Credit - Volume 11 / Issue 7
Articles in this issue
FX volatility creates headaches for bond investors
Investors shift allocations to US dollar products as euro sinks.
NY Fed pushes for a more open OTC derivatives market: Theo Lubke profile
The head of the financial infrastructure group at the New York Fed tells Mark Pengelly why transparency is key to the functioning of the derivatives market.
Market Analysis: Hybrid and sub debt risk
Investors in bank subordinated debt and hybrid securities could be exposed to elevated credit risks if regulators push ahead with proposals whereby creditors bear losses before public sector support is given, says Fitch Ratings.
'Basel II was a big mistake': Larry Meyer exclusive interview
The former Fed governor, now vice-chairman of Macroeconomic Advisers, talks to Credit about the US central bank’s handling of the financial crisis, and gives his views on where US monetary policy is heading.
Corporates with emerging market operations prove attractive to bond investors
As growth in developing economies – particularly the Bric countries of Brazil, Russia, India and China – outstrips that of the developed world, companies with sizeable emerging market exposure are looking increasingly attractive to bond investors.
BP crisis pushes Big Oil further into deep water
As thousands of barrels of oil continue to spill into the Gulf of Mexico, energy giant BP has seen its bond spreads widen to unprecedented levels. What will be the implications for Big Oil, and can investors factor in tail risks of this magnitude?
Issuance slowdown raises refinancing fears for high yield borrowers
Corporate bond issuance plummeted in May, with issuers and investors wary of the effects of the ongoing sovereign crisis on the credit markets. Faced with an unprecedented refinancing wall, it may be high yield borrowers who suffer most.
US credit outlook: Pramerica, BlackRock & Alliance Bernstein
On a recent visit to New York, Credit met up with senior figures at three of the largest fixed income asset managers globally to hear their thoughts on where the US credit market is heading next and what the risks are for investors.
US Treasury yield movements betray deflation danger
Inflation often accompanies the end of the recovery after a crisis, but while US companies may fear high inflation, banks and investors increasingly see deflation as the more serious risk to the US economy.
Are US and Europe's economies at the point of divergence?
Strengthening fundamentals in the US and continued uncertainty over peripheral European economies have given rise to the notion that the US and Europe are undergoing a decoupling process. Credit looks at what this may mean for the US government bond and…
ECB pins hope on new rescue measures to save Eurozone
The commencement of the ECB’s government bond purchase programme and the announcement of an EU loan facility for struggling peripheral countries resulted in an immediate tightening of spreads. Yet uncertainty remains as to whether beneficiaries will be…
German agency KfW maintains its €75bn issuance target for 2010
The head of capital markets at KfW, Horst Seissinger, explains how building long-term relationships with investors has helped the bank achieve its funding targets even during periods of extreme volatility in the financial markets.
German economy under pressure from bank losses and euro crisis
Bond investors have snapped up German Bunds in recent weeks, with Europe’s sovereign debt crisis triggering a flight to quality. But is Germany really the safe haven it appears? Credit explores potential vulnerabilities in the German economy and assesses…
Deutsche Bank and Standard Chartered issue lower tier 2 paper
Lower tier 2 issues from Deutsche Bank and Standard Chartered in June proved that demand is there for subordinated paper from financial institutions.
Is the CFA qualification worth sweet FA? Caveat Emptor column
Chartered Financial Analyst, the qualification that is de rigueur for any aspiring fund manager, fails to address the principles of proper risk management.
The FDIC’s only safe harbour is from itself: Joseph Mason column
The US Court of Appeals has ruled against the FDIC in a case that gave rise to the regulator’s original safe harbour provisions for securitisation deals.
High yield spreads no longer correlated to default rates: Jerry Tempelman column
High yield spreads are more highly correlated to the VIX index than to default rates.
Economic concerns keep credit trading activity flat
Normal service appears to be a long way from resuming in credit, as macroeconomic uncertainty continues to grip the financial markets.
Credit Institute event: The outlook for high yield
June’s meeting of Credit Institute gave investors the opportunity to discuss the key themes affecting the high yield market, including the Eurozone sovereign crisis and refinancing risk.
Funding concerns for banks could prompt Basel III rethink
The deadline for the implementation of proposed regulation may be extended, as banks protest against the potential impact of stringent new capital and liquidity rules.
Stressing out over stress tests: Rob Davies column
Observers are expressing doubts over how useful the latest round of Cebs stress tests for European banks will be.
BIS warns against bank support
Time to draw a line on “emergency room treatment”, says Bank for International Settlements.
Regulators refute calls for Basel III rethink
Speculation that Basel Committee will scrap key proposals in bank capital framework is misplaced, say insiders.
US regulatory overhaul reaches final stages
Final version of Dodd-Frank financial reform bill tones down most draconian elements.
Eurozone has two years to agree fiscal union – DB Advisors
The viability of the Eurozone project continues to weigh on fixed income market, says chief investment officer of DB Advisors.
Nomura names Oz fixed income head
James Land leaves Westpac to boost Nomura’s fixed income team.
RBS appoints new director of US credit
Gary Davis takes senior role in credit and rates group.
Lloyds hires leveraged credit director
Ex-Evolution Securities sales director departs for Lloyds leveraged finance business.
RWC recruits from Threadneedle
Allwright and Frost to manage RWC Strategic Reserve Fund.
Ogata named SG head in Asia
Hikaru Ogata quits French rival BNP Paribas to become new chief executive at SG.
Jain takes sole charge at Deutsche Bank
Move puts Anshu Jain in pole position to succeed Josef Ackermann.
UBS hires emerging markets head
Can Uran leaves Bank of America Merrill Lynch for senior role at UBS
Knight expands capital markets team
Knight Capital hires new managing directors for capital markets business.
Jefferies recruits head of rates sales
Investment bank appoints Savelli-Timsit to lead French rates business.
Crédit Agricole boosts Asian fixed income team
Rowe departs Citi to head up Crédit Agricole’s Asian trading group.
BNP Paribas hires credit research chief
Arrival of McAdie and Fridson adds weight to BNP Paribas’ research effort.
Credit Awards 2010
Credit magazine unveils the winners of its annual awards for banks and service providers in the credit markets.
