Cross River Intelligence Archives

Greetings, The Fed raised interest rates by 25 bps, as expected, and indicated that they were on track to raise rates twice more in 2018. Chairman Powell said that the improving economy might necessitate a steeper path of rates hikes in 2019 and 2020. We have seen the 10-year treasury yield settle in around 2.85% but 3-month LIBOR has increased by almost 60 bps in 2018 putting pressure on short ...

Greetings, Amazon continued its foray into the lending sector this week by offering a small business credit card, building on its success financing merchants with over $3 Bn in lending, Bloomberg reports. Amazon’s actions indicate broader ambitions to own the consumer’s financial relationship via lending, non-bank mortgage origination, credit cards, a co-branded deposit account, and ...

Greetings, On Friday, the Fed released its nonfarm payroll report with exceptional results. Nonfarm payrolls rose by 313,000 in February, a considerable surprise to the upside, and unemployment stayed at 4.1%, its lowest rate since December 2000. The markets rallied on the back of the news, with the Nasdaq hitting an all-time-high and the VIX dropping over 11% to 14.64. In securitization new ...

Greetings, US equity markets had a bad week as the S&P500 closed 3.3% lower at 2,659. CDX IG spreads widened marginally by 0.6 bps to 55 bps and CDX HY spreads widened by 8.7 bps to 337 bps. We have seen significantly higher volatility this year, driven mainly by rising interest rates and inflation expectations. No new MPL deals have priced since the rise in volatility, although we expect t ...