Excess liquidity in the euro funding markets halved at the beginning of July, causing Eonia to leap higher. The extent of the move surprised traders and caused problems for some participants. Christopher Whittall reports
The eurozone crisis sent market participants scrambling to put on macro hedges. A popular trade was to short the euro, but with the cost of this strategy escalating, some turned to correlation products. By Christopher Whittall
Any withdrawal of liquidity by the ECB at year-end would cause major uncertainty, say bankers
Dealers eagerly watch European Central Bank tenders as new maintenance period is set to begin
Insolvency veteran Lomas to head Lehman Brothers International (Europe) (LBIE) administration in Pearson's absence.
Contrasting regulation for buyers and issuers of bank paper is adding to stress in funding markets.
Changes are planned to a key euro rates benchmark - and it could have a number of knock-on effects.
Regulators across the globe are intent on forcing over-the-counter derivatives through central clearing. How are supervisors in the Nordic region responding, and could the relative lack of liquidity in domestic markets hamper their efforts? By Christopher...
Many banks are now using their own cost of funding as a discount rate when pricing non-collateralised swaps trades. How are banks dealing with the difference in funding rates when quoting derivatives prices, and could this influence a client’s choice...
Changes in valuation were “relatively small”, says clearing house
Central counterparties are wrongly perceived as being more expensive than OTC transactions, says a leading economist.
Hedge funds seeking protection against deflation and dealer hedging of residual short floor positions are cited as the reasons for a rise in prices on euro zero-coupon inflation options.
Options trader also moves on
Proposed changes to accounting standards will remove some of the reporting freedom enjoyed by pension funds and could steer them away from investing in equities towards the relative safety of bonds and swaps – a development that could have an impact...
Intra-day credit debate re-surfaces as Lehman Brothers Holdings (Inc) (LBHI) accuses JP Morgan of coercing it into agreements that allowed JP Morgan to get hands on collateral
The German bank was not the only dealer to have temporarily put a stop to eurozone sovereign credit default swap trading
Traders incredulous as Bafin acts unilaterally to calm “extraordinary volatility”
It was a hectic start to the week for CVA traders, as the eurozone bailout shrank the exposures many faced, leaving them over-hedged.
Refinancing risk increases for Spanish banks as credit default swap (CDS) spreads widen dramatically for a third day running.
Plans by Lehman Brothers Holding Inc (LBHI) to disregard a majority of guarantee claims from its affiliates are not fair, according to one of the joint administrators of Lehman Brothers International (Europe) (LBIE).
The Committee on the Global Financial System has released a proposal recommending changes to dampen pro-cyclicality in margin practices and haircuts for securities financing and over-the-counter derivatives. How could this affect collateral management...
Learning from the default of Lehman Brothers, a growing number of prime brokers are adapting their business model to ensure margin is segregated and secure, with some looking to win third-party validation for the controls they have in place. Which firms...
Supervisors look to keep a firmer grip on securities lending haircuts to prevent asset bubbles from forming.
Prime brokers have focused on bolstering asset security for clients after billions of dollars of client assets were caught up in the administration of Lehman Brothers International (Europe) (LBIE).