News > Capital Markets

Fed Minutes: Cap and Trade
The minutes of the May Federal Open Market Committee (FOMC) meeting, released Wednesday, provided (as expected) more information on the committee’s thinking about how and when to start the policy of normalizing the size of the Federal Reserve’s balance sheet. What was surprising was how much information was provided and how close the committee appears to be on agreeing on
Trump to Germany: Stop Selling Americans Your Awesome Cars
Car aficionados seem to love talking about the superior German engineering that goes into creating superior automobiles, which is why people all over the world dream of owning a Mercedes-Benz or BMW. It turns out that President Trump has noticed this affinity for superior German engineering, and he has a message for Germany: Knock it off. More specifically, the president is verbally slapping
NYSE Could Change Rules to Lure 'Unicorns' Like Spotify
The New York Stock Exchange is looking to change its rules that would allow startups to have publicly traded shares without raising money like a traditional IPO, and without restrictions on when "insiders" would be allowed to sell their shares, the Wall Street Journal reports. The potential rule change - which is being dubbed the "Spotify rule" - is an attempt
Keep Your Eyes on the Credit Markets, Not Washington
With political uncertainty on the rise in D.C., will market volatility spike? Russ discusses why the economy and credit markets matter more. Following a market friendly outcome in the French election and less market friendly political rumblings at home, the locus of political anxiety has shifted from Europe to the United States. However, with the exception of a sharp but
3 Ways Snapchat is Responding to Slow User Growth
After several months of poor daily-active-user figures by Snap Inc (NYSE: SNAP), Evan Spiegel, Snapchat CEO and co-founder, is determined to drive user-engagement. The DAU decline occurred right after Facebook Inc (NASDAQ: FB)'s Instagram Stories launched, and Spiegel has taken notice. Specifically, he highlighted it at the end of the third quarter when he wrote, "There are many factors that
Downgrade Leaves Investors Yawning but China Faces Major Issues
Ratings agency Moody’s China downgrade didn’t much move markets, but the reasons for the downgrade – excessive debt, leverage and a reduction in economic growth forecasts – are what many of the bear cases against the nation’s economy and currency have centered on. While market reaction was muted, the reaction from major investment banks was a touch more reflective but
Despite Promises of Job Growth, Trump's Proposed Budget Actually Hurts Workers
President Trump campaigned on promises of helping the average American worker, but his proposed budget aims to cut benefits for many, including the poor, new grads, and young workers. The new fiscal directive calls for sweeping budget cuts and increases in national security spending–including $1.6 billion to build Trump’s infamous border wall. To pay for it, entitlement programs for poor and working-class
An Idea For When Emerging Markets Rebound
The corruption-induced plunge in Brazilian equities is shaking broader emerging markets exchange-traded funds. As Latin America's largest economy, Brazil is often featured prominently in diversified emerging markets ETFs, meaning even ETFs with exposure to 15 or 20 emerging markets are being punished by slumping Brazilian stocks. Solid Streak For Emerging Markets Still, emerging markets have been solid performers and Brazil's
The Sources, Benefits and Risks of Leverage
SUMMARY Many strategies that seek “enhanced” returns (high single to mid double digit net portfolio returns) need to employ some form of leverage to meet their goals. This could take the form of explicit leverage, either structural or financial, or implicit leverage, meaning volatile underlying cash flows. Understanding the interplay between the type and cost of leverage, and an asset’s
Target is Paying $18.5 Million to Settle Vast Customer Data Breach
Target Corp. agreed on Tuesday to pay $18.5 million to settle an investigation into the the massive breach of customer data in 2013 that compromised the credit or debit card information of more than 40 million customers, the Wall Street Journal reports. The investigation was led by attorney generals in Connecticut and Illinois, resulting in "the largest multistate data breach settlement