Market Recovery Gains Steam – The Wall Street Journal (subscription)
A recovery in global markets gained steam Thursday after concerns about slowing growth in China triggered a rout earlier this week.
Fed’s William Dudley Cools Talk of September Liftoff – Financial Times (subscription)
A senior Federal Reserve official has damped expectations that the US central bank would raise interest rates next month, highlighting how turmoil spreading from China to global financial markets is rattling policymakers.
For Emerging Markets, 2015 Isn’t 1997 – Wall Street Journal (subscription)
Echoes of 1997 exist, but financial crisis is less of a risk today than economic stagnation.
Valuing the Superstar Salesperson – Profit & Loss (subscription)
As a result of a conversation had with a hedge fund manager, P&L’s editor Colin Lambert considers whether recent events will have a lasting impact on the FX sales force. He asks what value they received from their sales relationships at the banks. The answer? Not a lot.
‘Smart’ Derivatives Can Cure XVA Headaches – Risk Magazine (subscription)
Many traders would blame regulation or patchy collateralisation for the pricing add-ons that are making the swap market more complex. In fact, argue Massimo Morini and Robert Sams, the problem is outdated technology and the solution can be found in the world of cryptocurrencies.
Investment Banking: Titans Retreat – Financial Times (subscription)
And then there were two. After years of job cuts and reorganisations, most of the world’s biggest investment banks do very little investment banking today. Of the 10 largest global banks only two – Goldman Sachs and Morgan Stanley – still make most of their revenue from their investment banking operations, compared with six before the global financial crisis.
Traders Hunger for Volatility – Australian Financial Review
Faced with a docile market forex traders have been pushed into exploring new opportunities, such as yuan trading.