‘normalisation’ strategy
SA-CCR may need more fundamental fixes
Quants propose tweaks to improve Basel counterparty credit risk framework
No-deal Brexit could force European swaps trading to US venues
Lack of equivalence between UK and EU regimes would create “conflicting obligations” for large dealers
LCR surges at UBS as HQLA billows higher
Ratio of liquid assets to stressed cash outflows hits 154%
Meet Simon, Luma and Halo (they trade structured products)
Shiny new platforms want to introduce structured products to an unsuspecting US public
US G-Sibs build capital even as shareholder windfalls surge
The eight large US banks return more than $30 billion to equity holders
Custody assets rebound after Q4 equity rout
Total Auca at three leading custodians hits $91.9 trillion at end-March, up 4.5% quarter-on-quarter
Life’s a breach: banks settle uncomfortably into GDPR
A year into exacting data privacy regulation, ramifications are becoming more tangible
Custodians eye leverage savings of more than $200bn via new SLR
Central bank deposit carve-out won’t change holdcos’ capital requirements
Shadow banks gobble up cross–border loans
Traditional lenders' claims on non-bank financial institutions increased 8% at year-end
US Bancorp takes axe to toxic loans
Non-performing assets fall 17% year-on-year
New SLR could cut $63bn off BNY Mellon’s leverage exposure
Proposed rule change would exempt central bank reserves from SLR denominator
US swaps end-users cry foul over SA-CCR punch
Capital on non-margined trades jumps 90%, and energy firms face double hit
Bank of America takes $84 million hit from toxic energy loan
Commercial loan charge-offs soar to $156 million because of troubled utility client
SOFR swap surge points to Q2 repo hedging
Strategists say 27 swaps traded last week with July 3 expiries likely to be quarter-end US repo rate hedges
Citi raises CECL reserves estimate
A 30% jump in reserves would translate to a roughly 30bp capital hit
Consumer loan surge quintuples Goldman’s loan-loss reserves
Retail loan portfolio doubles year-on-year to $5 billion
Foreign banks stockpile HQLA in US branches
Median FBO has 48% of total HQLA in branches, but only 31% of total assets
Asset-backed securities swell Wells Fargo's revenues
Non-agency RMBS sales power $125 million of net gains on debt securities
Fixed income risk surges 19% at JP Morgan
Fixed income markets revenues came in 18% lower year-on-year