Index providers take the lead on Wall Street

Index providers take the lead on Wall Street

Stock market indices such as the CAC 40 or the S&P 500 are emblematic of the financial markets. A few large providers like FTSE Russell and MSCI dominate the industry and have some of the best performance in the financial world. New entrants want to shake up the status quo. Their names have become synonymous with the financial markets: the CAC 40, the S&P 500, the FTSE… The companies which produce these stock market indices…

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American banks rush to the rescue of their money market funds

American banks rush to the rescue of their money market funds

Goldman Sachs and BNY Mellon have bailed out several of their money market funds, a vital cog in short-term financing for large corporations and a source of liquidity for investors. The Fed has launched a support program for the sector. Money market funds, usually one of the most stable segments of the financial sector, are not immune to the pressures affecting the bond markets. These so-called “prime” corporate debt funds recorded outflows of more than…

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The risky debt market capitulates to the coronavirus

The risky debt market capitulates to the coronavirus

As corporate finance costs skyrocket, funds invested in high yield debt face massive outflows which are drying up liquidity in the market. The releases may soon surpass the catastrophic scenario of Esma’s recent stress tests. The high yield bond market is deteriorating at an unprecedented rate. In one month, the interest rate charged to companies with the most fragile financial structure rose from 5% to almost 11% on average in the United States. What seriously…

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The rebound in China sparks wool prices

The rebound in China sparks wool prices

For several weeks, euphoria has returned to the wool market in Australia, the world’s largest producer. The second wave and the restrictive measures in Europe threaten the market with a further collapse in prices. For several weeks, euphoria has returned to the wool market in Australia, the world’s largest producer. According to the Eastern Market Indicator, the benchmark index, the price per kilo has jumped 42% since September to reach 12.19 Australian dollars, or 7.36…

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Euronext publishes higher results in a tense context

Euronext publishes higher results in a tense context

The pan-European operator published quarterly net income up 10.6% for revenues which increased by 12.7%. Stéphane Boujnah, its CEO, spoke about the massive blackout that Euronext experienced on October 19, and the progress of the Borsa Italiana buyout process. A third trimester “Solid” for Euronext. The turnover of the pan-European stock exchange operator increased by 12.7% to 204.8 million euros, driven by post-market activities, and in particular the consolidation of the results of the Danish…

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Management: costs in the sights of the market policeman

Management: costs in the sights of the market policeman

Feedbacks and integrated networks are in the sights of the European financial market regulator. A huge challenge for the sector, as individuals regularly pay twice as much as institutions in management fees. The distribution of savings products to individuals could experience a small revolution in the years to come. The European Securities and Markets Authority (Esma) has opened the door to a total ban on retrocommissions as part of the review of the European MiFID2…

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How money market funds averted disaster

How money market funds averted disaster

Essential links in short-term financing, money market funds found themselves caught between investors’ need for liquidity and the freezing of bond markets. Only the intervention of the ECB made it possible to avoid the debacle. Monetary funds narrowly avoided the industrial accident in mid-March. At the height of the financial crisis, these essential links in the financing of the economy found themselves on the edge of the precipice, faced with the difficulty of selling assets…

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