Germany issued a 10-year bond at a negative interest for the first time on Wednesday, selling more than €4.0 billion with a yield of minus 0.05 percent, the German central bank or Bundesbank said. Why would anyone buy a bond with negative returns when he can just keep cash? Whole central banking is turning senseless. First theory is central banks will buy back their bonds […]

Brexit shock may boost, not hinder, yuan internationalization Brexit could prompt Beijing to hedge its bets and foster more offshore yuan hubs across the EU, analysts said. “Frankfurt, Paris and Zurich are all very active in offshore yuan business,” said Ngan Kim Man, deputy head of treasury at China Everbright Bank’s Hong Kong branch.

In the meantime, we look forward to the next pan-European bank bailout, now that even Germany’s biggest bank has thrown in its support behind the proposal, which means Merkel and Schauble’s resistance will promptly evaporate in the coming days as insolvent banks across Europe once again get rescued by taxpayers, in the process further escalating populist anger at the treatment of banks, leading to more […]

Bank of Japan has reached the practical limit of its government buying programme in terms of its current purchase programme of ¥80tn relative to estimated annual JGB net new issuance of ¥34tn. In this respect, the Japanese central bank has from a potentially monetisation standpoint always defended the integrity of its JGB purchase programme by stressing that it only buys JGBs in the secondary market, […]

no matter which kind of analysis you automate with quant trading, it’s safe to say the old school funds no longer cut it. Machines are outpacing humans day after day, week after week and month after month. After all, how many humans can analyse 50 factors and use quantitative models to exploit economic fundamentals dispersion across multiple countries? fundamental analysis is simple to implement. However, it’s […]