Quote To Start The Day: “It is during our darkest moments that we must focus to see the light.”

Source: Aristotle

One Big Thing In Fintech: An age-old concern in banking revolves around the risk of non-repayment.

Banks would have billions, at times, in loans to entities — everything from governments to businesses — and, given regulatory frameworks, they would be obliged to hold collateral in case of default.

In 1994, Blythe Masters of JPMorgan Chase & Co’s (NYSE:JPM) swaps team, pitched the idea of selling credit risk in return for fees. This meant that the bank would offload the risk of repayment in exchange for a fee. The entity that would then warehouse this risk would receive regular payments, freeing up capital for the bank, as a result.

The scheme was named the credit default swap, or CDS.

In light of the CDS market’s stabilization and growth, after the 2008 Financial Crisis, Benzinga spoke with DelphX Capital Markets’ (OTC:DPXCF) Patrick Wood on his firm’s intent to move the market into a new age.

Source: Benzinga

Other Key Fintech Developments:

Watch Out For This: Underbanked.

This term has been said, loosely, for far too long. There are millions in modern civilization with no access to financial services. A lack of trust and understanding are among the top factors to blame for this problem.

David Dwumah, a serial entrepreneur and ex-public and -private financial services expert with experience working at the likes of Citizens Financial Group Inc (NYSE:CFG) and the Federal Reserve, founded OurBanc, a member of the Council for Inclusive Capitalism, to extend digital banking to those without access.

Read below to learn more about Dwumah’s mission.

Source: Benzinga

Interesting Reads:

Market Moving Headline: While eurodollar futures and options are pricing in numerous quarter-point increases in 2022 and 2023, they’re pricing in just one after that, underscoring expectations for a relatively short and slight tightening cycle.

Source: Bloomberg