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What Deutsche Bank Left Off Its List of 30 Market Risks

17:09 07 January in Articles Written by Jon Henschen by rafferty

January 3, 2019 By Jon Henschen, ThinkAdvisor Ironically, one of the biggest risks to the global economy is Deutsche Bank's own derivatives business. Volatility and risk are of primary concern to advisors and investors in 2019. Deutsche Bank recently chimed in on these issues, releasing what it sees as the 30 primary risks for the New Year: Algo-driven, risk parity-driven fire sale in equities and credit continues Slowing growth in China and Europe slowing down the U.S. economy Slowing growth in China and Europe triggering significant U.S. dollar appreciation Tailing U.S. Treasury auctions and/or declining bid-to-cover ratios Increased U.S. T-bill issuance continues to push 3-month Libor-Overnight Index Saw wider Increased U.S. Treasury issuance pulls dollar out of investment-grade credit and equities Higher hedging costs continue to lower European and Japanese appetite for U.S. credit ...

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The Dangers of Private Equity to Broker-Dealers and the Financial System

19:15 16 October in Articles Written by Jon Henschen by rafferty

October 15, 2018 By Jon Henschen, ThinkAdvisor Private equity firms continue to have substantial involvement in the independent channel as they fill the void left by insurance companies exiting the broker-dealer universe. Private-equity ownership can bring benefits to the advisor, but we also see moves by PE firms that are detrimental to the interests of broker-dealers’ advisors. Why are institutional investors attracted to private equity, and what lies ahead? Here’s what’s happened with private equity ownership, past and present: Past Private Equity Success As the chart shows, LPL is the only private-equity owned firm to go public, with management and larger producing advisors making millions from selling their stock ownership. For all the other PE-owned BDs, divesting was the exit strategy. NFP stood out as a particularly positive case of PE ownership, as staffing remained robust and...