Reuters (December 8)
“Since war broke out in Ukraine and the U.S. Federal Reserve began a rapid cycle of raising borrowing costs early last year, it has been exceedingly difficult in most parts of the world for companies to get initial public offerings off the ground. Many are getting ready in case an opportunity arises,” but conditions remain unpromising. So far in 2023, “new listings have raised just $114 billion,” which is “on pace to be the lowest amount since 2008” and marks a “dramatic fall from the $571 billion peak achieved just two years ago.”
Tags: $114 billion, $571 billion, 2008, 2023, Dramatic fall, Fed, IPOs, Lowest, New listings, Peak, Rate hikes, U.S., Ukraine, Unpromising, War
Markets Insider (June 27)
“The banking crisis that unfolded earlier this year isn’t over, and banks could be hit with losses akin to what was seen in 2008 if the Federal Reserve doesn’t get inflation under control.” In its annual report, the Bank for International Settlements called attention to the “lasting ramifications of 2023’s bank failures, starting with the collapse of Silicon Valley Bank in early March.”
Tags: 2008, 2023, Annual report, Banking crisis, BIS, Collapse, Failures, Fed, Inflation, Losses, Ramifications, SVB, Unfolded
Houston Chronicle (June 17)
“U.S. mortgage rates had their biggest one-week jump in 35 years…. The 30-year rate climbed from 5.23% last week to 5.78% this week, the highest its been since November of 2008 during the housing crisis.” This is likely to accelerate the trend as higher borrowing rates have already been cooling the housing market. “Sales of previously occupied U.S. homes slowed for the third consecutive month in April as mortgage rates surged, driving up borrowing costs for would-be buyers as home prices soared.”
Tags: 2008, 30-year rate, 5.78%, Borrowing, Buyers, Home prices, Housing crisis, Jump, Mortgage rates, Sales, Soared, U.S.
Bloomberg (March 13)
“Trade’s share of global GDP peaked in 2008, and has been falling for the past decade. So the war in Ukraine doesn’t necessarily mark sharp a break in history. But it underlines and will perhaps cement the decline of globalization.”
Investments & Pensions Europe (August Issue)
“Credit investors would be wise to reflect upon the growing debt burden weighing on the global economy.” Debt has surged since the pandemic and it was already at high levels. “Global debt rose by $10trn (€8.9trn) in 2019 to $255trn. At the end of last year, global debt stood at 322% of global GDP, or 40% higher than before the 2008 financial crisis.”
Tags: 2008, 2019, Burden, Credit, Debt, Financial Crisis, GDP, Global economy, Investors, Pandemic, Reflect, Surged
Investment Week (November 10)
Famed investor Jim Rogers predicts the next crisis will be worse than that of 2008. “In 2002 it was bad, in 2008 it was worse and 2012 or 2013 is going to be worse still—be careful.” He points his finger at non-sustainable debt levels which have left countries with few options for increasing economic stimulus. “The world has been spending staggering amounts of money it does not have for a few decades now, and it is all coming home to roost.”
