Surging FHLB Advances Point to Need for a True Reflection of Overnight Lending and Borrowing Costs
The latest data from the Federal Reserve Bank of St. Louis is clear: FHLB advances are back on the rise. After sharp declines caused by the 2008 financial crisis and the COVID-19 pandemic, with a gradual recovery period sandwiched in between, activity in this market has risen sharply over the past year, with Q1 2023 […]
FHLBank System at 100 Report Highlights the Need for a Secure Interbank Lending Marketplace
Earlier this month, the Federal Home Loan Bank (FHLBank) System released “FHLBank System at 100: Focusing on the Future” – a report resulting from its first comprehensive internal review in decades. It contains numerous insights on how FHLBanks can practice good governance and support housing and community development while empowering the regional and local banks […]
The Next Banking Crisis? The Danger of SOFR For Bank Loan Pricing
We have unfortunately experienced three major, yet largely unexpected bank failures this past Spring. Importantly, they were not related to outsize credit losses, nor inadequate capital, which have been the proximate causes of most such calamities in the past. Instead, they were rooted in a gross bank “asset/liability management” (ALM) failure. Surprisingly, I think it […]
A New Market in Unsecured Interbank Funding Steps Up
Euromoney: A new market in unsecured interbank funding steps up See below for excerpts from a recent Euromoney feature. For the full article, see here. The AFX marketplace provides a new venue for US regional and community banks to lend and borrow from each other overnight. It could be the foundation for a new credit-sensitive […]
Industry Veteran Kevin Wolf Joins American Financial Exchange as Chief Financial Officer
CHICAGO, IL, October 23, 2023 – The American Financial Exchange (AFX), a self-regulated exchange that provides banks and financial institutions a marketplace for overnight unsecured interbank lending and borrowing, today announced that Kevin Wolf, an industry veteran with over 20 years of capital markets experience, has joined the company as its new Chief Financial Officer […]
John Shay Shoulders AFX Role With Optimism and Purpose
AFX CEO John Shay recently spoke with John Lothian from John Lothian News (https://johnlothiannews.com/) in the following video interview: John Shay, the CEO of the American Financial Exchange, took on the role after 7RIDGE bought the exchange from AFX Founder and former CEO Dr. Richard Sandor and the other AFX investors. He was interviewed over […]
In the Wake of Libor, New AFX Leadership Turns Attention to Growth
The formal cessation of the Libor benchmark at the end of June was long anticipated by, among others, the American Financial Exchange (AFX), the platform on which funding transactions among its mostly regional-bank membership set the Ameribor rate. Ameribor is designed to be credit-sensitive like Libor while better reflecting banks’ funding costs than does the Secured Overnight […]
The Next Chapter: How AFX’s New Brand Reflects a New, Post-LIBOR Era for the Markets
Q3 has marked a new era in financial markets history. The London Interbank Offered Rate (LIBOR) has at last been sunset, creating a unique opportunity for banks and financial institutions in the overnight lending market to embrace alternative rates that meet their precise needs. While the markets are embarking on a new chapter, so too […]