2024 Outlook & Considerations for Banking
AFX Advisor Robert Albertson offers his perspective on what lies ahead for the banking sector in 2024. A Weakening Economy Economic consensus had only recently centered on a “soft landing” with no recession and Fed rate cuts as soon as 2024. Both are premature conclusions in my view. Some are now suggesting a recession has […]
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 […]
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 […]
With LIBOR’s Long-Awaited Sunset, the Future of Interest Rate Benchmarking Must Be Defined by Choice
With LIBOR’s Long-Awaited Sunset, the Future of Interest Rate Benchmarking Must Be Defined by Choice By John Shay, CEO, American Financial Exchange As of June 30, 2023, a chapter in financial markets history has come to an end. The London Interbank Offered Rate (LIBOR), once a crucial benchmark for the overnight lending market, has been […]