Musings on Markets

MAY 6, 2022

It is precisely because we have been spoiled by a decade of low and stable inflation that the inflation numbers in 2021 and 2022 came as such a surprise to economists, investors and even the Fed. As treasury rates have risen, markets also seem to have been more wary about risk, and how it is being priced.

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Musings on Markets

JANUARY 20, 2021

With equities, the metric that has been in use the longest is the PE ratio, modified in recent years to the CAPE, where earnings are normalized (by averaging over time) and sometimes adjusted for inflation. Estimation Approaches Why is it so difficult to estimate an equity risk premium?

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Brian DeChesare

JANUARY 4, 2023

Just look at the handy chart the Financial Times put together to see the horrifically bad numbers: In January 2022, everything seemed quite frothy, with mega-deals happening left and right and crypto and equity prices still at high levels. Treasuries: 19% [Up 19%]. Real Estate (Equity Funds + Owned Properties): 15% [Up 5%].

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Musings on Markets

JULY 17, 2023

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year. trillion below their values from the start of 2022.

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Musings on Markets

JULY 13, 2022

lived under full democracy, in 2021, with large differences across regions. Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries.

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Musings on Markets

AUGUST 15, 2023

During 2022, the US treasury did not default, but an investor in a 10-year US treasury bond would have earned a return of -18% on his or her investment, as bond prices dropped. and how much to hold in investments with guaranteed returns over their time horizon (cash, treasury bill and treasury bonds).

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ThomsonReuters

JULY 13, 2021

The Tax Equity and Fiscal Responsibility Act of 1982 and Interest and Dividend Compliance Act of 1983 requires payers to backup withhold tax from certain reportable payments. The Savings for All Vocations Enhancement Act (SAVE) of 2021 is currently under review in the House Committees on Ways and Means and Education and Labor.

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Musings on Markets

JANUARY 17, 2024

Heading into 2023, US equities looked like they were heading into a sea of troubles, with inflation out of control and a recession on the horizon. Breaking equities down by sub-region, and looking across the globe, I computed the change in aggregate market capitalization, by region: While US stocks accounted for about $9.5

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Reynolds Holding

OCTOBER 21, 2024

What GameStop put on display was how much has changed—in technology and business models—since 2005 when we last comprehensively updated our equity market rules. The markets have moved to overwhelmingly trade electronically, with transaction volume in listed equities tripling in the last 17 years. [3] 6] The $55 trillion U.S.

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Chris Mercer

MAY 19, 2023

Was it just the long-term Treasury Securities that everyone has talked about. billion at the end of 2018 to $209 billion at the end of 2021, or at a compound annual growth (CAGR) rate of 55% per year. SVB grew its assets at higher rates and larger dollars in 2020 and 2021. What really happened? What caused SVB to fail?

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Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms.

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Musings on Markets

JANUARY 27, 2021

In my last post , I described the wild ride that the price of risk took in 2020, with equity risk premiums and default spreads initially sky rocketing, as the virus led to global economic shutdowns, and then just as abruptly dropping back to pre-crisis levels over the course of the year. between US large cap and European equities and 0.60

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Musings on Markets

MAY 5, 2023

The Bank Regulators If you are wondering where bank regulators enter the business model, it is worth remembering that banks predate regulators, and for centuries, were self regulated, i.e., were responsible for ensuring that they had enough equity capital to cover unexpected losses.

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Brian DeChesare

MARCH 13, 2023

Banks’ lending activities are constrained by: Regulatory Capital – All banks must maintain a certain amount of common shareholders’ equity to absorb unexpected losses on loans and other assets. These are marked to market value and do affect the bank’s common equity and regulatory capital ratios, such as its CET 1 Ratio. to back them.

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Reynolds Holding

OCTOBER 24, 2022

Again, however, there’s been growing centralization among equity market makers handling retail market orders, as I’ll discuss later. Now, I’d like to discuss how we are looking to apply these tools across the fixed income, equity, and private markets. Equity markets. Next, let me turn to the equity markets. Fixed income.

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Reynolds Holding

DECEMBER 9, 2024

Its why weve embarked on key reforms, including rules to promote central clearing in our $28 trillion Treasury markets. [1] 4] Its why we shortened the settlement cycle for equities, corporate bonds, and municipal bonds to one day. [5] equity market, including narrowing increments for stock quotes down to half a penny. [6]

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Brian DeChesare

JANUARY 3, 2024

and far too little in equities. However, I still outperformed because I made small bets on risky assets that did extremely well and were meaningful percentages of my total assets: I bought Bitcoin for under $1,000 in 2013 and under $10,000 in 2020 and sold it for $30,000 to $50,000 in 2021 – 2022. Treasuries.

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Reynolds Holding

APRIL 26, 2022

Altogether, the fixed income markets represent about half of the capital markets that the SEC oversees, making them just as big as the equity markets. The $23 trillion Treasury marketis the base upon which so much of our capital markets are built. Treasuries are how we, as the U.S.

