MARKET OVERVIEW
The U.S. market for junior subordinated debt is experiencing a resurgence as companies aim to meet
investor demand for high-yield assets during expectations of declining interest rates. These bonds offer
higher yields than senior bonds, with maturities of up to 40 years, attracting investors seeking securities,
mobilising companies to issue $4.6 billion worth of such debt, according to Barclays data. In Europe, the
French central bank used its risk provisions to offset a pre-tax loss of over 12 billion euros last year,
caused by higher interest rates. Meanwhile, China's central bank maintained its key policy rate
unchanged and withdrew cash from medium-term policy loans to some financial institutions, signalling a
commitment to currency stability, despite uncertainties surrounding expected Federal Reserve interest
rate cuts. With the Fed's tightening measures strengthening the dollar and pressuring the yuan, China's
move to leave rates steady: PBOC Governor Pan Gongsheng assured the bank's capability to stabilise
the yuan and the focus on preventing idling of funds, as noted by Xing Zhaopeng. Furthermore, Citigroup
is currently investigating allegations of workplace harassment against Edward Ruff, a senior U.S. banker,
who is accused of displaying abusive behaviour towards subordinates, including shouting insults during a
meeting and intimidating junior bankers. Both internal scrutiny and external lawsuits regarding allegations
of harassment, urge the company to reaffirm its commitment to addressing inappropriate behaviour and
defending against such claims.
INDEXES
Nikkei 225 went down by 1.34% this week, closing at 38,707.64, while Hang Seng Index gained 1.86%
and reached 16,720.89 as of 16th March, 21:40. The Nasdaq Composite fell by 0.49%, and is now at
around 15,973.17. Dow Jones Industrial Average increased by 0.12% closing at 38,714.77, and increased
by 0.1% with 5,117.09.
BONDS & CURRENCY
The yield on the 1-month U.S. Treasury note stands at 5.381% and the leading 2-month U.S. Treasury
note with 5.393%. The yield of UK 2-year government bonds reached 4.329% with an increase of 0.006,
while the 5-year has seen an increase of 0.005 and stands at 4.025%. As for 15th of March the exchange
of EUR/USD is equal to 1.0892. The exchange of EUR/GBP is 0.8551, and EUR/INR is 90.2878.
CRYPTOCURRENCY
On 13th of March Bitcoin reached USD 66,768.60, and then started to decline, falling below USD
63,775.96 two days later. Over the month it increased by USD 13,151.84 (27.17%). Ethereum fell 11.35%
this week, or USD 422.09, although it has seen a gain of 26.76%, corresponding to 696.23, over the
month. Pepe Coin (PEPE), Shiba Inu (SHIB), and Retik Finance (RETIK) have surged in popularity, as
their prices fell to USD 0.000. The iShares Bitcoin Trust closed with USD 39.39, with a 0.3% decline.
COMMODITIES
This week the price of gold declined by 0.62% settling on EUR 1,980.90 per ounce. The week high and
low were, respectively, EUR 2,002.25 and EUR 1,969.39. In contrast, the price per ounce of silver
increased by 4.07% this week, and is equal to EUR 23.17. The week high and low were, respectively,
EUR 23.37 and EUR 22.03. The high and low for the price of a platinum ounce are EUR 876.72 and EUR
836.36, with a 3.23% gain over the week and the current price, as for 16th of March 21:20, of EUR 865.2.
Both gasoline and heating oil experienced an increase in prices: their cost per gallon is, respectively, USD
272.08 and USD 272.70. The natural gas price decreased and is settled at USD/MMBtu 1.66. Within the
agricultural sector, all i.e. corn, cocoa, and cotton prices increased.
Flow Traders Investment Competition
Another week in the Flow Traders Investment Competition has passed and the top 5 remains unchanged! Our most notable climber of the week is newcomer Asteria. They have managed to climb 9 spots to the 13th place in the competition. The biggest drop this week was by Carhart Investments... let's see if they will be able to get back to the left row of the ranking.
