Liquidity – Beacon at Bangsar http://beaconatbangsar.com/ Tue, 22 Nov 2022 04:40:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://beaconatbangsar.com/wp-content/uploads/2021/03/cropped-icon-32x32.png Liquidity – Beacon at Bangsar http://beaconatbangsar.com/ 32 32 CalPERS board reflects on liquidity and leverage; higher delegation limits https://beaconatbangsar.com/calpers-board-reflects-on-liquidity-and-leverage-higher-delegation-limits/ Tue, 22 Nov 2022 04:40:22 +0000 https://beaconatbangsar.com/calpers-board-reflects-on-liquidity-and-leverage-higher-delegation-limits/

At the height of the GFC, CalPERS was forced to sell assets it didn’t want to sell at the worst possible time. “What was actually liquid was high-quality stuff,” Dan Welcome, CalPERS deputy IT director who joined the fund in 2004, recalled at a recent board meeting.

The Californian pension fund found itself overweight assets that it no longer wanted to hold, but finding a buyer was like plunging into an abyss. In short, the GFC revealed a deep liquidity crisis, revealing that the giant fund had lost control of its own funding levels with a large portfolio of securities loaned against cash, liquidity spread across all classes of assets and poor visibility on capital calls. the corner.

Lessons learned during those traumatic months rewrote the CalPERS approach to liquidity, fueled the decision to add a 5% strategic allocation to leverage, and instilled the determination to be able to seize opportunities in a bear market. .

After years of preparation, these changes have now crystallized into the fund’s latest strategic asset allocation, running since July this year. “I can think of few things that are more important that we’re willing to be a buyer than having to be a seller when the market turns,” board member Lisa Middleton said.

Strategy in action

Today, the $429 billion pension fund has dry powder to invest in, as evidenced recently by its ability to buy opportunities during the pandemic-induced selloff. Unfunded commitments remain ready in dry powder for partners. The dry powder is also in separately managed accounts, ready to deploy alongside hand-picked strategic partners in co-investment vehicles. Unlike in the past, all capital calls are consistent with assumptions and models, and are coming at the right pace.

CalPERS sources of liquidity are deliberately diverse. Along with dry powder reserves or the ability to tap into pension contributions as a source of cash, the fund can seize the opportunity to invest in distressed assets by selling stocks, using that money to buy the asset while using an equity futures contract to maintain equity exposure. This is on-demand cash from the fund’s huge pool of liquid public market assets that are both sellable and desirable. A centralized approach also allows the fund to choose the funding sources that best optimize the cost and composition of the portfolio at any given time.

Today, CalPERS has reduced its securities lending portfolio and collateral calls are equity-for-equity based, which means collateral levels don’t change but move in step with the market, a declared Welcome.

CalPERS regularly reports on its liquidity and leverage position – liquidity levels have been lower in recent months and could drop further on another leg down in the markets. But a central pillar of the strategy and the hallmark of its success is that the investment team need not continually focus on liquidity as the pace and framework is set. “We can focus on investing,” CalPERS chief investment officer Michael Krimm told the board.

Today, liquidity provisioning takes into account capital calls and margin for derivatives, while keeping an eye on market movements and volatility based on internal forecasting models. Liquidity management involves the participation of the entire fund, forecasting rebalancing needs, planning capital calls and identifying market trends in a robust process.

The board heard how extensive analysis over the years has involved exploring the inherent liquidity of CalPERS assets, exploring how easily an asset can be traded and the revenue it generates. The results revealed that cash, government bonds and stocks have the highest level of liquidity and are easily sold to meet funding needs. In contrast, private equity and private debt have higher returns, but less opportunity to generate cash on demand.

Private Markets

Along with a new strategic leveraged allocation, CalPERS’ latest asset allocation promises a strengthened allocation to private markets spanning private equity, real assets and private debt. At the November board meeting, the investment team again called for new tools and flexibility in managing the allocation, namely an increase in staff delegation limits.

“We need more tools and an update of the policies put in place when the fund had a lower allocation to private assets,” urged CIO Nicole Musicco, determined to build an agile investment philosophy that goes beyond simply setting an SAA and pressing the button. Established every four years using assumptions about capital markets stretching 20 years into the future, the assumptions also need to be reviewed along the way, working with partners and checking governance, he said. she declared.

While it is difficult to accurately account for the opportunity cost of not allocating more to private assets due to staff delegation limits (knowing that CalPERS would be unlikely to invest, GPs tend not to come up with opportunities), the investment team warned that the cost had been high. For example, every billion dollars invested in co-investments returns about $335 million more over ten years than the same billion dollars invested in fund investments.

