FX Quarterly for Second Quarter 2017

2017-03-29_14-28-25In this edition we highlight:

Read the full Q2 2017 FX Quarterly.

 

 

Same Story, Different Ending: A Look Ahead

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As we approach the end of the first quarter, there is no doubt that the weak demand environment for equity borrowing which characterized the majority of last year has extended into 2017. Equity loan volumes in March were down 8.5% on the same period in 2016 with average loan fees down even further by 23%.* However, as Keith Haberlin, Head of BBH Global Securities Lending, explains, there are reasons to suggest that the underlying causes of the subdued demand environment thus far in 2017 are different than those in previous years and more temporary in nature.

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Outlook: May You Live in Interesting Times

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As we begin the year, our attention turns to the themes which will likely drive securities lending demand over the coming months. In so many ways, 2016 was a fascinating year in terms of global macroeconomic and political events that both shaped the markets and created significant opportunities for our clients and their securities lending programs.

Our thought is that 2017 will be no different. In this update we provide some insights into the key macroeconomic events that will influence securities lending programs and predict what sectors may be in focus. Common themes across all regions will likely include the impact of rising interest rates in the US, a potential increase in dispersions in the equity markets and the lingering influence of political events on the global markets. Whatever happens, we expect unprecedented levels of uncertainty, which we believe will be an important driver for new trade ideas and new securities lending opportunities.

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FX Quarterly for First Quarter 2017

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In this edition we highlight:

Read the full Q1 2017 FX Quarterly.

All Weighed Down Except for Won

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Dr. Win Thin provides an in-depth profile of several Emerging Market countries, including South Africa, Turkey, Mexico, Brazil, China and South Korea, the latter displaying sound fundamentals and representing the bright spot of the group.

We describe the weight of downgrade risks, murky politics and lower oil prices that other countries in the group are feeling.  

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