A decade of US asset and currency outperformance has engendered complacency among US-based equity investors, according to Merrill Lynch’s foreign exchange strategy group.
The Japanese credit default swaps (CDS) market ended the week quietly, with wider spreads reflecting general apathy as participants prepare to take a break for the three-day weekend, dealers said.
Credit protection on Japanese banks widened by about 20 to 30 basis points (bp) this week, as the sharp drop in the country’s equity market put pressure on bank margins and financial ratios.
Japanese credit default swaps remained directionless this week, with spreads moving up and down within a narrow range, in what was an overall quiet trading week, dealers said.
French bank BNP Paribas is preparing to close its seventh Japanese synthetic arbitrage collateralised debt obligation (CDO) under its Serena Finance programme, according to a senior Tokyo-based official at the bank.
Credit default swaps in Japan continued to narrow following a sell-off in the past week or two, although volumes remained low this week, Tokyo dealers said. Spreads on five-year debt protection for electronics sector companies tightened by as much as...
Japanese credit default swaps continued to recover this week, correcting a from a recent sell-off prompted by weak stock markets and general risk aversion on the market.
The cost of credit protection was higher on Japanese banks and some electronics names this week, amid a more stabilised market.
The cost of credit protection on Japanese companies continued to rise this week, as weakness in the stock market prompted many players to hedge their credit exposure.
Japan’s credit derivatives dealers have opted to drop ‘obligation acceleration’ and ‘repudiation/moratorium’ from the list of credit events for standard credit default swap transactions, bringing Japan in line with the European and US credit...
Japan’s credit default swap spreads widened across the board by about 20 basis points this week amid global equity nervousness, because of more corporate concerns, and a generally bearish market.
Japanese credit default swap spreads were wider this week, tracking the trends in the US and Europe in a generally bear market, traders said.
Japanese credit default swap spreads were wider this week, with investors buying protection on the back of new convertible bond issuance, more credit concerns and the possibility that accounting scandals seen in the US may spread to Japanese companies.
Japanese credit default swap spreads were slightly wider this week, but the US July 4 holiday and the beginning of the summer kept the market largely subdued following recent volatility, dealers said.
The cost of default protection on Japanese credits stabilised on Friday after Wednesday’s sharp widening caused by a $3.8 billion accounting scandal at US telecommunications group WorldCom, volatile equity markets and the steady strengthening of the...
Credit default swap spreads on Japanese technology names were wider this week, in part due to the decline in the technology-heavy Nasdaq equity market in the US but also due to a technical correction caused by range-bound trading, dealers said.
Spreads on Japanese credit default swaps were tighter this week, in what traders described as a technical correction after a raft of convertible bond issue hedges in the past couple of months had earlier forced spreads wider.
Swiss and UK banks are poised to be the main beneficiaries of the proposed new regulatory capital Accord, Basel II, according to results from the Basel Committee on Banking Supervision’s quantitative impact study 2.5 (QIS2.5).
Japan’s banks are protesting against Basel’s proposed operational risk capital charge. They claim their risk levels are much lower than those of banks from other countries, but there is little hard data available to back this claim up. Anthony Rowley...
The current Basel proposals could lead to the global spread of the type of systemic loan loss problems Japan is now experiencing, argues John Frye of the Federal Reserve Bank of Chicago.
The 1988 Basel Accord made bank capital rules more precise. But this did not save the Japanese banking system or slow the erosion of credit intermediation by US banks. Mark Brickell, managing director at JP Morgan in New York, has been an architect of...