Credit risk
CME to launch portfolio margining on interest rate swaps and futures
Dealers will be able to cross-margin interest rate swaps, and eurodollar and Treasury futures, from May
US banks could lose competitive edge in Europe, says EIB
US regulations on mandatory clearing and uncleared margin could put US dealers at a competitive disadvantage in Europe, says EIB
European regulators undecided on initial margin rules for uncleared swaps
Counterparties will have to post variation margin on uncleared trades – but questions remain over which firms will have to post and collect initial margin
New CRD IV draft exempts sovereign trades from CVA capital charge
The latest council draft adds a CVA capital charge exemption for sovereign derivatives transactions – potentially removing one of the big unintended consequences of CRD IV, participants say
Despite MF Global, firms face weaker OTC safeguards
Segregated thinking
Show me the money: banks explore DVA hedging
Show me the money
More sovereigns edge towards two-way CSAs - and clearing
Towards two-way CSAs
Banks tout break clauses as capital mitigant
Breaking with tradition
Editorial: Ratings in moderation
Editorial
Lsoc should not be introduced for futures, CFTC hears
Lsoc is 'not fit for futures'
Indian corporates struggle with FCCB redemptions
Many Indian issuers of foreign currency convertible bonds maturing this year face defaulting on the debt after depressed equity prices force the companies to redeem rather than convert the bonds to equity
Danish and Latvian debt offices weigh two-way collateral
The costs of transacting swaps with one-way CSAs mean more debt offices could join Hungary, Ireland, Portugal and Sweden
Downgrade termination costs
Downgrade termination costs
Basel DVA capital deduction could cost banks billions
Billions of dollars in capital could be excluded under Basel proposals on derivatives DVA - with US banks hardest hit
Credit rating agencies: what are the alternatives for energy markets?
Beyond the big three
European capital rules could squash CVA feedback loop
European capital rules could squash CVA feedback loop
Eurex to offer full segregation in March launch of OTC clearing
Eurex Clearing plans to be the first OTC clearer to offer full segregation of collateral when it launches in March - demand has risen since MF Global collapse
Basel 2.5: US ratings workaround criticised
Workaround woes
Conversion of upfront CVA into running CVA
Conversion of upfront CVA into running CVA
Japan still backs EFSF despite threat to AAA rating
The expectation that Standard & Poor’s decision to downgrade France and Austria will have a knock-on impact on the EFSF will not deter further Japanese investment in its bonds, says Japanese official
The dollar dominance dispute
Disputes over the valuation of collateralised derivatives trades have pushed the industry to develop a new standard credit support annex. A solution has been proposed – but some Asian banks have raised concerns about the dominant role given to the US…
European Insurers face downgrades amid continuing sovereign debt crisis
Generali subsidiaries and Groupama receive downgrades; Aviva placed under review