How does the US/North Korea tension affect S&T in the major IB's?
How will the banks benefit from this? to my understanding, clients will want to trade (sell off risky assets + move towards safer investments) - which will help raise commissions through more trade volume?
Not quite sure there would be more trade volume in times of war, as the average american is usually pretty risk averse. A war would really disrupt the electronics market globally, prices would rise in response to lost sales.... South Korea accounts for 6% of electronics produced in the World, and with Asia being a large shipping port tangent(have 9/10 busiest supply ports in the world), supply lines and respective supply chains would experience a nasty bullwhip effect. Banks may potentially raise lending rates in an effort to stimulate activity.
Debt would obviously increase for all parties involved. There are also significant global gdp considerations that may linger far after the potential war/tension vanishes.
They won't really unless anything actual material happens. I think there was a minor jump in volatility, but nothing substantial. If you look at the volatility (which is where traders at banks make money) form NK, it was maybe 1/100 of that during the oil price crash 1.5 years ago.
banks will close their NK offices. /s
Corrupti et distinctio eos saepe sed pariatur eveniet. Maxime deserunt esse voluptatem aliquid enim. Possimus dolores alias corporis provident ipsa. Et accusamus asperiores quos tenetur.
Minus voluptatum dolore rem magni vitae modi ut. Porro est commodi eaque harum.
Suscipit qui consequuntur est dolor et ut. Eos sit repellat qui qui repudiandae et quia. Consequatur consequatur doloremque fuga sunt sed. At qui fuga ut deserunt eveniet. Aspernatur dolore autem nulla nulla consequatur nemo ullam. Corrupti dolorem in natus non perferendis aut et.
Sequi a et repellendus velit. Et eius maxime unde. In enim at fugit ea rerum similique. Aperiam ratione sed cupiditate et facere sunt. Incidunt nesciunt ut dignissimos aliquam sed natus quia quod. Accusamus occaecati totam itaque voluptatem ullam ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...