Week InReview

You are invited...
 
George Michael Gerstein, chair of the INVESTORS Legal & Regulatory Council cordially invites you to his firm's webcast "The SEC Proposals: Standards of Conduct for Investment Advisers and Broker-Dealers"  featuring David Grim, former director of the SEC's Division of Investment Management.

Monday, Apr 23rd
1 - 2 pm EDT
 
For more info, or to register, click here.

Friday | Apr 20, 2018
As Treasuries spread from 5 to 30 years hits narrowest since 2007, both camps agree that an inverted Treasuries yield curve would be an ominous sign for growth. And with the latest bout of flattening, the reality of sub-zero spreads may soon collide with an otherwise sanguine outlook on the economy. (Bloomberg Quint | Apr 19)

What happens in Treasuries doesn't stay in Treasuries
The pickup in U.S. funding costs is starting to be felt across the globe.  (Bloomberg Gadfly | Apr 19)

U.S. regulatory rollback boosts sales of debt products
The rise in volumes, which raises concerns that companies will binge on cheap financing just as the credit cycle reaches its peak, comes after the U.S. Court of Appeals for the District of Columbia Circuit in February found that CLO managers were not subject to a risk retention rule that was introduced in the wake of the financial crisis. (Financial Times | Apr 18)

Vix hits one-month low as volatility retreats
That's according the Cboe's Vix, and represents the lowest level for Wall Street's so-called fear gauge in a month as investors' apparent concerns about military action in Syria, the trade spat between the U.S. and China and the pace of U.S. interest rates abates. (Financial Times | Apr 17)

U.S. Libor replacement, two weeks out, has some issues
Two weeks after its debut, the presumptive heir to Libor in the U.S. is already running into some turbulence; New York Fed finds erroneous data in SOFR calculation. (Bloomberg Markets | Apr 16)
The Cyber Cafe
Cybersecurity news every Friday
Evolving risks addressed in Fed cyber framework update
(Apr 16) -- The Commerce Department updated its voluntary framework for private companies and government agencies to manage critical infrastructure cybersecurity risks, including self-assessment of risk. Corporate boards increasingly use this resource instead of more tech-intensive guidelines. Read more here.

Firms including sign cybersecurity tech accord
(Apr 17) -- Thirty-four tech firms have signed a pledge to fight cyberattacks, Microsoft said in a statement.
  • Under the four principles of the accord, companies commit to:
    • Protect all users and customers everywhere
    • Oppose cyberattacks on innocent citizens and enterprises from anywhere
    • Empower users, customers and developers to strengthen cybersecurity protection
    • Partner with each other and with like-minded groups to enhance cybersecurity
  • List of 34 companies under pact include Facebook, HP Inc., Oracle
  • Announcement follows an unprecedented joint alert from the U.S. and U.K. on the threat of cyber attacks from Russian state-sponsored actors, and a 2,000 percent increase Russian "trolling" activity following missile strikes in Syria
  • United Nations leaders have previously called to establish standards similar to the Geneva Convention to guide digital warfare
SEC fiduciary rule could eclipse DOL appeal
(Apr 19) -- The Securities and Exchange Commission voted 4-1 to propose a roughly 1,000-page plan for a 'best interest' standard for brokers and investor protections. The agency also proposed investment advisers and brokers create brochures to clarify their fees and legal duties. The Department of Labor has until April 30 to appeal a March 15 decision that vacated its fiduciary rule. Having an SEC proposal on the table could make it more likely the DOL won't appeal.
Binge reading disorder
Hand-curated, chosen with love
Do you like that stock, or do you just love its ticker?
Investors may be overly attracted to companies with familiar-sounding names or tickers.
 
A Russian billionaire lost his $492 million yacht in a divorce ruling 
 
 
 
A London court ordered the seizure of a luxury $492 million yacht owned by a Russian billionaire as judges sought to enforce one of the largest divorce payouts in U.K. history.

The oral history of the best 'Office' episode ever
'The Dinner Party' was the most brilliantly excruciating episode of 'The Office.' A look back on its 10th anniversary.
- Rolling Stone