Commodities/Commodities

Reliant to launch new hybrid weather-energy swap

Houston-based Reliant Energy appears to be attempting to take the mantle of industry innovator from troubled Enron by launching a new US natural gas index and associated hybrid swap contract that integrates energy and weather risk – the weather-sensitive…

Basel moves on disclosure

The Basel Committee on Banking Supervision recently announced two significant revisions to its new capital adequacy framework (new Basel Capital Accord or Basel II), which are set to have positive and far-reaching implications for the global banking…

Preparing for the worst

Small and medium-sized banks in the US and Europe are bracing themselves for Basel II. Gallagher Polyn examines how these institutions plan to adapt to the new Accord.

Pro-cyclicality in the new Basel Accord

Could Basel II worsen recessions? By backtesting the proposed capital rules to the last recession, D. Wilson Ervin and Tom Wilde argue that the increased risk sensitivity of loan portfolio regulatory capital in the new Accord could have unwelcome…