Banks' appetite for lending to European leveraged loans is cooling, with participation in syndicates falling to less than 10% from as high as 25% since summer. Aggressive pricing and dealmaking reportedly are making conservative banks uncomfortable, but market participants say investors such as pension funds, insurers, sovereign-wealth funds and high-net-worth individuals are eagerly stepping in.
The Basel Committee on Banking Supervision's latest revisions to the Basel III capital framework have met doubts from bankers, who say the changes do not help them accurately reassess capital requirements and depend excessively on national regulators' calculations. The committee's impact study on the operational-risk framework suggests capital requirements will fall by 30% on average, but independent projections show a wide variety that depends on the bank, ranging from a decrease of 66% to an increase of 222%.
Trade officials from the EU, the US and Japan have agreed to oppose Chinese support for excess industrial capacity and other trade practices that distort the global economy, a source says. A joint statement is expected at a World Trade Organisation ministerial meeting in Argentina.
The Federal Reserve has confirmed it will launch three market benchmarks to replace the US dollar London Interbank Offered Rate. The Secured Overnight Financing Rate, the Triparty General Collateral Rate and the Broad General Collateral Rate will launch during the second quarter.
Most Asian-Pacific stock markets posted losses Tuesday, with traders unimpressed by a record high set by the Dow Jones industrial average. Japan's Nikkei 225 declined 0.3%; Hong Kong's Hang Seng Index lost 0.6%; Australia's S&P/ASX 200 rose 0.3%; China's Shanghai Composite dropped 1.2%; South Korea's Kospi gave up 0.4%; and India's Sensex was down 0.7%.
Cboe Global Markets saw 4,127 bitcoin futures contracts worth more than $75 million trade during the first session, which observers said was better than expected. "Just about all of the participants who had shown us readiness late last week and even into this weekend showed up," said CEO Edward Tilly.
On the whole, global bond markets are steady as a meeting of the Federal Reserve's monetary-policy committee, which is widely expected to nudge interest rates higher, draws near. The pricing of Fed funds futures suggests that traders believe there's a 60% chance the committee will push rates higher again in March.
CME Group and China's Global Big Data Exchange have formed a partnership. The companies will cooperate on integration of commercial data and will develop targeted big data applications.
When negotiations for withdrawal from the EU have finished, Britain wants a trading relationship that's "virtually identical" to its current one as an EU member, said UK International Trade Secretary Liam Fox. He dismissed EU negotiator Michel Barnier's skepticism toward that outcome as part of his negotiating strategy.
US companies posted slightly fewer jobs in October than in September but added more workers, the Labor Department said. As October ended, just under 6 million jobs were available, down from 6.18 million in September, but total hiring was up 4.4% in October compared with September.