Markets News Regulators 

Houston, we still have a repo problem. Here’s why to expect more volatility.

“As most readers know, the repo market crashed on September 17” writes John Tierney for businessinsider.com. The symposium highlighted issues facing markets, but the big takeaway was to expect more volatility.Over a 30-year career as a sell side analyst, John Tierney covered the structured finance and credit markets before serving as a corporate market strategist. Source: businessinsider.com

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Futures News 

Asia shares tick higher as China cuts repo rate

“MSCI’s broadest index of Asia-Pacific shares outside Japan also moved 0.3% higher” writes Midwest Communications Inc for 95kqds.com. Investors are awaiting the first major speech by European Central Bank President Christine Lagarde due on Friday for clues on future policy.In currency markets, the dollar was little changed against its main peers on Monday and well within recent tight trading ranges.China’s central bank cut rates on seven-day reverse repurchase agreements by five basis points to 2.50%, a move that nudged the yuan higher while lowering Chinese bond yields. Source: 95kqds.com

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Markets News Stocks 

‘It’s a very unusual time’: The stock market just triggered a flurry of under-the-radar signals that have experts worried a painful meltdown could soon strike

“Investors who are thinking ahead about the next episode of market volatility should avoid exchange-traded funds that would profit from a higher VIX, Goepfert said” writes Akin Oyedele for businessinsider.com. Here’s the list, and what each means: Investors’ bets in the options market that stocks will fall are far fewer than their bullish wagers.Meanwhile, another corner of the market shows that some investors are gearing up to profit from higher volatility.Several indicators in the derivatives market show that investors expect the good times to last.However, their positioning unearths two unsavory…

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Markets News 

What implied volatility says about the week ahead

“It was a fascinating week and one where the bond bulls and equity bears are hurting, and more-and-more strategists are advising clients to look at the reflation trade more readily” reports forexlive.com. As, per each Friday I have put a video together looking at the movers and shakers in markets, with a specific focus on G10 FX. I have focused on implied volatility and the expected moves from spot, which reflects how the market sees the event risk for the week ahead.What we’ve seen is less bad economic data, a…

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News Stocks 

I need help to figure out the rate of return on my retirement accounts

“Q: What rate of return can I expect safely on my retirement accounts ($1 million) if I am not risk averse and can accept market ups and downs?” writes Dan Moisand for marketwatch.com. A.: Reducing your assumption at retirement from 8% to 4% suggests you expect to be more conservative once you retire.In eight of those years the return exceeded 15% and the portfolio lost money in four.So 8% and 4% are historically reasonable if you have a high percentage of your money in diversified stocks.No portfolio with a large…

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Crypto Markets News 

Bitcoin Steady Around $9.2K as ‘Volatility Collapse’ Predicts Big Move

“Bitcoin (BTC) continued its downtrend on Nov. 7, barely keeping support above $9,200 as market commentators stay realistic about the future” writes William Suberg for cointelegraph.com. This ‘collapse in volatility’ suggests a much bigger price move is right over the horizon—maybe yet this week,” he summarized on Wednesday. The overall cryptocurrency market cap stands at $250 billion, with Bitcoin’s share equating to 66.8% of the total. Source: cointelegraph.com

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Crypto News 

Ripple CEO: Only 1% of Today’s Cryptocurrencies Will Survive

“As many as 99% of all cryptocurrencies will likely go to zero, according to a new prediction by Ripple CEO Brad Garlinghouse” writes Helen Partz for cointelegraph.com. That small number of crypto projects will be game-changing and grow significantly in the decades since they will be focused on solving real problems for real customers, Ripple CEO declared.According to Garlinghouse, the growing number of digital assets is caused by the hype around the crypto ecosystem.In an interview with Bloomberg released Nov. 5, Garlinghouse claimed that there are too many cryptocurrencies so…

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Crypto News 

Bitcoin Shows Extreme Volatility After $10,600 Spike — Where to Next?

“On Nov. 1, the highly anticipated monthly candle of Bitcoin is set to open at previous monthly candle openings, as the Bitcoin price has tended to record a large spike in value” writes Joseph Young for cointelegraph.com. The Bitcoin price has been showing a high level of volatility following its abrupt increase to $10,600 on Oct. 26, when Bitcoin (BTC) climbed by 43% against the United States dollar on a single day.The daily trading volume of Bitcoin then dropped below $1 billion on Oct. 12, down substantially since June when…

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Markets News 

After Brexit: The GBP market might get a chance to focus on the real economy

“This week’s CBI industrial trends data was softer than expected and we’re now seeing the worst readings since the financial crisis” reports forexlive.com. Sadly though, while the current state of the UK economy is not affecting sterling at the moment, yesterday’s CBI Industrial Trends survey showed orders falling further.Brexit is completely dominating GBP trading and that’s not going to stop any time soon.The best thing that could happen for the currency is a deal in the next few weeks.That’s not only because of the volatility in the currency, but also…

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Markets News 

Warren says big banks may use repo-market volatility to get rid of liquidity rules they despise

“There could be a larger financial crisis if the liquidity measures are not stream-lined and better thought out, Dimon warned” writes Senior Economics Reporter for marketwatch.com. JP Morgan Chase JPM, +1.00%   CEO Jamie Dimon last week did tie the spike in repo-market rates to the post-crisis liquidity requirements.She pressed Mnuchin to report back on what caused the spike in short-term lending rates last month and what the implications mean for the markets.She told Mnuchin that the Financial Stability Oversight Council should not go along with the effort to ease…

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