Higher delegation limits mean the team can accept the larger deal sizes needed to increase private equity exposure as CalPERS targets an annual commitment pace of more than $15 billion to achieve allocation target of 13%. The private equity team will need to review up to 50 deals per year to approach annual co-investment engagement targets, making the ability to accept larger co-investment deals while reducing the monitoring burden of smaller transactions.

With respect to investments in private equity funds, CalPERS expects 70% of commitments to exceed the investment team’s current delegated authority limits. The team expects to engage in around 20 funds this year, which will lead to over 70 lead managers over time.

The team has made 116 fund commitments over the past 5 years, approximately half of which exceeded delegated authority. Two recent investments exceeded the authority of the CIO and were scaled back. “It is difficult to achieve scale with lower delegated authority limits and impairs our ability to achieve our SAA,” Musicco said.

This is the same problem in infrastructure where investment needs to more than double over the next three years to meet SAA targets. The team is to commit $5 billion per year to infrastructure with an average commitment of $1.25 billion per transaction. The infrastructure team has made approximately 19 commitments over the past five years and 32% exceeded delegated authority and were approved by the IOC. Two transactions exceeded the CIO’s authority and were reduced to meet the CIO’s delegation limit.

Decision-making culture

At the last Investment Committee meeting of 2022, Musicco explained that a crucial element to building CalPERS’ private market expertise includes revamping the Investment Underwriting Committee. The committee, one of three committees chaired by the IOC and tasked with reviewing all private market allocations above a certain size, is now structured to leverage expertise from all corners of the world. investment team in a collaborative process.

“I chair it, but the real secret sauce is asset class leaders and other experts offering a diverse lens,” Musicco said. “You make better decisions when you have the right eyes around the table,” she said, concluding that a collaborative approach allows the team to “learn a lot from each other.”

]]>
Decoding The Credit Flow – Tightening Liquidity, Rise In Rates Favorable For Banks Vs NBFCs: Nirmal Bang’s Thematic View https://beaconatbangsar.com/decoding-the-credit-flow-tightening-liquidity-rise-in-rates-favorable-for-banks-vs-nbfcs-nirmal-bangs-thematic-view/ Sat, 19 Nov 2022 07:17:54 +0000 https://beaconatbangsar.com/decoding-the-credit-flow-tightening-liquidity-rise-in-rates-favorable-for-banks-vs-nbfcs-nirmal-bangs-thematic-view/

BQ Prime’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s top brokers, asset managers and research agencies. These reports offer BQ Prime subscribers the opportunity to broaden their understanding of companies, sectors and the economy.

Our analysis suggests that the incremental flow of credit to the commercial sector in the first half of FY23 is at a multi-year high compared to the recent past.

Additional credit flow in the first half of FY23 amounted to Rs 8 tons, led by bank credit flow of Rs 7.4 tons. In contrast, corporate bond issuance, which had peaked at Rs 1.5 tonnes in the first half of FY21 due to falling interest rates, has now slowed to a trickle.

The additional credit flow from banks, while being driven by retail credit, is now becoming more widespread, services (mainly non-banking financial corporations), industry (especially micro, small and medium enterprises) and agriculture also contributes.

While the recovery in credit bodes well for banks, we expect pressure on net interest margins with credit growth well above deposit growth and a credit-to-deposit ratio hovering around 75%.

Meanwhile, NBFCs have turned to banks for their funding needs, but banks’ exposure to NBFCs is now hovering around all-time highs.

Click on the attachment to read the full report:

DISCLAIMER

This report is written by an external party. BQ Prime does not guarantee the accuracy of its content and is in no way responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert based on your individual needs. The opinions expressed in the report are those of the authoring entity and do not represent the opinions of BQ Prime.

Users have no license to copy, modify or distribute the content without the permission of the original owner.

]]>
IOSC: Feedback on Liquidity Drivers in Corporate Bonds https://beaconatbangsar.com/iosc-feedback-on-liquidity-drivers-in-corporate-bonds/ Thu, 17 Nov 2022 09:24:53 +0000 https://beaconatbangsar.com/iosc-feedback-on-liquidity-drivers-in-corporate-bonds/

IOSCO has published an information note summarizing the responses to its April 2022 working paper on ‘Corporate Bond Markets – Drivers of Liquidity During COVID-19 Induced Market Stress‘ (“Statement of comments”).

The Feedback Statement was published alongside IOSCO Thematic Review the implementation of its 2018 recommendations for the management of liquidity risk in UCITS.

The feedback statement summarizes stakeholders’ views on possible ways to improve market functioning and liquidity provision in corporate bond markets. This includes assessing the feasibility, benefits, and costs of mitigating sudden changes in liquidity demand and alleviating supply-side market constraints, particularly in times of stress.

The Feedback Statement also takes into account the results of the Joint IOSCO-OECD Conference on Corporate Bond Markets held in June 2022.

