Attention

Survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD) - March 2024

Retrieved on: 
Thursday, April 18, 2024

Survey on credit terms and

Key Points: 
    • Survey on credit terms and
      conditions in euro-denominated
      securities financing and OTC
      derivatives markets (SESFOD)
      March 2024
      The Eurosystem conducts a three-monthly qualitative survey on credit terms and
      conditions in euro-denominated securities financing and over-the-counter (OTC)
      derivatives markets.
    • The survey questions are grouped into three sections:
      1.

      counterparty types ? credit terms and conditions for various counterparty
      types in both securities financing and OTC derivatives markets;

      2.

      securities financing ? financing conditions for various collateral types;

      3.

      non-centrally cleared OTC derivatives ? credit terms and conditions for
      various derivative types.

    • The survey focuses on euro-denominated instruments in securities financing and
      OTC derivatives markets.
    • For securities financing, the survey refers to the
      euro-denominated securities against which financing is provided, rather than the
      currency of the loan.
    • Reporting institutions should report on their global credit terms, so the survey is
      aimed at senior credit officers responsible for maintaining an overview of the
      management of credit risks.
    • SESFOD March 2024

      2

      March 2024 SESFOD results
      (Review period from December 2023 to February 2024)
      The March 2024 Survey on credit terms and conditions in euro-denominated
      securities financing and OTC derivatives markets (SESFOD) reports qualitative
      changes in credit terms between December 2023 and February 2024.

    • Looking at credit terms and conditions for the various types of non-centrally cleared
      OTC derivative, initial margin requirements increased slightly for all derivative types.
    • Survey respondents reported mostly unchanged conditions as regards the maximum
      amount of exposure and the maximum maturity of trades.
    • Moreover, they reported that the volume of valuation disputes had
      declined for all derivative types except credit derivatives.
    • The survey asked respondents to compare credit terms
      and conditions on the cut-off date for the March 2024 survey round (i.e.
    • Compared with the
      previous year, overall terms and conditions for securities financing and OTC
      derivatives transactions had eased somewhat across all counterparties, while credit
      standards for funding secured against various types of collateral and non-price terms
      in OTC derivatives markets were generally tighter.
    • Credit terms and conditions for various counterparty types in both
      securities financing and OTC derivatives markets
      Overall credit terms and conditions eased between December 2023 and
      February 2024 (Chart A).
    • The overall easing of conditions masked some
      heterogeneity between price and non-price terms, and across different types of
      counterparty, though reported changes were relatively small.
    • Credit terms and conditions for various types of non-centrally
      cleared OTC derivative
      Initial margin requirements increased slightly for all derivative types.
    • Meanwhile, they reported
      unchanged conditions for credit derivatives referencing sovereigns and commodities,
      as well as a slight deterioration for credit derivatives referencing corporates and
      structured credit products.
    • The survey asked respondents to compare the credit terms and conditions observed
      on the cut-off date for the March 2024 survey (i.e.
    • Compared with the previous year, overall terms and conditions for securities
      financing and OTC derivatives transactions had eased somewhat across all
      counterparties.
    • Survey respondents reported that non-price credit terms in OTC derivatives
      markets had tightened somewhat for almost all types of derivative relative to
      the previous year.

Transactional demand for central bank digital currency

Retrieved on: 
Thursday, April 18, 2024

Key Points: 

    To understand the risks posed by AI, follow the money

    Retrieved on: 
    Wednesday, April 10, 2024

    Shortly thereafter, the consensus switched to fears of an imminent nuclear holocaust.

    Key Points: 
    • Shortly thereafter, the consensus switched to fears of an imminent nuclear holocaust.
    • Similarly, today’s experts warn that an artificial general intelligence (AGI) doomsday is imminent.
    • It’s difficult to argue with David Collingridge’s influential thesis that attempting to predict the risks posed by new technologies is a fool’s errand.
    • Focusing on the economic risks from AI is not simply about preventing “monopoly,” “self-preferencing,” or “Big Tech dominance”.
    • It’s about ensuring that the economic environment facilitating innovation is not incentivising hard-to-predict technological risks as companies “move fast and break things” in a race for profit or market dominance.
    • OpenAI is already becoming a dominant player with US$2 billion (£1.6 billion) in annual sales and millions of users.

    Degrading quality for higher profit

    • The problems fostered by social media, search, and recommendation algorithms was never an engineering issue, but one of financial incentives (of profit growth) not aligning with algorithms’ safe, effective, and equitable deployment.
    • For digital platforms, extracting digital rents usually entails degrading the quality of information shown to the user, on the basis of them “owning” access to a mass of customers.
    • But over time, a misalignment between the initial promise of them providing user value and the need to expand profit margins as growth slows has driven bad platform behaviour.

