Editor's letter
Comment
With Delphi's bankruptcy, a new Fed chairman and another restructuring plan from GM, it's not as if credit investors don't have enough to keep track of. But just to add to the day job, there's a whole host of new products on offer for responsible portfolio managers to keep abreast of. This month we've done the hard work for you: the issue is a veritable smorgasbord of new opportunities for your delectation.
Take the latest generation of collateralised debt obligations (CDOs) to hit the shelves this season: leveraged super-senior CDOs are the market's current hot product, born out of the sudden demise of mezzanine CDOs after the correlation repricing in May. The advantage is higher yields and default rates "unprecedented in the history of the credit markets", trumpets Nicolas Christen, senior structurer at BNP Paribas, in our feature starting on p. 48. The downside, warns our In the City column (p. 19) is that as these structures are often supplied by unrated hedge funds that could disappear when the going gets tough, they are akin to buying disaster insurance that disappears the moment the hurricane hits.
As well as new products, new markets are also becoming increasingly accessible to credit investors. In our cover story this month, we highlight one rapidly growing area that conventional investors should start paying attention to. As the soaring cost of oil sucks a surplus of dollars into the Middle East, Islamic finance is currently enjoying a boom period. With the market's growing sophistication – the first ever Islamic convertible bond is expected out of Malaysia any time now – and non-Islamic countries such as Germany getting in on the action, Hardeep Dhillon explains everything you need to know about Islamic bonds, starting on p. 42.
I hope you enjoy the issue.
Nikki Marmery, Editor
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Credit markets
Single-name CDS trading bounces back
Volumes are up as Covid-driven support fuels opportunity for traders and investors
Podcast: Richard Martin on improving credit migration models
Star quant proposes a new model for predicting changes in bond ratings
CME to pass on Ice CDS administration charges
Clearing house to hike CDS index trade fees from July after Ice’s determinations committee takeover
Buy side fuels boom in single-name CDS clearing
Ice single-name CDS volumes double year on year following switch to semi-annual rolls
Ice to clear single-name bank CDSs from April 10
US participants will be able to start clearing CDSs referencing Ice clearing members
iHeart CDS saga sparks debate over credit rules
Trigger decision highlights product's weaknesses, warns Milbank’s Williams
TLAC-driven CDS index change tipped for September
UK and Swiss bank Holdco CDSs likely inclusions in next iTraxx index roll, say strategists
Fears that bumper coupon could skew iHeart CDS payouts
Market pushes for change to auction date amid fears of reduced single-name and index CDS payouts
Most read
- Top 10 operational risks for 2024
- Regulators’ FRTB estimates based on faulty premise – industry study
- Top 10 op risks: AI fears drive cyber risk to record high