Comments received from stakeholders are broadly consistent with the findings and observations contained in the discussion paper. Responses are generally in favor of continuing work to facilitate an increased supply of liquidity to corporate bond markets. However, it is recognized that there is no miracle solution. This reflects the fact that corporate bonds are rarely traded even in normal times compared to other large developed markets such as equities.

All of the evidence presented in the discussion paper, as well as the comments received, nevertheless suggests that there is room for improving the supply of liquidity and the functioning of the market.

IOSCO recognizes the importance of promoting liquidity in the corporate bond market, consistent with its mandate to support healthy global capital markets, while recognizing that bond markets have certain inherent characteristics that can undermine the supply of liquidity in times of stress.

The main conclusions of the working paper and the comments received will inform IOSCO’s ongoing review of the sector and future reflections on ways to improve market functioning and liquidity supply resilience in times of stress. . IOSCO will consider continuing work on improving liquidity provision in IOSCO’s next 2023-2024 work plan, including coordination with other international organizations as appropriate.

Mr. Jean-Paul Servais, Chairman of the Board of Directors of IOSCO, said: “IOSCO continues to support global efforts coordinated by the FSB to improve the resilience of non-bank financial intermediation. The significant growth in credit intermediation outside the banking sector underscores the critical importance of functioning market infrastructures and resilient market liquidity – both on the demand and supply side – for the capacity of the financial system to absorb systemic shocks. So far, international policy has mainly focused on reducing the demand for liquidity in times of crisis. It is also essential that the international regulatory community work together to consider ways to improve the provision of liquidity and the functioning of the market, particularly in times of crisis.

Source: IOSCO

]]> China’s ‘most comprehensive’ rescue package for property sector lifts stocks, bonds https://beaconatbangsar.com/chinas-most-comprehensive-rescue-package-for-property-sector-lifts-stocks-bonds/ Mon, 14 Nov 2022 08:48:00 +0000 https://beaconatbangsar.com/chinas-most-comprehensive-rescue-package-for-property-sector-lifts-stocks-bonds/

HONG KONG, Nov 14 (Reuters) – Chinese real estate stocks and bonds soared on Monday as the market applauded Beijing’s “most comprehensive” support measures aimed at boosting liquidity in the sector in its latest attempt to stabilize the economy. a key pillar for the world’s second largest economy.

The package, which sources say provides multiple funding measures for the cash-strapped industry, has been hailed by analysts as a “turning point”, with one even describing it as the equivalent of “soggy rain after a long drought”.

China’s property sector, which accounts for a quarter of the economy, has struggled with defaults and stalled projects, undermining market confidence and weighing on growth.

Earlier efforts by policymakers to help ease the liquidity crunch did little to bolster the real estate market.

The plan comes nearly a month after Chinese President Xi Jinping secured his third term as leader of the ruling Communist Party at a time when the economy is facing a series of headwinds, including China’s zero COVID strategy. , a housing crisis and the risk of a global recession.

“We think real estate will be a much smaller drag on GDP (gross domestic product) growth in 2023,” said Tao Wang, chief China economist at UBS Investment Bank Research.

The Hang Seng Mainland Property Index (.HSMPI) jumped more than 13.5% to close at a two-month high, with the stock prices of many Chinese property developers posting double-digit gains.

country garden (2007.HK) rose 45.5% to a high of more than three months. Logan Group (3380.HK)KWG Group (1813.HK)Agile group (3383.HK) and R&F properties (2777.HK) all increased by more than 30%.

A Yango Group dollar bond in default due 2023 rose 1.787 cents on the dollar to 2.712 at the start of trading, according to data from Duration Finance. Powerlong Real Estate’s April 2025 bond traded at 9.275 cents, up 3.055 cents from Friday. Their ties also increased on land.

Two sources told Reuters on Sunday that a notice to financial institutions from the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 measures to support the real estate sector, including loan repayment extensions.

The PBOC and CBIRC did not respond to Reuters requests for comment.

Meanwhile, the CBIRC issued a notice on Friday allowing commercial banks to issue letters of guarantee to property companies for blocked pre-sale housing funds.

REAL ESTATE MARKET IN ILLNESS

Citi said the package signals a major shift in regulators’ policy stance toward developers, moving from “imposing restrictions” to “providing support,” and “saving projects, but not developers” to “saving both developers and projects”.

The notice “introduced by far the most comprehensive package of support measures for the struggling property market”, he said.

Jefferies estimated that the package, along with other recent policies, would inject about 1.3 trillion yuan ($183.83 billion) of credit into the real estate sector, largely covering government bonds and developer fiduciary products. which will expire by the end of 2023.

Last week, the National Association of Capital Markets Institutional Investors announced it would expand a program to support about 250 billion yuan in debt sales by private companies, including real estate developers.

Some investors, however, remained cautious about the impact of the latest policy as regulators have already made numerous attempts to revive the real estate sector and the macro environment remains weak amid the country’s COVID restrictions.

