What we’re reading (2/21)
“Centerview Settles Suit Over Young Banker Hours” (Wall Street Journal). “The trial had been set to begin Monday and was expected to feature testimony from senior executives at Centerview, including the firm’s co-president Tony Kim, as well as Shiber. Bankers across Wall Street have been following the lawsuit and anticipating the trial and its implications for the industry. ‘There is a genuine dispute of fact whether the ability to be available at all hours of the day and to work long, unpredictable hours is an essential function of the analyst role,’ Judge Edgardo Ramos wrote in an October opinion detailing why the case would go to trial.”
“Europe’s Military Buildup Could Create A Bond Market Powerhouse That Threatens U.S. Treasurys” (MarketWatch). “As countries rush to finance defense spending and build resilience, the fiscal and financial consequences are only beginning to surface. Long-term sovereign yields in advanced economies — from Germany to Japan—are rising to levels last seen decades ago. The risk for the U.S. is that such dynamics will act as a gravitational pull on domestic long-term yields as the Trump administration focuses on lowering borrowing costs for households to address an affordability crisis.”
“Christine Lagarde Isn’t Done Trying To Fix Europe” (Wall Street Journal). “In a sign that Lagarde’s patience with the EU’s slow progress is wearing thin, this month she sent a checklist of five urgently needed reforms to EU leaders, with the subject line: “time for action,” according to a copy seen by the Journal. Among them: unifying capital markets, harmonizing corporate regulations and coordinating research and development spending.”
“US Private Sector Balance Sheets In Excellent Shape” (Torsten Slok). “The private sector in the US is in really good shape. Households have been deleveraging since the 2008 financial crisis, see the first chart. The corporate sector has been deleveraging since COVID…[u]nfortunately, the government balance sheet is not in good shape. Government debt to GDP has increased steadily from 40% of GDP in 2007 to more than 100% today, see the third chart.”
“Oil Analysts Say There Is A Supply Glut — Why That Hasn't Translated To Lower Prices This Year” (Yahoo! Finance). “Coming into 2026, the consensus view among oil analysts was that the crude market was entering a period of deep oversupply, likely to keep depressing prices throughout the year. In 2025, oil prices fell by roughly 20% as the glut widened. Instead, oil prices have seen an unexpected rally through the start of the year on a combination of geopolitical shocks and stronger-than-expected demand.”