    Amazon’s advertising

    • In our research on Amazon, we found that users still tend to click on the product results at the top of the page, even when they are no longer the best results but instead paid advertising placements.
    • For social media platforms, this was addictive content to increase time spent on platform at any cost to user health.
    • In the process, profits and profit margins have become concentrated in a few platforms’ hands, making innovation by outside companies harder.
    • Amazon’s most recent quarterly disclosures (Q4, 2023), shows year-on-year growth in online sales of 9%, but growth in fees of 20% (third-party seller services) and 27% (advertising sales).
    • Algorithms have become market gatekeepers and value allocators, and are now becoming producers and arbiters of knowledge.

    Risks posed by the next generation of AI

    • But how much greater are the risks for the next generation of AI systems?
    • Thankfully, society is not helpless in shaping the economic risks that invariably arise after each new innovation.
    • Risks brought about from the economic environment in which innovation occurs are not immutable.
    • Market structure is shaped by regulators and a platform’s algorithmic institutions (especially its algorithms which make market-like allocations).
    • What role might interoperability and open source play in keeping the AI industry a more competitive and inclusive market?
    • Instead, we should try to recalibrate the economic incentives underpinning today’s innovations, away from risky uses of AI technology and towards open, accountable, AI algorithms that support and disperse value equitably.
    • Ilan Strauss receives funding from The Omidyar Network through the UCL IIPP research project on algorithmic rents Mariana Mazzucato received funding for this project from the Omidyar Foundation.
    • Rufus Rock received funding from the Omidyar Network whilst pursuing the research referenced in this piece.

    How your vision can predict dementia 12 years before it is diagnosed – new study

    Retrieved on: 
    Wednesday, April 10, 2024

    Our latest study shows that a loss of visual sensitivity can predict dementia 12 years before it is diagnosed.

    Key Points: 
    • Our latest study shows that a loss of visual sensitivity can predict dementia 12 years before it is diagnosed.
    • Our research was based on 8,623 healthy people in Norfolk, England, who were followed up for many years.
    • By the end of the study, 537 participants had developed dementia, so we could see what factors might have preceded this diagnosis.
    • People who would develop dementia were much slower to see this triangle on the screen than people who would remain without dementia.

    Recognising faces

    • We have some evidence which suggests that people with dementia tend to process new people’s faces inefficiently.
    • In other words, they don’t follow the usual pattern of scanning the face of the person they are talking to.
    • So this early issue in not recognising people you have just met could be related to ineffective eye movement for new faces, rather than being a pure memory disorder.

    Can eye movement improve memory?

    • Previous research on the matter is mixed, but some studies found that eye movement can improve memory.
    • In other studies, eye movements from left to right and right to left done quickly (two eye movements per second) were found to improve autobiographical memory (your life story).
    • Also, using deficits in eye movements as a diagnostic is not a regular feature, despite the possibilities in eye movement technology.


    Eef Hogervorst receives funding from the Dunhill Medical Trust [email protected] receives funding from Road Safety Trust. He is affiliated with Applied Vision Association. Ahmet Begde does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    Young people are getting unhappier – a lack of childhood freedom and independence may be partly to blame

    Retrieved on: 
    Wednesday, April 10, 2024

    Experts often highlight social media and harsh economic times as key reasons why young people are getting unhappier.

    Key Points: 
    • Experts often highlight social media and harsh economic times as key reasons why young people are getting unhappier.
    • Younger generations have less freedom and independence than previous generations did.
    • The lack of childhood freedom isn’t just a result of parental control.

    Emotional, social and cognitive effects

    • Psychologist Jean Piaget emphasised the importance of exploration and experimentation in cognitive development in the 1950s.
    • By restricting children’s freedom to explore and take age-appropriate risks, we deprive them of opportunities for intellectual curiosity and innovation.
    • The decline in independence can have implications for social and emotional development.
    • Research highlights the importance of peer interactions in shaping social competence and emotional intelligence.
    • By orchestrating play dates and entertainment, parents may therefore inadvertently limit their children’s ability to navigate social dynamics.

    Age-appropriate freedom

    • Evidence supports the idea that freedom and independence is crucial for the happiness and wellbeing of young people.
    • A five-year-old, for example, can be allowed and encouraged to butter their own toast, make their bed, or play on their own in the garden.
    • A 10-year-old, meanwhile, should be able to walk to and from school on their own, be responsible for their homework and keep their space tidy.


    Fiorentina Sterkaj does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    From side hustles to sleeping streams: The truth behind the passive income hype

    Retrieved on: 
    Wednesday, April 10, 2024

    Thousands of users regularly share their expertise, tips and advice for how their followers can, theoretically, achieve the same level of passive income without lifting a finger.

    Key Points: 
    • Thousands of users regularly share their expertise, tips and advice for how their followers can, theoretically, achieve the same level of passive income without lifting a finger.
    • The passive income subreddit has nearly half a million members and the #passiveincome hashtag on TikTok has 1.2 million posts and billions of views.
    • Given the current state of the economy and governmental policy, it’s unsurprising that so many are lured by the appeal of passive income.

