Tuesday, February 19, 2019

Offshore finance centers bracing for substance legislation impact

Cayman’s government and financial services industry professionals have had mixed reactions to the territory’s recently passed economic substance legislation, with some expressing cautious optimism that the new laws will increase investment in the islands, while others are bracing for an exodus of companies.

What’s brewing in housing?

Financial markets were hit with an onslaught of weak economic news across the housing sector recently.

Economist: Close gender gap to boost economy

Cayman Islands women are a significant under-used resource that could fuel further growth in the islands economy, according to the keynote speaker at the annual tourism conference last month.

CFA conference: The beginning of deglobalization or just a blip?

Bloomberg economist Carl J. Riccadonna said the current “trade war” was more a “trade skirmish” and that globalization was just slowing. Michael Pettis, professor of finance at Peking University’s Guanghua School of Management, in contrast, believes that we have entered a phase of deglobalization.

Ironshore: Cayman’s nascent pharma giant

Cayman is globally renowned for its tourism and financial services, but is not known for having a pharmaceutical industry.

Offshore M&A deals drop; Cayman remains top center

The Cayman Islands saw more mergers and acquisition transactions than any other offshore jurisdiction in the first half of 2018, as the total value of Cayman deals increased by nearly 50 percent over the second half of 2017.

Interest Rates: The yield curve conundrum

The treasury yield curve has garnered much interest in the news recently. The past few weeks have witnessed a narrowing of the gap between short- and long-term rates dangerously approaching a proverbial inversion. So what is a treasury yield curve? As an investor, why should it matter?

New rules shake up anti-money laundering services

Cayman’s fund industry is facing significant changes under new regulations to fight money laundering and the financing of terrorism.

The changing landscape of litigation funding in Cayman

Businesses that litigate in the Cayman Islands courts have historically had few alternatives to the traditional funding model, i.e., paying a law firm a fixed hourly rate.

Trade tensions – unintended consequences

It is common rhetoric to describe U.S. President Donald Trump as a non-conformist. President Trump came out of the gate swinging, dismantling long-standing trade agreements and partnerships with neighbours, allies and the world’s second largest economy.

Rebalancing the BVI economy from the financial services industry to tourism

There are very serious economic and financial implications for the British Virgin Islands as a consequence of the United Kingdom’s decision to impose public registers of beneficial ownership on the Overseas Territories.

Cryptocurrencies no threat to financial stability, yet

Cryptocurrencies are currently not a threat to financial stability, according to the Financial Stability Board, a global regulator that advises the G-20 group of countries.

Gov’t plans public consultation on ‘economic substance’ changes

When late last year, Cayman avoided being placed on an EU tax blacklist by committing to remedy, before the end of 2018, what the EU called a lack of economic substance of Cayman-based entities, few knew what exactly the Cayman Islands government had promised to do.

Disaster Management: Hurricanes put Caribbean newsrooms to the test

A year on from the devastating 2017 hurricane season – one with 17 named storms, 10 hurricanes and six major hurricanes – many Caribbean and Gulf communities continue to recover.

Economy: Time to say goodbye to Goldilocks?

It is widely reported that for much of the past decade, U.S. investors have enjoyed strong returns in balanced portfolios. When looked at in historical context, it becomes apparent that “strong returns” is actually an inadequate description. A balanced portfolio of 60 percent U.S. equities/40 percent 10-year U.S. treasuries has now gone just over nine years without a 10 percent drawdown in real terms, which has eclipsed the previous record set in the roaring 1920s. While returns have not been as strong as they were then, at 11 percent per annum versus 19 percent, many investors are now questioning how much longer there is left in this cycle.

Is global growth stuttering?

2017 can be characterized as a year that should be celebrated. The world’s economy enjoyed synchronized global growth, with all major developed economies reporting positive GDP growth.

Giving back: Driving donations

Island Heritage’s involvement in the community runs a spectrum of activities, but one of its most visible corporate social responsibility initiatives is its annual CharityDrive.

Economist: Moderate US growth to impact Cayman

Moderate growth in the U.S. in the context of a wider global slowdown led by reduced consumer demand is going to impact Cayman, especially in the tourism sector, according to Lindsey Piegza, chief economist at Stifel Fixed Income.

Booming real estate industry reflects economic growth

Finance Minister Roy McTaggart has recently touted the 2.9-percent economic growth Cayman experienced last year, but to many that number is just an abstraction.

Maritime and Aviation City welcomes first zone company

Cayman Maritime & Aviation City and The Civil Aviation Authority of the Cayman Islands announced the registration of its first special economic zone company in May.
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