◀ The Principal Blog

Watch Out for the TLAC Attack!



“Banks have to issue over a trillion U.S. dollars worth of bonds to satisfy TLAC requirements?!” exclaims a fixed income portfolio manager. “Stay calm. It’s not as bad as it seems,” says a fixed income analyst in his composed and distinct sounding British accent. “We need to sell our…

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Increased Bank Capital Requirements – Some Investors Love It, Some Hate It



On 9 December, the Federal Reserve (Fed) released a notice of proposed rule-making (NPR) that would require the largest U.S. banks to increase their capital levels even further. Specifically, this new capital requirement will be tied to a bank’s “systemic risk profile.” That’s a fancy way…

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