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Illustration: Midjourney | Financial Times

Analysts spot a red flag not seen since 2007 coming for the corporate bond market

Last month’s banking drama means a technical tidal wave may be coming for the biggest slice of the $10 trillion market for corporate bonds. That’s according to TD Securities, where analysts are predicting that banks’ collective higher cost of funding will curb appetite for higher-quality credit and eventually force a spike in risk premiums. (Bloomberg Markets | Apr 19)

Investors bet US dollar has further to fall

Investors are betting on further weakness in the US dollar after its recent falls, as the fallout from last month’s banking crisis limits how far the Federal Reserve can raise interest rates and US investors hunt overseas for returns. After an 18-month bull run that took it to a 20-year high against a basket of currencies in September last year, the greenback has been in retreat as analysts have scaled back their expectations of US interest rate rises. Last week the dollar hit its lowest level in a year against the euro, as well as against the broader currency basket. (Financial Times | Apr 18)

US economic activity little changed, Fed report shows

US economic activity was little changed in recent weeks as employment growth moderated somewhat and price increases appeared to slow, according to the Federal Reserve 'Beige Book' published on Wednesday. The Fed also signaled they are nearing the end of what has been the most aggressive spate of policy tightening in 40 years, with most policymakers penciling one last quarter-percentage-point hike before what's expected to be a prolonged holding period. (Reuters | Apr 19)

BIS head warns of threats to financial stability, rates need to stay higher

The head of the Bank of International Settlements has warned that years of fighting economic crises have created conditions that are pushing the limits of stability when it comes to the international financial system. Agustín Carstens, general manager of the BIS, which is dubbed the central bankers' central bank, said this "region of stability" was not defined by interest rates, or debt levels, but instead influenced over time by political and technological forces and macroeconomic policies. (Reuters | Apr 17)

US regulator calls for greater scrutiny of hedge funds after bond turmoil

Hedge funds and other parts of the shadow banking system should face greater scrutiny after last month’s upheaval in US government bonds, the country’s top markets regulator has said, reflecting concerns that speculative investors pose a risk to financial stability. Gary Gensler, chair of the Securities and Exchange Commission, told the Financial Times that taming risks from speculative funds and other so-called non-bank financial institutions was now “more important than ever”. (Financial Times | Apr 15)

Photo: Aerial Perspective Images | Getty Images

How ChatGPT — and bots like it — can spread malware

Think about it: A lot of phishing attacks and other security threats rely on social engineering, duping users into revealing passwords, financial information, or other sensitive data. The persuasive, authentic-sounding text required for these scams can now be pumped out quite easily, with no human effort required, and endlessly tweaked and refined for specific audiences.

— Wired

Software must be secure-by-design, cybersecurity agencies say  

Software should have cybersecurity protection built-in before it goes on sale. This is the core message of new guidance from cybersecurity authorities in the United States, Australia, Canada, the United Kingdom, Germany, the Netherlands and New Zealand. These countries have produced joint guidance: Shifting the balance of cybersecurity risk: Principles and approaches for security-by-design and -default.

— World Economic Forum

Cisco routers targeted by Russian state-sponsored hackers

Cyber officials in the UK and US, along with Cisco Systems Inc., warned that Fancy Bear, a longtime hacking group believed to be supported by Russia's intelligence agency, is going after vulnerable Cisco IOS routers. Malware known as Jaguar Tooth was tailored to exploit a known bug on the equipment to establish access to victims' networks, government advisories said. A patch was available for the bug in 2017 but some organizations haven't updated their systems.

— Bleeping Computer

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Photo: Jamie Chung. Concept: Pablo Delcan. | NYT

More like the part of the dinner party when only the serious drinkers remain

What was Twitter, anyway? Twitter is both short-form and fast-moving, which together make it feel conversational. Like all conversations, it’s highly context-dependent, and like all good conversations, it’s guided by the pleasure principle. That’s what makes it fun: Who doesn’t want to be the person who can make everyone laugh at a dinner party? But Twitter also puts your dinner-party remarks in front of people who were not invited to the dinner party, showing them exactly how little you considered them before chiming in.

— The New York Times

Coming soon from the producers of 'The Wolf of Wall Street': NFTs

The 2013 film The Wolf of Wall Street, starring Leonardo DiCaprio as the debauched-stockbroker-turned-felon Jordan Belfort, has achieved cult status on web forums. Thousands of memes and clips circulate on sites such as Discord and Reddit, and countless goods based on the movie — posters, iPhone cases, hoodies — sell on EBay, Etsy and Redbubble. But Red Granite Pictures, the production company that owns the rights to Wolf, doesn’t get a cent of that money. So Red Granite is seeking to sell nonfungible tokens, or NFTs, to help it monetize the fan base and keep pirates at bay.

— Bloomberg Businessweek

Personal inflation calculator: what is your inflation rate?

As the cost of living continues to rise, find out how much inflation could affect your personal finances. Inflation affects us all, but the rate at which we experience it will depend on our unique spending habits. Here's a calculator to estimate your personal inflation rate.

— Financial Times