Credit - 2008-04-01
Articles in this issue
Profile - Nic Pifer
The portfolio manager and sector leader, global fixed income, at RiverSource Investments talks to Dalia Fahmy about what's behind the fund manager's rise up the rankings
The Big Interview - Philip Fischer
Merrill Lynch's municipal bond strategist explains to Dalia Fahmy why the muni market deserves to be better understood
Hybrids - The alchemists
Much like the early scientists of the Middle Ages who tried to turn base metal into gold, today's financial engineers are wrestling with the task of changing relatively worthless structured credit products into commercially viable and marketable assets…
Mortgage mergers
Unprecedented markdowns in the value of mortgage portfolios have left many mortgage banks vulnerable to takeover, with Countrywide already falling prey to Bank of America. But uncertainty over the scale of further losses is making potential buyers wary…
Legal Spotlight
Brian T Harvey explains the intricacies of the Bankruptcy Code and offers some strategies that could help creditors defend themselves against preference liability
Back to basics
We take you back to the credit basics to review everything you thought you already knew but were too afraid to ask... Quantifi founder and CEO Rohan Douglas explains how to take a bank to the brink of disaster - and back again
A call to arms
Covenants have been a cause of conflict between issuers and investors for as long as the bond market has been in existence. But now that appetite for lending has dipped, can investors use the crisis in credit to demand the best protection yet? Matthew…
Market Graphic - The Fed's firebreak
Banc of America Securities predicts the US Federal Bank's actions will lower the risk of further crises for investment banks, while also changing the regulatory landscape
RMBS investors sceptical over 'gold standard'
The creation of a gold standard for RMBS issues, as proposed by the UK government, could merely be another way of confirming the quality of the underlying assets and do little to help investors
Column - Max Bublitz
The huge expansion of credit did little for the US economy, so what can we expect next?
Credit risk: learning from the crunch
New business opportunities bring new risks. The market innovations that helped precipitate the credit crisis demonstrate that a complex new approach to risk management is required - and that means thinking beyond models based on derivatives and Basel II,…
Gloomy outlook forces credit analysts to jump ship
The credit market is losing the expertise of many leading analysts and strategists who are switching jobs in the worsening climate - at the very time when their research skills could be most needed
Talking Point - Regulation through the credit crisis
The role of the regulator has been highlighted by the ongoing turmoil in the credit market. What response can we expect from regulators in the months to come?
Hyman Minsky and the credit crisis: How much do regulators know about today's finance?
The credit markets experienced their very own 'Minsky moment' last summer, when great swathes of financial instruments imploded under the weight of their own debt. But should regulators have predicted this crisis and done something to prevent it? By…
Central banks pull together for second co-ordinated bailout
Banks launch another set of emergency auctions in reaction to ongoing liquidity pressures
Doubts that UK government kitemark scheme will fly
'Gold standard' plan for bonds gets mixed reception, with industry watchers divided over whether it gives the market much-needed direction or fails to offer any real assurances
Europe's mixed fortunes
Opinion
Liquidity at a premium
Opinion
Democrat proposals provide template for borrower bailout
Broad government support for troubled borrowers looks more likely in the wake of Fed action on Bear Stearns. Bills put forward by two leading US politicians point to what form it might take
Turning on tables
Basel II
More RMBS downgrades possible, warns Standard & Poor's
Rating agency simulations highlight that next 18 months could see ratings cuts and house prices fall
ECB repo facility 'may hinder securitisation market recovery'
Analysts warn that the European Central Bank's cheap funding is reducing banks' incentive to return to the public asset-backed securities market
Fannie Mae and Freddie Mac plan $200bn in mortgage purchases
US agencies ready to buy after housing regulator relaxes capital requirements
Credit tighter for certain
Opinion
Core value
First American CoreLogic is said to be close to finalising a deal with a rating agency to provide loan level data as part of industry efforts to improve transparency and standardise information. Han-Nee Tay talks to Walter Allen, senior vice-president of…
Deception and lies
Fraud
Valuing CDOs of ABSs
Charles Smithson and Neil Pearson discuss the valuation of collateralised debt obligations (CDOs), with a close look at CDOs of subprime residential mortage-backed securities
The right clients
A traditional approach to credit risk management is still the best, says Bill Lindsay of commercial property lender Eurohypo. Success depends on winning the best clients, he tells Rob Mannix