Infrastructure/Risk management
What to do with the toxic debt
The issue of how to tackle the vast quantities of impaired assets lingering on banks' balance sheets has given rise to several possible solutions, chief among which is the notion of a 'bad bank'. Credit asks five market participants how such a scheme…
'Big bang' protocol provides wake-up call for CDS market over credit event settlement
A new scheme for adjudicating on credit event auctions, consisting of a centralised committee, will replace the old system of ad hoc decision-making
Q&A: Dottie Cunningham
The CEO of the Commercial Mortgage Securities Association talks about the likely effect of the TALF scheme on the CMBS market
Missing link
Banks are unable - or unwilling - to hold bond inventory for resale in the secondary markets, meaning that their traditional role as middleman in the buying and selling of bonds is not being fulfilled. William Rhode looks at whether things will continue…
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Basel II
Investec rolls latest offerings off production line
Investec Structured Products has launched its seventh suite of structured trades comprising accumulation, investment and income plans all linked to the FTSE 100 index. In the income category is the five-year FTSE 100 and RPI Combination Plan 6, which…
Low recovery rates set for Ferretti LCDS
At an auction held today, data vendor Markit and broker Creditex determined a final settlement value of 10.875% for loan-only credit default swaps (LCDS) referencing Italian luxury yacht manufacturer Ferretti, meaning protection sellers would need to pay…
New single-name CDS sparks hedging worries
Plans to reshape the US single-name credit default swap (CDS) market are causing concerns among some credit portfolio managers, due to a limit on their ability to get capital relief for hedges under Basel II.
Liffe blames regulatory uncertainty for lack of CDS clearing
Despite being the only firm to launch a centralised clearing platform for credit default swap (CDS) index trades, London-based derivatives exchange NYSE Liffe has yet to clear any trades, a situation it blames on the uncertain regulatory landscape in…
LCH.Clearnet bid sparks conflict-of-interest debate
A proposal by a consortium of major derivatives dealers to acquire London-based clearing house LCH.Clearnet has led to suggestions that banks becoming intimately involved in the clearing process could present a conflict of interest.