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Money markets us 4 week bill rates rise as dealers long on supply


* U.S. sells 4-week bills at highest interest rate in 4 weeks * Frozen euro zone money markets see tentative thawing By Chris Reese and Ana Nicolaci da Costa ADVISORY - Reuters plans to discontinue its daily report on the money markets in New York as of Oct. 15. Instead we will include coverage of U.S. money markets in our daily reports on U.S. Treasury bonds. Significant developments in money markets will be reported separately by Reuters. For any comments, please write to: william.this site NEW YORK/LONDON, Oct 2 The U.S. Treasury sold four-week bills at the highest interest rate in four weeks on Tuesday as a Federal Reserve stimulus program, nicknamed "Operation Twist," kept dealers flush with shorter-dated debt. Treasury sold $40 billion of four-week bills at a high rate of 0.1 percent, up from 0.055 percent in a similar sale last week and the highest since a four-week bill auction on Sept. 5. Demand for the bills was diminished as dealers remain long shorter-dated debt while the Fed sells its shorter-dated securities and buys longer-dated Treasuries in an effort to lower longer-term borrowing costs like those on mortgages. "Dealer balance sheets are still loaded to the gills with front-end U.S. Treasuries from Operation Twist sales," said Natan Magid, short-term markets strategist at RBS Securities in Stamford, Connecticut. The bid-to-cover ratio in the sale - a measure of demand - was 3.86, the lowest since May 2011. Meanwhile, euro zone money markets have shown tentative signs of recovery in recent weeks along with improving appetite for risk in the region, but even the optimists say the crisis will have to be past before interbank lending is back to normal. Some analysts say a pick-up in volumes in overnight lending, a fall in the amount banks borrow from the European Central Bank and debt issuance by Spanish banks are indicative of a thawing of money markets, but traders say the interbank markets remain frozen. A sharp narrowing of the gap between three-month interbank lending rates and overnight rates to pre-U.S. crisis levels further shows the start of some return to normality, they say. "(The spread) is trading at very tight levels. That is the best indicator that the stress in the interbank market is coming down," Alessandro Giansanti, rates strategist at ING in Amsterdam, said. The difference between three-month Euribor and overnight Eonia rates - a key measure of counterparty risk - last week fell to 11 basis points, its lowest since mid-2007, and was trading around that level on Tuesday. Appetite for riskier assets has increased since late July when ECB President Mario Draghi first hinted at a plan to buy sovereign bonds, saying the central bank would do what was necessary to preserve the euro. The change in sentiment as well as technical factors have helped to narrow the Euribor/OIS spread. The deposit rate - which serves as a floor to the overnight lending rate - was cut to zero on July 5. Euribor rates have continued to trend down since then on expectations of further monetary easing. Traders say, however, that the reduction in funding risk has so far not translated into greater lending between banks.

Rpt fitch updates global structured finance rating criteria; no rating imp


(Repeat for additional subscribers)May 20 (The following statement was released by the rating agency)Fitch Ratings has updated its global criteria for rating structured finance (SF) transactions. The changes to the report will not have any rating impact on existing SF transactions.

The criteria describe Fitch's overarching approach to analysing SF transactions and identify the key considerations when assigning a SF rating. These include asset isolation and legal structure, asset quality, credit enhancement, financial structure and originator and servicer quality. The report also describes the agency's expectations regarding bankruptcy remote special purpose vehicles which are used in SF transactions. In this update, Fitch has included a description of the additional risks presented by transactions with revolving periods together with potential structural mitigants. In instances where the revolving period poses excessive risk, Fitch may decline to rate or cap the maximum achievable rating for the transaction.

The report has also been expanded to include a section on the agency's analytical approach when reviewing representations and warranties which are given by key parties to a transaction. It also identifies instances where the robustness of the representations and warranties may be subject to additional scrutiny. Other minor text updates have also been included.

The principles discussed in the criteria are applicable to all asset classes including residential and commercial mortgage-backed securities, asset-backed securities and structured credit transactions. The criteria provide an overarching framework applicable to all SF transactions which is complemented by asset class-specific and cross-sector rating criteria. The updated criteria report replaces the report of the same name dated 24 May 2013. var $relatedItems = $('lia "/article/norway-housing-idUSL5N1EU1V8"UPDATE 1-Norway\'s housing inflation at nine-year high in December/a/lilia "/article/idUSFWN1EU0JJ"BRIEF-Sesac says it will be acquired by Blackstone/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Financials Saudi's Riyad Bank recommends lower cash dividend for H2 2016 DUBAI, Jan 4 The board of Riyad Bank has proposed paying a cash dividend of 0.30 riyals ($0.08) per share for the second half of 2016, Saudi Arabia's fourth-largest lender by assets said on Wednesday. BRIEF-CME Group reached record average daily volume of 15.6 mln contracts in 2016 * Cme group reached record average daily volume of 15.6 million contracts in 2016, up 12 percent from 2015 Dubai Islamic Bank requests proposals for dollar sukuk - sources DUBAI, Jan 4 Dubai Islamic Bank (DIB) has asked banks to submit proposals to arrange a potential U.S. dollar-denominated sukuk issue, sources familiar with the situation said on Wednesday. MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push

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