Microsoft just revealed its first industry-specific cloud and these recent hires hint which industries could be next (MSFT)
Friday, 22 May 2020, 18:52:03
Microsoft introduced a cloud initiative tailored specifically for the healthcare industry during the company’s Build developer conference this week, following similar initiatives from Google, IBM, and Amazon. It’s Microsoft’s first industry-specific cloud, and the company hired Greg Moore, the executive running it, in 2019. The company also recently hired executives with expertise in the financial services and energy industry, which suggests that specific clouds for those industries could be coming next. The push towards industry-specific offerings also is indicative of what one Microsoft executive said is one of the biggest changes Nadella has made: changing the company from a “horizontal” one that produces products for general purposes to one with a focus on verticals, like the healthcare industry. View Business Insider’s homepage for more stories. Microsoft introduced its first industry-specific cloud this week — Microsoft Cloud for Healthcare — and the company’s recent hires suggest that the financial services and energy industries could be next.
— Business Insider
Investors are clamoring for ‘pandemic bonds.’ Here’s how Wall Street banks are revamping their businesses and senior execs are devising ways to capture the surging demand.
Friday, 22 May 2020, 18:49:00
Investors have been eagerly buying up pandemic bonds — debt instruments directly financing efforts to fight Covid-19. Bonds tied to financing social projects like housing, healthcare, and education have long lagged beyond their environmental cousin, the green bond. But social bonds have surged in response to the coronavirus outbreak, and Wall Street is betting the enthusiasm for such products will increase over the long haul as a result. Wall Street banks in recent weeks have have unveiled new business units, appointed new leaders, and convened senior execs to devise ways to meet the growing demand for socially minded investments. Click here for more BI Prime stories . Investors are clamoring for ‘pandemic bonds’ linked to the coronavirus recovery effort, and Wall Street banks are preparing for a deluge of similar socially-minded financing opportunities in response to the pandemic. Investments that fund Environmental, Social, and Governance (ESG) projects have gained momentum in recent years — spurred on by shareholders, like BlackRock , that have demanded companies start accounting for their impact on society.
— Business Insider
Fed Balance Sheet Rises Above $7 Trillion; Bond ETF Holdings HIt $1.5 Billion
Friday, 22 May 2020, 00:26:12
Fed Balance Sheet Rises Above $7 Trillion; Bond ETF Holdings HIt $1.5 Billion Tyler Durden Thu, 05/21/2020 – 20:26 After crossing back above the $4 trillion mark back in October 2019 in the aftermath of the JPMorgan repo bailout , also known as “No QE”, the Fed’s balance sheet is nearly double that amount a little over half a year later, with the Fed reporting in its latest H.4.1 report that as of May 20, 2020, its total assets rose above $7 trillion for the first time ever, an increase of $103 billion in the past week to $7,038 billion. Putting the increase in context, the Fed’s balance sheet hit $6 trillion on April 2 . The increase was mostly the result of a $79BN increase in settled MBS purchases as well as $32BN in Treasury purchases, while there was no change in the Fed’s holdings in its commercial paper facility. While the Fed’s balance sheet is broadly expected to hit $12 trillion in the next 12 months, the fact that the expansion has slowed down substantially is a problem, especially after the Fed tapered its daily QE to just $6 billion last week , and JPMorgan expects it to further shrink to just $5 billion per day when the new schedule is published tomorrow.
— Zero Hedge
BANK OF AMERICA: Stocks haven’t been this attractive relative to bonds in 70 years, suggesting further gains are coming
Thursday, 21 May 2020, 17:12:24
Stocks haven’t been this attractive relative to bonds in over 70 years, according to a note from Bank of America published on Thursday. The current dividend yield of the S&P 500 is nearly triple that of the 10-year Treasury yield, which has historically been followed by stocks outperforming bonds over the next 12 months, the firm notes. Still, despite the relative attractiveness of stocks over bonds, the highly anticipated “Great Rotation” of investors moving from bonds into stocks has yet to occur, according to fund flows. Visit the Business Insider homepage for more stories . Stocks haven’t been this attractive relative to bonds in over 70 years. And if history is any guide, that could signal further gains ahead for stocks, according to a Bank of America note published on Thursday. The S&P 500 ‘s current dividend yield of around 2% is triple that of the 10-year US Treasury , which yielded 0.66% as of Thursday morning. In the current cycle, the previous three times stock yields have outpaced their 10-year Treasury counterpart, equities have outperformed bonds by 31 percentage points on average over the subsequent 12 months, according to BofA.
— Business Insider
‘All hands on deck:’ JPMorgan and Bank of America are reassigning staff to focus on troubled loans and companies amid a wave of pandemic-driven disruptions
Thursday, 21 May 2020, 15:27:02
Some of the largest US banks have been shifting employees into roles restructuring troubled loans, according to people with knowledge of their policies. Others are lending a hand with an influx of new loan requests, including credits for troubled companies seeking cash, some of the people said. “It’s all hands on deck and everyone is doing what they can,” one of the people said. Some of the employees had been working on examination activities, and got freed up when the Federal Reserve called a halt to some exams in late March. “The regulators don’t want regulation to be the excuse why banks aren’t doing their best to keep their employees safe, and help their customers and clients and counterparties work through these difficult times,” said PwC’s Adam Gilbert. Click here for more BI Prime stories. Some of the largest US banks have started shifting employees into restructuring roles as they take steps to handle a wave of troubled or defaulted loans, according to people with knowledge of their policies.
— Business Insider