Risk South Africa

Uncertain liquidity ratios

Like their counterparts elsewhere, South African banks are bracing themselves for a round of changes to Basel II rules. But it is the implications for liquidity and not capital that most concern market participants.

Minor activity

Although South Africa is a major commodity producer, activity by local investors in commodities is minor compared with other markets. While there are efforts to stimulate greater interest, these are being hampered by foreign exchange controls.

Risk South Africa rankings 2009

After the failure of Lehman Brothers, the global financial crisis has finally caught up with the South African derivatives market. Against this tough backdrop, Standard Bank has topped Risk's South Africa rankings once again. By Matt Cameron, with…

Absolutely fabulous

A readiness to adapt to changed market circumstances has generated an impressive track record for Cape Town-based Alpha Macro Managers’ Absolute Alpha Fund, helping it avoid the worst of last year’s market upset. By Mark Pengelly

A ripening market

Market dynamics and the chequered history of structured investments in South Africa have recently favoured vanilla products featuring capital protection. But some local issuers are gaining traction with more sophisticated offerings. John Ferry reports

Stung by BEE

Black economic empowerment has been a big source of profits for South African banks in recent years. But market turmoil means many deals are underwater, and some market participants have likened the situation to the US subprime mortgage crisis. Mark…

Mastering the storm

The succession of credit events in September and October revealed that many investors did not know what to do in the event of a default of a counterparty. What recourse do parties have under the Isda master agreement? By Joshua Cohn and Jillian Ashley

A time for special FX

Dealers are beginning to think a lot more seriously about credit-adjusting the prices they quote on foreign exchange derivatives. How are they calculating this, and how are clients responding to the move? By John Ferry

Bonding exchanges

The Bond Exchange of South Africa has been taking tentative steps towards expansion since its demutualisation in 2007. Now, its future looks intimately intertwined with that of its former rival, the Johannesburg Stock Exchange. Mark Pengelly reports

Gambling on dividends

Dividends have caused sizeable losses for dealers and investors over the recent months, as a precipitous fall in expectations has hit structured product issuers and those who participated in dividend swaps. Mark Pengelly investigates

Rainy day funds

Exchange-traded funds (ETFs) have continued to gain traction in South Africa despite roiling markets. As a result, local ETF providers are extending their reach to new investors and asset classes - with some even looking to introduce exchange-traded…

Adapt or fail

Since October last year, ructions in South Africa's foreign exchange rate have caused offshore hedge funds to exit the market, while dealers have been reluctant to take on risk. Those that remain active have had to adapt their behaviour as a result. By…

A regulated new year

Regulators are widely expected to increase their oversight of the financial sector in the coming year, with derivatives likely to come under particular scrutiny. As part of the current series of Class Notes articles, Charles Smithson and Steve Allen…

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