financial crisis

  The yield on France’s 10-year government bonds has risen to 4.9 percent. Rising government bond yields reflect diminishing trust in public finances, with France emerging as the greatest concern. Investors are demanding greater compensation for the risk of lending to the French government. This risk premium makes debt servicing more expensive, while issuing new […]

Fitch, one of the three leading rating agencies, has downgraded the United States’ creditworthiness from the top-notch AAA to AA+. The reasons for this downgrading include not just further fiscal deterioration but also the continuous debt ceiling negotiations that jeopardize Washington’s capacity to pay its bills. This downgrade may not bring about dramatic short-term consequences, especially since […]

Following the 2008-2009 global financial crisis, policymakers unintentionally created a regulatory gap that gave nonbanks – enterprises without a banking license that are allowed to offer some banking services – a considerable competitive advantage over banks. It is a problem that is now coming back to haunt them. Fifteen years ago, all eyes were on […]