China’s real estate sector has slowed sharply this year as the government seeks to limit excessive borrowing by developers.

The crackdown sparked a slump in house sales and prices, bond defaults and the suspension of home construction, angering homeowners who threatened to stop mortgage payments.

Private data released earlier in November showed home prices in 100 cities fell for a fourth month in October, while real estate sales by square footage fell about 20% year-on-year.

“Ultimately, the rebound in home sales is still necessary for an ultimate industry comeback,” said James Wong, portfolio manager at GaoTeng Global Asset Management Ltd.

Li Gen, CEO of Beijing BG Capital Management Ltd, which specializes in credit investing, said developers who did not default would benefit the most, but the aid would be “less meaningful” for bonds. offshore real estate, as it is still unclear how offshore financing could be improved.

Citi said the package should also help banking stocks as it eases investor concerns about developer credit risk.

Banks more exposed to developers, including Ping An Bank (000001.SZ)industrial bank (601166.SS) and China Merchants Bank (600036.SS)would particularly benefit, added Citi.

($1 = 7.0718 Chinese yuan renminbi)

Reporting by Clare Jim; Editing by Bradley Perrett and Ana Nicolaci da Costa

Our standards: The Thomson Reuters Trust Principles.

]]>
Kaplan Fox Investigates Liquidity Crisis at Cryptocurrency https://beaconatbangsar.com/kaplan-fox-investigates-liquidity-crisis-at-cryptocurrency/ Thu, 10 Nov 2022 20:36:27 +0000 https://beaconatbangsar.com/kaplan-fox-investigates-liquidity-crisis-at-cryptocurrency/

NEW YORK, Nov. 10, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) investigating potential claims regarding crypto exchange platform FTX Trading LTD d/b/a FTX, FTX US, their founder and CEO Sam Bankman-Fried, and Alameda Searcha related party cryptocurrency commercial society.

If you have been affected by the recent revelations about FTX and would like to discuss our investigation, please contact us by email jcampisi@kaplanfox.com or by calling (212) 687-1980.

As of November 2, 2022, news emerged that Alameda Research was facing a liquidity crunch after Alameda’s balance sheet leaked. According to a Coindesk article, an industry expert observed “It is fascinating to see that the majority of equity in the Alameda enterprise is actually FTX’s own centralized and printed token”.

Then it was revealed that FTX chief executive Sam Bankman-Fried told an investor this week that Alameda owed FTX about $10 billion. FTX allegedly made loans to Alameda using money customers deposited on the exchange for trading purposes. FTX reportedly had $16 billion in client assets and lent more than half of its client funds to Alameda.

FTX suspended client withdrawals earlier this week after being hit by around $5 billion in withdrawal requests, according to a tweet from Mr Bankman-Fried. The crisis forced FTX to scramble for an emergency investment. “We are spending the week doing everything we can to raise cash,” FTX CEO Sam Bankman-Fried said in a statement. Tweeter. As of this afternoon, FTX’s website for US users indicates that it is currently unable to process withdrawals and “strongly advises against” making deposits.

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

WHY CONTACT KAPLAN FOX – Kaplan Fox is a leading national law firm specializing in complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in complex litigation, Kaplan Fox offers the professional experience and background that clients demand. By pursuing cases at the federal and state levels, Kaplan Fox has successfully shaped the law by winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you can visit our website at www.kaplanfox.com.

If you have any questions regarding this survey, please contact:

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 687-1980
E-mail: jcampisi@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.comox.com

]]> Markets turn red as FTT dumps amid rumors of liquidity issues https://beaconatbangsar.com/markets-turn-red-as-ftt-dumps-amid-rumors-of-liquidity-issues/ Tue, 08 Nov 2022 12:45:00 +0000 https://beaconatbangsar.com/markets-turn-red-as-ftt-dumps-amid-rumors-of-liquidity-issues/

In the past 24 hours, the cryptocurrency market capitalization saw net outflows of $48.79 billion to $971.29, from $1,028.2 billion at press time – down by 4.79%.

Bitcoin’s market cap fell 5.03% to $378.86 billion from $398.3 billion. Ethereum’s market capitalization also fell by 6.29% to $181.53 billion from $193.3 billion.

In the past 24 hours, the top 10 cryptocurrencies have all recorded losses. Solana and Dogecoin lead the losses, posting declines of more than 10% respectively during the reporting period. BTC recorded a loss of 5.09%, while ETH fell 6.26%

The market caps of Tether (USDT) and BinanceUSD (BUSD) remained largely flat at $69.4 billion and $22.5 billion, respectively. The USD Coin (USDC) saw an increase to $43.15 billion.

