Financial Risk

China, Thailand, Hong Kong, and the UAE are collaborating to develop mBridge, a multi-CBDC bridge, that promises cross-border settlement in seconds rather than days.

Congratulations to Morgan Stanley on winning the 2023 Silver Alexander Hamilton Award in Risk Management!

The firm envisions the PYUSD, which is pegged to the U.S. dollar, becoming "a part of the overall payments infrastructure."

The benchmark will have its last fixing at around 6:55 a.m. New York time on Friday, and some borrowers and lenders are still scrambling to amend contracts.

In Q4/2022, global FX markets were costly for North American companies, but less so than in Q3/2022.

Economists now expect the federal funds rate to peak at 5.25%, vs. the 5% they expected just last month.

Large Wall Street dealers already stand to lose $5 million to $10 million if the spread between overnight and term SOFR moves against them by just 1 basis point, and their exposure grows with every new transaction.

Minutes from the FOMC's December meeting include an unusually blunt warning to investors, cautioning against underestimating the Fed's will to keep interest rates high for some time.