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Reynolds Holding

APRIL 13, 2023

Consequently, both return on assets and return on equity decreased during the period. First, the bank’s equity capital ratio was 7.39 A more detailed analysis of the bank’s financial statements uncovers that in 2021, when interest rates were very low, the bank invested more in debt securities, which accounted for 60.07

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Reynolds Holding

JULY 31, 2022

These amendments would cause some of the most active participants in our equity and fixed-income markets to be required to register with FINRA. treasury markets. These firms’ September 2021 off-exchange listed equities dollar volume executed was approximately $789 billion, which was approximately 9.8% ENDNOTES. [1]

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Musings on Markets

MAY 24, 2021

As we approach the mid point of 2021, financial markets, for the most part, have had a good year so far. With the addition of inflation-protected treasuries, you now have the ingredients to compute expected inflation rate as the difference between the nominal riskfree rate and a inflation-protected rate of equal maturity.

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Reynolds Holding

APRIL 23, 2023

9] I will take a moment to elaborate on our work regarding equity markets and private funds. [10] This rule proposal would cover all sectors of the securities markets, including equity, fixed-income, and crypto asset securities. [12] Myriad markets and financial products are priced off of treasuries.

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Reynolds Holding

NOVEMBER 14, 2024

Treasury Markets Let me start with the base of our capital markets, the $28 trillion U.S. Treasury markets. [13] 15] As these clearing rules get implemented over the next year and a half, your clients may look to you on how best to participate in Treasury markets that better promote all-to-all trading and competition.

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Musings on Markets

FEBRUARY 15, 2023

As I have argued in all four of my posts, so far, about 2022, it was year when we saw a return to normalcy on many fronts, as treasury rates reverted back to pre-2008 levels, and risk capital discovered that risk has a downside.

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Andrew Stolz

NOVEMBER 21, 2021

Toyota’s revenue breakdown 2021. The repurchase has helped to keep return on equity above its target of 10%. The item “Other” contains the treasury stock. It is deducted from equity when the company buys back its own shares. Operating cash flows were not able to cover investing activities in 2020 and 2021.

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Reynolds Holding

MAY 9, 2022

That’s why I’m so committed to our ongoing projects designed to drive efficiencies in the $23 trillion Treasury market, $28 trillion non-Treasury fixed income market, nearly $50 trillion equity markets, and $18 trillion of assets under management by private funds. [8] 11] We also observed challenges in the Treasury market.

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Reynolds Holding

SEPTEMBER 12, 2023

8] I will take a moment to elaborate on our work in equity markets and private funds. Equity Markets With some 68 million American households investing in the equity markets , [9] these markets are critical to issuers and investors alike. Myriad markets and financial products are priced off of treasuries.

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Reynolds Holding

MAY 18, 2022

In recent years, we’ve seen as much — whether the market events of March 2020, the meme stock-related volatility in early 2021, the speculative crypto markets, the boom of special purpose acquisition companies (SPACs), or the collapse of Archegos Capital Management, which we recently charged with fraud and market manipulation. trillion. [16]

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Reynolds Holding

JUNE 20, 2024

smoothly shortened the settlement cycle for equities, corporate bonds, and municipal securities to one day after the transaction date (T+1). market structure, where Treasuries, options, and mutual funds already largely settle in one day. market structure, where Treasuries, options, and mutual funds already largely settle in one day.

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Reynolds Holding

OCTOBER 23, 2022

On June 21, 2021, the International Monetary Fund (IMF) weighed in on the economic situation in Africa, and the news was not good. Years 2018 2019 2020 2021. 89.59. 90.97.

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Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . They will also benefit from enhanced service offerings including expanded commercial loan and treasury management solutions.". "We First Quarter 2022 Results (All comparisons refer to the fourth quarter of 2021, except as noted). at December 31, 2021. 0.60. . $.

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Reynolds Holding

SEPTEMBER 24, 2024

In fiscal years 2021 through 2024, we will have shed 299,000 usable square feet from the SEC’s real estate footprint. 30] Rules requiring that large hedge fund and private equity fund advisers make current reports on certain events to the Commission were implemented in June 2024. markets (equities, corporate bonds, municipals, etc.)

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Global Finance

MAY 10, 2024

And while Chinese holdings of US Treasuries have declined notably since the pandemic, China’s holdings of agency securities and US corporate equities have picked up of late, though some of this is simply down to valuation increase.” Ryan, Deutsche Bank: China is holding fewer US treasuries and more agency and corporate securities.

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Reynolds Holding

MAY 11, 2022

The security-based swap market comprises also includes single-name and narrow-based equity swaps, some of which are called total return swaps. In March 2021, a month before I was sworn in as SEC Chair, Archegos Capital Management failed. 15, 2021), available at [link]. [10] 34-93230 (October 1, 2021), available at [link].

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Global Finance

MAY 8, 2024

rise in return on equity (ROE) to 14.2%; and gains in tier 1 equity capital and assets of 5% and 4%, respectively. This underscored Hana’s commitment to ESG alignment, the bank having joined the Equator Principles in 2021 and the Net-Zero Banking Alliance in 2022. billion; a 2.3% billion Australian dollars (about $21.2

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Reynolds Holding

MAY 21, 2024

This should make the Final Rule less disruptive for managers of private funds such as private equity, credit, real estate and hedge funds than the 2016 rule, but there are certain important points for managers to focus on. Treasury securities; debt securities issued or guaranteed by a U.S.

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Reynolds Holding

NOVEMBER 13, 2023

9] Remarks by Secretary of the Treasury Janet L. 2021), available at [link] (“In the absence of Congressional action, the agencies recommend that the Council consider steps available to it to address the risks outlined in this report. at 50-51, n.85. 3, 2023), available at [link]. [10] 10] Id. [11] 11] Id. [12]

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