Bitcoin

Over the past 24 hours, Bitcoin posted losses of 5.09% to $19,698 as of 7:00 a.m. ET. Its market dominance fell from 38.77% to 38.66%.

BTC peaked at $20,882 in the past 24 hours and hit a low of $19,448, according to data from CryptoSlate.

CryptoSlate wMarket Update
24-hour BTC price performance (Source: Tradingview)

Ethereum

In the past 24 hours, Ethereum is down 6.26% to $1,480 as of 7:00 a.m. ET. Its market dominance has also declined to 18.58 from 18.8% at press time.

ETH lost its $1,500 support around 21:00 UTC. The second-largest digital asset peaked at $1,604 and bottomed at $1,443.

CryptoSlate wMarket Update
24-hour ETH price performance (Source: Tradingview)

Top 5 winners

Reef

REEF is the day’s biggest gainer, up 20.23% at $$0.00602 at press time. The liquidity aggregator is up over 13% in the past seven days. Its market cap was $123.32 million.

Decentralized social

DESO is among the top gainers of the day, rising 13.3% in the past 24 hours to hit $15.12. The decentralized social network saw increased interest following the purchase of Twitter by Elon Musk, its market capitalization stood at $131.82 million.

DeXe

DEXE rose 8.72% to $3.28 at press time. The native token of the social trading platform has gained over 9% in the past 30 days. Its market cap was $119.95 million.

A star

ASTR is up 6.04% in the past 24 hours to trade at $$0.04845 at press time. The token has been on a green track since its introduction on Binance.US, rising over 30% in the past month. Its market cap was $179.31 million.

Chain link

LINK has seen gains of 6.47% in the past 24 hours, peaking above $9.20. Santiment reported that traders are massively yearning for the asset as he has seen many active addresses recently. Its market cap was $4.31 billion.

Top 5 losers

Hash stream

HFT is the biggest loser of the day, losing over 64% in the past 24 hours at $0.898. It was unclear why the token fell as it was recently listed on Binance. Its market cap was $157.45 million.

FTX Token

FTT continues its poor price performance, losing around 24% of its value in the last 24 hours. The token is currently in the eye of the storm, following Binance’s decision to liquidate its position. Its market cap was $2.26 billion.

RenderToken

The RNDR fell 22.6% to trade at $0.706 at press time. Its market cap was $179.21 million.

Mdex

MDX plunged 18.87% to $0.10388 in the last 24 hours. The DEX MA has increased by 99.5% over the past month. Its market capitalization stood at $96.07 million.

Network of masks

MASK has lost 16.9% of its value and is currently trading at $3.68 at press time. Its market capitalization was $$107.5 million.

Posted in: , Envelope
]]>
Bitcoin could become the foundation of DeFi with more single-sided liquidity pools https://beaconatbangsar.com/bitcoin-could-become-the-foundation-of-defi-with-more-single-sided-liquidity-pools/ Sat, 05 Nov 2022 22:35:52 +0000 https://beaconatbangsar.com/bitcoin-could-become-the-foundation-of-defi-with-more-single-sided-liquidity-pools/

For many years, Ethereum reigned supreme over the decentralized finance (DeFi) landscape, with blockchain serving as the go-to destination for many of the most innovative projects serving their perspective on decentralized finance. More recently, however, DeFi projects have started popping up in multiple ecosystems, challenging Ethereum’s hegemony. And, as we look to a future in which the technical problem of interoperability is solved, an unlikely candidate for the role of DeFi power player is emerging – Bitcoin (BTC).

In this future, Bitcoin potentially plays the most important role in DeFi – and not in a triumphalist and maximalist sense. On the contrary, Bitcoin can complement the rest of the crypto as the centerpiece of multi-chain DeFi. The key is to connect everything so Bitcoin can interact with Ethereum as seamlessly as iOS and Android do today.

An argument for harmonizing Bitcoin with DeFi may surprise. Commentators often contrast the established Bitcoin blockchain with its more agile and functional counterpart, Ethereum. The real “turnaround”, however, connects DeFi to Bitcoin. This gives users the best of both worlds, combining the dexterity of Ethereum with the purity of Bitcoin. The debate revolves around what a Bitcoin-enabled DeFi industry looks like or if it is even possible to accomplish.

The bumpy road to interoperability

The underlying Proof of Work (PoW) The Bitcoin network’s consensus mechanism provides a rock-solid foundation for a state-separated global payment network. Embedded IT guarantees are enough to attract institutional money, illustrating that it is good enough for powerful players in traditional finance. Although it was designed to become the money of the internet, Bitcoin’s intrinsic properties have inspired less resource-intensive networks like Ethereum.

