But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Why Scotland’s referendum could affect global businesses
Warnings and announcements are being made by major banks—including Lloyds, TSB, and the Royal Bank of Scotland—to move their registered offices and some operations to England in the event of a separation.
The Scottish referendum, due September 18, has sparked much debate on another key issue between Scotland and the United Kingdom—the North Sea oil.
Though Scottish independence may not directly affect the EU, as Scotland isn’t part of the monetary union yet, it may have a grave indirect impact.
The UK Treasury indicated in a report that Scotland’s banking systems would be too big to ensure depositor compensation in the event of a bank failure.
While the pro-independence Scottish National Party (or SNP) objects to having nuclear weapons on Scottish territory, military leaders in the UK have said there’s no alternative site for the missiles.
If the Scottish referendum votes yes on September 18, it would mean that Scotland would become independent of the United Kingdom. One key issue that would arise from that would be currency. There are three lines of thought in this regard.
Considering that the EU already has enough on its plate, a stalled economy, and high unemployment to begin with, tackling the repercussions of Scotland splitting from the United Kingdom and a possible ripple effect could make things difficult.
The Better Together campaign of the Scottish Referendum is the side that opposes Scotland breaking free of the United Kingdom pursuant to the September 18, 2014, voting.
The voting result of the Scottish Referendum, due September 18, will have a direct bearing on Scotland, the United Kingdom, and the 28-member European Union as a whole.
The United Kingdom (or UK) has sunk an awfully long way since the 19th century. But it remains the world’s sixth-largest economy and the second-largest in Europe behind Germany.
The Scottish economy stands firmly on four pillars: financial services, tourism, whisky, and oil. Scotland is one of Europe’s leading financial centers and the second financial hub in the United Kingdom outside of London.
Scotland, the northernmost country on the island of Great Britain, is part of the United Kingdom today. But Scottish voters will decide whether Scotland will remain part of the United Kingdom or become an independent country again on September 18, 2014.
The consistently strong data has pushed 10-year yields up to 2.6%, the highest level since early July. The move on the short-end of the curve has also been significant.
Market watchers will be paying close attention to Wednesday’s Fed statement for signs of the timing of a Fed rate hike. Our expectation at BlackRock is that there’s a good chance the Fed will change its language.
Given that Scotland is typically more pro-European Union (or EU) than the rest of the U.K., Scottish independence could raise the odds of an eventual EU exit by the U.K.
As I write in my new weekly commentary, over the past two weeks, several polls have suggested a realistic chance that the people of Scotland will vote for independence in this week’s referendum.
Last week’s stock losses were partly a reflection of investors looking ahead to the Scottish independence vote this Thursday and the Federal Reserve (or Fed)’s statement on Wednesday.
In its most basic form, securitization pools similar forms of debt—like credit cards, car loans, or real estate mortgages (IYR) (VNQ)—into special purpose vehicles (or SPVs). The cash flow from the debt in the SPV is divided into tranches. The tranches have different risk and return characteristics.
Federal Reserve staff are working on a proposal specifying numerical floors for collateral haircuts in SFTs. The proposal would include repos and reverse repos, securities lending and borrowing, and securities margin lending transactions. Entities that seek funding against these transactions would need to post a minimum amount of excess margin to the lender.
Historically, a flatter yield curve had an adverse impact on the financial institutions’ returns. It lowered their net interest margins. The Fed continues to stress an accommodative monetary policy. The policy and strong overseas demand have kept yields low at the long end of the curve. As a result, the difference between 30-year and five-year Treasury yields fell to 154 basis points on September 5, 2014.