Join Mailing List

For latest news and information about Treasury and Financial Markets, enter your details below:

Barbican Consulting Blog

Bank multipliers

January 19th, 2017

US bank stocks are indicating that the new administration may scale back the regulatory onslaught that followed 2008. Could this make Bank capital requirements less restrictive? It could. Other countries would need to follow suit or be at a competitive disadvantage. Whether you think this is good news depends on your views. On balance some […]

Read more »

Posted in Financial Markets | Post a comment

Let’s be clear

December 15th, 2016

What do the following two examples have in common? Example 1: If a 25-year-old saves £1,000 for retirement in 40 years’ time how much will they have? That depends on the rate of return. Using a 5% rate (realistic in current conditions) the amount is £7,040. A fund manager who charges 1% reduces this to […]

Read more »

Posted in Financial Markets | Post a comment

Man meets machine

November 19th, 2016

If you have tried any of the following you could be in for a nasty surprise. Things are not as smooth as advertised. Opening an account Moving money Altering an asset manager Changing details The list goes on…… With the aid of technology they should all be simple and seamless but you end up doing […]

Read more »

Posted in Financial Markets | Post a comment

A political measure

October 24th, 2016

Just before the big vote few people expected the UK to opt out of the EU. If you believe that markets are, by and large efficient, the small risk of Brexit was priced in albeit with a low probability. However because of a yes/no decision the unexpected vote makes larger waves. Something traders call gamma […]

Read more »

Posted in Financial Markets | Post a comment

Carry on

September 20th, 2016

Traders know that being long means when the market goes up or sideways they win. This forms the basis for carry trades. That’s winning two times out of three. The edge comes from the asset’s income exceeding the cost of financing.  Short sellers have a harder time. The cost of borrowing can be hugely expensive. […]

Read more »

Posted in Financial Markets | Post a comment

Review time

August 31st, 2016

Back in 1997 Gordon Brown announced that the Bank of England would have freedom to control monetary policy. It was heralded as a move away from short term political interference towards a long term framework of prosperity. Does this need rethinking? In this country the elected government has two economic levers, fiscal and monetary policy. […]

Read more »

Posted in Financial Markets | Post a comment

FX – more than a rate

July 31st, 2016

Many banks completely avoid foreign exchange risk. They borrow and lend in the same currency. Any customer trades are immediately offset. Bigger players use spot, forward and options markets. But an underlying theme of monitoring and managing exposures overrides. For small businesses things can be different. FX mismatches don’t always get priority. With the recent […]

Read more »

Posted in Financial Markets | Post a comment

Cash vs shares

June 26th, 2016

Paul Lewis in an article in the FT on 18/6/16 (Cash v stocks: the winner may surprise you) has uncovered something that people need to be aware of. The fund management industry attracts savings in the form of ISAs and pensions on the basis that it can outperform. But does it offer the saver any […]

Read more »

Posted in Financial Markets | Post a comment

Operational risk & common sense

May 19th, 2016

People, systems and external events all generate operational risk. In the words of one Rogue trader “It’s sure to go up, trust me.” Whilst we’ve been focused on solvency and liquidity this just quietly ticks away – a sort of Cinderella of risk that from time-to-time bites. It makes you ask the question “just why […]

Read more »

Posted in Financial Markets | Post a comment

Fact or fiction?

April 21st, 2016

Forward looking projections ask us to look into the future. Their uses are varied and range from planning and risk to investment and speculation. We try to eliminate guesswork by using a model. It contains the inputs and algorithms to provide answers. Subjectivity often abounds. The inputs are frequently estimates they include correlations and behaviour. […]

Read more »

Posted in Financial Markets | Post a comment