Despite the arrival of challengers, native Ethereum projects still dominate DeFi, which remains a fragmented ecosystem of contract-based smart applications facilitating an open peer-to-peer financial system. Global developer networks are working tirelessly to bring this arrangement of decentralized applications (DApps) together, largely without success, although atomic swaps have emerged as a viable option. Typically, sub-optimal solutions such as cross-chain bridges proliferate, leaving DeFi users vulnerable to exploits, while other popular solutions such as wrapped tokens come with their own drawbacks, namely centralization.

Related: Bitcoin will rise in 2023 – but be careful what you wish for

For now, DeFi products have not been integrated with on-chain bitcoin transactions, as the bitcoin protocol does not facilitate smart contracts. This is a consequence of Bitcoin’s design, which was built with a limited scripting language to maximize security on data storage and programming capability. Remember that this material only has value insofar as it is decentralized.

Multi-channel financing without authorization

Thus, Bitcoin is incompatible with DeFi, and for some, guaranteed exposure to non-native chains via wrapped tokens like Wrapped Bitcoin (wBTC) is a step too far from core industry ethics. While this may lead some to believe that interoperability between DeFi and the Bitcoin network is a hopeless cause, there are ways to do it. For many, Bitcoin was the first step in reconceptualizing what it means to have access to financial services and experience financial independence.

Self-custody requires financial knowledge, and with more than half of users using cryptocurrencies under the age of 35, I’d bet we’re just the tip of the economic iceberg. Over time, the innovation will filter out native drawbacks of DeFi such as slippage and impermanent loss. Specifically, enabling one-sided yield for DeFi and Bitcoin would open up new possibilities that could tip the scales in favor of mainstream adoption. The single side is significantly safer, as it involves depositing a single token into a pool of liquidity as opposed to a pair of tokens.

Related: What will the cryptocurrency market look like in 2027? Here are 5 predictions

The introduction of unilateral yield in a Bitcoin-enabled DeFi ecosystem is where things start to get interesting, not just for maximalists, but for anyone with skin in the game. It would be a genuine way to increase value without compromising decentralization. The risk would be taken by the protocol allowing unilateral yield, which means that users could explore lending and borrowing options that are not currently available.

A by-product of this development would likely be the consolidation of decentralized exchange aggregators (DEXs). A saturation of aggregators splits the available liquidity, which is correlated with an increase in transaction costs. On that note, there are thousands of cryptocurrencies in the market, which means more assets, more chains, and more layers to consider. While modularity can be great for specialization, it’s high time for a “less is more” counter-movement.

Unlocking a New World of Bitcoin Opportunities

Building a seamless, distributed multi-chain financial system like this is no easy task. It reaches a level of complexity that is difficult to conceptualize. Consolidation could reduce focus enough that users can optimize for speed or security without losing access to the rest of blockchain-based finance.

Yet the impact these alternative financial technologies have had in such a short time is incredible. Bitcoin has been an integral part of the larger movement as most people’s introduction to the world of crypto. Perhaps Bitcoin can lead the next DeFi revolution, returning to cypherpunk culture and opening up new financial possibilities for everyone.

Marcel Harman is the founder and CEO of THORWallet DEX and a board member of the Crypto Valley Association. He previously co-founded the DEC Institute, which provides online certification for digital asset specialists backed by leading blockchain universities. He graduated from the University of Zurich in 2012 with a Master of Arts in Banking and Finance.

This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

]]>
Talos integrates crypto liquidity from Amber Group’s WhaleFin https://beaconatbangsar.com/talos-integrates-crypto-liquidity-from-amber-groups-whalefin/ Thu, 03 Nov 2022 11:58:25 +0000 https://beaconatbangsar.com/talos-integrates-crypto-liquidity-from-amber-groups-whalefin/

Talos has welcomed Amber Group to its partner network of over 40 liquidity platforms which includes leading exchanges such as Binance, Coinbase and FTX, as well as major OTCs and market markers.

The platform targets large and sophisticated market participants and their end customers and provides a trading platform, lending market, data and analytics, as well as portfolio and settlement tools. These are all offered directly or through white label service providers.

With Talos, clients can conduct end-to-end transactions without worrying about unnecessary intermediary risks or potential conflicts of interest.

Talos adds cash from WhaleFin as part of APAC expansion

The partnership will integrate the liquidity venue of Amber Group’s flagship digital asset platform, WhaleFin, into Talos’ market-leading institutional trading platform, facilitating greater access to Amber Group’s liquidity. .

The addition of cash from Amber Grou comes at a good time as Talos continues to expand its business and solidify its presence in Asia-Pacific, a region where the digital asset industry is booming.

The integration illustrates both companies’ commitment to driving institutional adoption of digital assets and also addresses the growing need for advanced trading solutions required by sophisticated crypto natives and traditional capital markets businesses. The partnership capitalizes on the synergies between the offerings of Talos and Amber Group by

Combining Talos’ end-to-end digital asset trading technology services with Amber Group’s institutional-grade liquidity venue, WhaleFin, will ultimately benefit clients who tap into that liquidity, crypto-natives. and traditional capital markets companies.

