Financial Risk

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.

Only the Japanese yen has proved stronger than the greenback among G-10 currencies so far this year, with the Norwegian krone, euro, and Swiss franc falling sharply.

Congratulations to Bristol Myers Squibb and Medtronic!