Bloomberg (September 21)
“The value of the yen has slumped to the lowest on record, as measured against a broad basket of its peers and adjusted for inflation,” the Bank for International Settlements found based on data from 1970 onward. This serves to “underscore the pressure on the Bank of Japan to normalize its ultra-easy monetary regime, which continues to weigh down the nation’s interest rates and weaken the currency. The drop in the so-called real effective exchange rate means Japanese have to pay more for imported goods and services at a time when wage growth is failing to compensate for inflation.”
Tags: BIS, BOJ, Currency, Imports, Inflation adjusted, Interest rates, Japan, Normalize, Pressure, Real effective exchange rate, Record, Slumped, Ultra-easy, Wage growth, Yen
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
Bloomberg (February 23)
“For Chinese leaders, the need to prop up faltering GDP growth outweighs fears about a rapid buildup in debt.” New loans from banks were 70% higher in January than a year prior. “Debt now tops 230 percent of GDP and could reach as high as 300 percent of GDP if current trends continue…. Even the Bank for International Settlements, a body not known for hyperbole, has warned that Chinese debt is reaching levels that typically trigger financial crises.”
Real Estate Investment Today (April Issue)
“REITs contribute to more resilient real estate markets and a more resilient financial system.” Sub-prime mortgages contributed to the residential property collapse, but REITs helped stabilize the commercial market. A recent study by researchers from the University of Wisconsin and the Bank for International Settlements found that REITs provide markets with much needed transparency and liquidity. It’s “clear that REITs provide real benefits for the broader commercial real estate industry, for investors and for our nation’s economy.”
Tags: BIS, Commercial, Economy, Financial system, Industry, Investors, Liquidity, Markets, Real estate, REITs, Residential property, Resilience, Sub-prime, Transparency, University of Wisconsin