Backed by Paradigm, Dragonfly, Pantera, Polychain, Sequoia and Tiger Global, Amber Group has offices in Asia, Europe and the Americas and provides digital asset services spanning investing, funding and trading.

WhaleFin entered Japan and sponsors Atlético Madrid

In February, Amber Group’s subsidiary WhaleFin Japan acquired crypto asset exchange DeCurret Inc. in a move that marks the group’s entry into Japan, having acquired an exchange services provider from crypto assets (CAESP) registered with the Japan Financial Services Agency (FSA).

DeCurret is one of 30 registered CAESPs operating in Japan since 2018 and is backed by 35 shareholders, including leading Japanese financial institutions and corporations.

The crypto-asset exchange pioneered the introduction of an e-money payment service for crypto-assets and led the industry in making cryptocurrency more accessible to consumers.

The acquisition is expected to catalyze the adoption of digital assets in the country, given the sevenfold increase in crypto deposits in 2021 and Amber’s management of $5 billion in digital assets on its platform.

In July, Amber Group became the official and lead global partner of Atlético Madrid in a sponsorship deal to boost the brand of the company’s flagship digital asset platform, WhaleFin.

As part of the sponsorship deal, WhaleFin will receive significant brand exposure as it will appear on the front of the team’s gaming kits. The company will also be the Official Exclusive Digital Wealth and Digital Lifestyle Partner of Atlético de Madrid.

Building Institutional Confidence in Crypto Assets

Samar Sen, Head of APAC at Talos, said, “Major institutional investors trading on our platform will always need connectivity with the world’s best liquidity providers. Partnering with Amber Group not only gives them another strong place to work, but it’s a natural extension of our core mission of making it easier for institutions to connect to digital asset markets in ways that are safe, scalable, and familiar. As a market-leading provider of trading technology that powers institutional access to digital assets, we are proud to partner with Amber Group and support the global maturation of the digital asset ecosystem.

“Despite the current market conditions, we continue to see increasing adoption of digital assets by both buy-side and sell-side institutions – their long-term views on the potential of digital assets are undiminished, and many of these Institutional service providers use it in time to build their product offerings ahead of the next growth cycle, and based on demand from their end customers.

Annabelle Huang, Managing Partner at Amber Group, said, “Client demand for institutional-grade aggregated liquidity providers is indicative of the continued evolution of digital assets as a maturing asset class. As we mark a new chapter for the growth of digital assets globally, we are excited to integrate the best of our liquidity offering with like-minded ecosystem peers such as Talos. This partnership lays the foundation for us to continue to build institutional trust in crypto assets through easy access to Talos’ trusted trading technology and Amber Group’s liquidity offering – all while complementing our commitment to providing best-in-class service to our customers, whether through superior block pricing or greater transparency for all.

Sophia Cui, Product Lead (Connectivity) at Talos, added: “Today’s digital asset traders demand a better experience – one that offers increased security, scalability, reliability and usability, combined with familiarity with traditional capital market trading systems. Our partnership with Amber Group will remove the current barriers to entry for institutions, providing them with powerful, sophisticated and standardized institutional-grade digital asset trading technology with unparalleled performance that is already seamlessly connected to the liquidity that they wish.

]]>
Viridian Cannabis Credit Rankings Prioritize Liquidity – Acreage Holdings (OTC:ACRDF), TerrAscend (OTC:TRSSF) https://beaconatbangsar.com/viridian-cannabis-credit-rankings-prioritize-liquidity-acreage-holdings-otcacrdf-terrascend-otctrssf/ Mon, 31 Oct 2022 17:01:55 +0000 https://beaconatbangsar.com/viridian-cannabis-credit-rankings-prioritize-liquidity-acreage-holdings-otcacrdf-terrascend-otctrssf/

Over the past two weeks, TerrAscend TRSSFVerano VRNOFand Area ACRDF secured new credit agreements with very low interest rates, demonstrating that Tier 1 MSOs still have strong, albeit costly, access to credit markets.

Small public and private companies have limited access to debt, and rates are likely to be high and contain equity for many of these companies. Businesses under liquidity pressure, including maturing debt, may be subject to effective costs of up to 30%.

Therefore, we are monitoring liquidity more carefully and have recently adjusted the Viridian Credit Tracker Scoring model to give a higher weight to this factor.

The companies on the chart are the 18 US grow and retail companies in the Viridian database with market capitalizations between $10M and $200.

The green bars in the graph show the Viridian credit score for each company ranked in ascending order of credit quality.

The model uses 11 financial and market-based variables to assess: four aspects of credit quality: liquidity, leverage, profitability and size.

The Viridian credit model is particularly valuable for companies of this size because ten out of eighteen do not have analyst coverage.