    Earning while you sleep

    • They see influencers sharing their successes (and very rarely their failures) and are motivated to try their strategies out for themselves.
    • Various passive income subcultures have emerged, from finance bro hustle gurus to young women peddling money-making credit card schemes to their followers.
    • As research I conducted with sociologist Karen Gregory has shown, this has been further literalized by livestreamers on platforms like Twitch.
    • These streamers draw in more viewers and attention by livestreaming themselves sleeping, as fans donate money, promote their content and buy emojis or other perks throughout the broadcast.

    Always be grinding

    • The idea of passive income is often glamorized, but the reality is that many of these ventures require significant effort.
    • Indeed, the understanding of what passive income is has transformed wildly, from what the Internal Revenue Service describes as “activities in which you don’t materially participate” to re-appropriating terms like “leveraged income” to refer to maintaining Airbnb rental properties as being somehow passive.
    • Some of it is surely good old-fashioned aspirational content and marketing, as journalist Rebecca Jennings wrote in a March 2023 article for Vox.
    • As a result, the concept of participating in multiple income streams to protect one’s self from financial vulnerability is re-framed as not only strategic but passive.
    • Sure, you can break up your labour into different entrepreneurial paths, but you can also, ideally, start them up and then let them go without much maintenance.

    A new gilded age?

    • Only 20 per cent of Americans make passive income, and almost entirely via dividends, interest or rental properties (although whether rental properties count as truly passive income is still up for debate).
    • Canadian numbers are harder to come by, but Finance Canada estimated 83 per cent of taxable passive income was held by individuals in the top one per cent income range in 2017.
    • Nevertheless, in a new gilded age defined and structured by wealth that is passively inherited or transferred and rarely distributed, the rest of us can’t help but take notice of a platform economy waiting to be exploited — and why not?


    Jake Pitre received funding from the Mitacs Globalink Research Award for portions of this research.

    BT CBD CORP Unveils a Revolutionary THCA Flower Collection, Setting New Standards of Quality and Purity

    Retrieved on: 
    Friday, April 5, 2024

    Raleigh, North Carolina--(Newsfile Corp. - April 5, 2024) - With the latest developments, BT CBD CORP unveils a cutting-edge THCA flower collection. The company aims to provide pure and potent Hemp Flowers sourced from certified organic farms. With its high-quality THCA flower and a wide range of premium CBD products, the company aims to ensure that every product meets high standards of quality and potency.

    Key Points: 
    • Summary: BT CBD CORP, operating under the brand name Black Tie CBD, has been setting the standard for excellence in the smokable hemp industry.
    • Raleigh, North Carolina--(Newsfile Corp. - April 5, 2024) - With the latest developments, BT CBD CORP unveils a cutting-edge THCA flower collection.
    • With its high-quality THCA flower and a wide range of premium CBD products, the company aims to ensure that every product meets high standards of quality and potency.
    • With the FRUITY LOOPS (INDOOR), THC-A Flower underscores BT CBD CORP's reputation for delivering top-tier products that exceed industry standards.

    PiXate Creative Revolutionizes Visual Marketing for Manufacturers with Advanced 3D Product Rendering

    Retrieved on: 
    Thursday, April 4, 2024

    New Ipswich, New Hampshire--(Newsfile Corp. - April 4, 2024) - PiXate Creative, a renowned 3D visualization and illustration company, is set to revolutionize the world of visual marketing for manufacturers with its advanced 3D product rendering services.

    Key Points: 
    • New Ipswich, New Hampshire--(Newsfile Corp. - April 4, 2024) - PiXate Creative, a renowned 3D visualization and illustration company, is set to revolutionize the world of visual marketing for manufacturers with its advanced 3D product rendering services.
    • As an expert in architectural rendering, PiXate Creative is expanding its portfolio to help manufacturers captivate their audience and elevate their marketing strategies to new heights.
    • In today's competitive market, manufacturers understand the crucial role visual appeal plays in capturing the attention of potential customers.
    • Unlike traditional marketing methods, which often rely on live demonstrations or costly prototypes, PiXate Creative's 3D product rendering offers a cost-effective solution that doesn't compromise quality.

    GWM Makes a Stunning Appearance at The Bangkok International Motor Show, Accelerating the Brand's Ecological Globalization

    Retrieved on: 
    Tuesday, March 26, 2024

    At the press conference, GWM presented the GWM SAHAR POER model for the Thai market and announced its pre-sale.

    Key Points: 
    • At the press conference, GWM presented the GWM SAHAR POER model for the Thai market and announced its pre-sale.
    • GWM POER has always been the leader of pickup trucks in China, with a market share of more than 50% and global sales of more than 2.55 million units.
    • The GWM SAHAR POER HEV is both the beginning of a new era and a tribute to tradition.
    • GWM aims to achieve better market performance while deepening its "ecological globalization" strategy.