29 Mar 2017

Apocalyptic forecasts for UK Finance miss key points

I am tired to repeat the same old arguments (first published back in Feb 2016!) that Brexit is not the Armageddon that some predict. While some firms will boost their presence on the Continent London will benefit by being more open to the 'rest' of the World. Being in sole charge of policy the UK will be much more nimble than the multi-headed EU bureaucracy that has to satisfy 27 squabbling member states. And spreading staff all over Europe will do nothing for the efficiency of the (mostly) larger financial firms that de-emphasise London. Why triggering Brexit signals a long, slow bleed for the UK banking sector

28 Mar 2017

ECB's Sabine Lautenschlager on Brexit banking passport tests

Refreshing honesty from a perfect representative of the 'Deep State', German version. Fortunately the major banks - they are the ones who do the predominant share of Continental European business - are well established in relevant countries. So this is more empty posturing by a life-long bureaucrat that has to sing to the statist hymn sheet.
ECB's Sabine Lautenschlager on Brexit banking passport tests - Business Insider

Brexit will bring four types of market distress

There will be some adjustment period and it could be turbulent. Problem with Brexit is that the final terms are not known so planning for the time after is tricky. Reason to get on with it - not hang around until 27 countries, the Eurocrats and the EU Parliament make up their mind.
Brexit will bring four types of market distress: Portfolio manager

24 Mar 2017

Deutsche Bank is planning a new London HQ despite Brexit

No surprise to our readers! Having too many major hubs is a recipe for inefficiency! There is only one Hollywood as well!
Deutsche Bank is planning a new London HQ despite Brexit

21 Mar 2017

Frankfurt is in 'pole position' in the Brexit jobs race

Been there dozens of times for business, nice people, but if anyone believes it will take over as THE major financial center I have a bridge to sell....
Frankfurt is in 'pole position' in the Brexit jobs race

20 Mar 2017

Texas Teachers - new Fee Model for Hedge Funds

Will 1+30 become the new standard? Relating the higher performance fee to some kind of hurdle rate is the problem. Which rate is suitable? And if is is some money market rate this is particularly problematic. At present rates are so low that beating them would not be that onerous. And if rates are high, 6, 7 or 8 pct, then the hurdle is difficult to overcome.

Outlook for Actice Asset Management no so bright

Morgan Stanley on active managers - Business Insider

18 Mar 2017

AllianceBernstein tries Performance Fees

The basic fee of 0.05% in case the funds underperform are quite meagre, will this approach be sustainable? The fee income has to pay for a lot of expenses. The comp for CEO Peter Kraus alone ($6.35 Mio according to Yahoo) would need a fund volume of 12.7 Billion (!!) to pay for, and that leaves NOTHING for any other costs!
AllianceBernstein Fires the Latest Shot in the Fee Wars (Barron's, PayWall)

16 Mar 2017

The Dystopian Future of Price Discrimination

Time for our Solons to stamp out any incipient abuses. Start with Google - ban collecting search history, ban selling slots on search results, then Amazon - break up the business, own sales and agency sales, Apple - divest from content sales

The Dystopian Future of Price Discrimination - Bloomberg View