The purple line shows the relative ranking on our liquidity score, which takes into account the company’s liquid assets, free cash flow consumption, and short-term liabilities, including debt maturities. Companies with liquidity below 12 will likely need additional funding over the next year. Ten of the eighteen companies on the chart posted negative operating cash flow in the last quarter.

The orange line shows the Viridian Leverage rank. Rankings below ten typically coincide with debt-to-market capitalization metrics above 3x, which we consider indicative of financial stress.

Viridian’s multi-factor model takes into account the trade-offs inherent in each company’s financial situation. For example, MariMed CSE obtains a low level of liquidity and will likely require short-term funding; however, it has one of the lowest overall leverage ratings, giving us confidence that it should be able to secure funding.

The tight capital market environment makes it essential that debt and equity investors closely monitor credit quality, and the Viridian Credit Tracker model can be a valuable tool.

The Viridian Capital Chart of the Week highlights key investment, valuation, and M&A trends from the Viridian Cannabis Deal Tracker.

The Viridian Cannabis Transaction Tracking provides the market insights that cannabis companies, investors, and acquirers use to make informed decisions about capital allocation and M&A strategy. The Deal Tracker is a proprietary news service that monitors capital raising and M&A activity in the legal cannabis, CBD and psychedelic industries. Each week, the Tracker aggregates and analyzes all completed deals and segments each one based on key metrics:

  • Deals by industry sector (to track the flow of capital and M&A deals by any of 12 industries – from culture to brands to software)

  • Deal structure (equity/debt for capital raises, cash/stock/compensation for M&As) Status of company announcing deal (public vs. private)

  • Agents of the Operation (Issuer/Investor/Lender/Acquirer) Main terms of the operation (Pricing and Valuation)

  • Key deal terms (deal size, valuation, price, warrants, cost of capital)

  • Transactions by issuer/buyer/seller location (to track capital flow and M&A transactions by state and country)

  • Credit ratings (leverage and liquidity ratios)

Since its inception in 2015, the Viridian Cannabis Deal Tracker has tracked and analyzed over 2,500 fundraisings and 1,000 M&A deals totaling over $50 billion in total value.

The previous article comes from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

]]>
Ripple Introduces On-Demand Liquidity to France and Sweden By CoinEdition https://beaconatbangsar.com/ripple-introduces-on-demand-liquidity-to-france-and-sweden-by-coinedition/ Thu, 27 Oct 2022 13:00:00 +0000 https://beaconatbangsar.com/ripple-introduces-on-demand-liquidity-to-france-and-sweden-by-coinedition/
Ripple introduces on-demand <a class=liquidity in France and Sweden” id=”carouselImage” src=”https://i-invdn-com.investing.com/news/Ripple_800x533_L_1556445395.jpg” style=”visibility:hidden”/>
Ripple introduces on-demand liquidity in France and Sweden
  • Companies in Sweden and France are immediately implementing crypto solutions.
  • A partnership between and the Swedish money transfer company Xbaht has been made public.
  • Consumers and businesses in Sweden and France can use Ripple to transfer real-time payments across borders.

The Stockholm-based Swedish investment firm has partnered with Ripple to provide on-demand liquidity to its institutional investors. This means that the investment firm will instantly convert XRP to Swedish Krona and vice versa, allowing its investors to buy and sell XRP without waiting for settlement.

According to Ripple’s New Value 2022 report, 70% of respondents from European financial institutions believed that blockchain, the underlying technology that powers Ripple’s cryptocurrency solutions, would have a major or significant impact on their industry in the future. over the next five years.

But thanks to Ripple’s two most recent deals, Swedish and French companies are immediately adopting crypto solutions rather than waiting for the next five years.

Lemonway, a pan-European payment company in Paris, has been working with Ripple since 2020 to streamline cross-border payments and reduce payment times for their consumers.

Lemonway is now using Ripple’s On-Demand Liquidity (ODL) service to improve its internal cash management, further strengthening its leadership position in the payments industry.

Lemonway, the first French online marketplace payment provider to use ODL, says it can increase operational efficiency by removing the requirement to pre-fund overseas destination accounts. This allows them to use otherwise trapped funds to expand their business and enter new markets.

Additionally, Ripple has collaborated with Swedish money transfer service Xbaht to offer fast and inexpensive retail transactions.

By using blockchain technology and cryptography to create practical use cases, Ripple has established itself as the go-to partner for businesses looking to access global crypto liquidity.

This eliminates the traditional frictions associated with cross-border payments, such as long settlement times, lack of transparency and high fees.

Through these partnerships, customers and businesses in Sweden and France can send real-time payments across borders using Ripple.

The post Ripple introduces on-demand liquidity in France and Sweden appeared first on Coin Edition.

See the original on CoinEdition

]]>