Central banks
Revitalising the markets
Governments are facing unprecedented pressure to finance bank rescue schemes through huge debt issuance. With supply coming thick and fast, the UK Debt Management Office (DMO) has been steering a hazardous path to place its debt into the markets. Until…
Column: Charles Cronin
Flawed models, conflicts of interest, ineffectual leadership: the rating agencies have emerged from the financial crisis with little credit, and reform may strip them further of their influence
Inflated expectations
It may seem counterintuitive, given these deflationary times, but inflation-linked fixed income strategies are proving a hit with investors as fiscal stimulus raises the threat that inflation will take over in the medium term. William Rhode reports
Financial pricing for the 21st century
Putting a price on assets for which no active market exists is a process mired in complexity and no little controversy. But the pricing models of yesteryear are simply not up to the job. David Patrikarakos looks at the new generation of valuation models…
Product performance
Two products common to the UK market and one that is well-known in the US - all three with the same strike date - are the subject of this month's comparisons
EC issues remuneration principles for risk takers
Daily news headlines
Bank lending continues to fall in Europe and US
The first quarter of 2009 saw the supply of credit from banks to the wider economy continue to decline, although the riskiness of interbank lending has remained stable.
BoE stability chief: Financial network needs 'rethinking'
The growth of complexity and widespread pursuit of similar products and strategies has created a fragile financial network in need of reform, according to a senior Bank of England (BoE) official.
FSF: Valuation techniques and leverage aggravate pro-cyclicality
Regulators should address the pro-cyclical effects of market-sensitive valuation practices and increasing leverage, according to the Financial Stability Forum (FSF).
City of London defends OTC derivatives markets
Political pressure for reform risks crushing the over-the-counter derivatives market, warns a report published today by the City of London.
Auctions held on credit derivatives referencing three US companies
Three credit event auctions run by data vendor Markit and broker Creditex have determined final settlement values for credit derivatives trades referencing Missouri-based cable operator Charter Communications, Pennsylvania-based financial services firm…
Fed divulges process behind bank stress tests
The US Federal Reserve has released details of the methodology behind its Supervisory Capital Assessment Programme (SCAP), the recently concluded stress tests conducted by regulators to ascertain whether additional capital replenishment is needed at the…
Isda AGM: US regulator identifies six weaknesses in OTC market
Theo Lubke, senior vice-president at the Federal Reserve Bank of New York, identified six main problem areas in the over-the-counter derivatives market during a panel discussion on public policy at the International Swaps and Derivatives Association's…
Isda AGM: trillions in derivatives torn up since June
Multilateral tear-up efforts continue to bear fruit, with notional outstanding reduced by several trillion dollars, according to a report released by the International Swaps and Derivatives Association at its annual general meeting in Beijing.
Investec rolls out eighth tranche of products
Investec has rolled out the latest versions of its product range, continuing a successful run among UK investors. The launch includes a new capital guaranteed offering structured around a deposit which pays income linked to the performance of the FTSE…
CashCade offers choice between cash and index returns
Cashcade Financial, a joint venture between Meteor Capital Holdings and actuarial consultancy Intersolve, has launched its CashCade Deposit Plan which is designed to allow investors the choice of linking the interest payment between either the FTSE 100…
US Wrap: Post-holiday rush sees reverse convertible flurry
ABN Amro issued nearly all the 13 notes issued in the US yesterday, of which 11 were reverse convertibles linked to a variety of the usual suspects, such as US Steel, JP Morgan, Freeport, Caterpillar and Wells Fargo, and the slightly less common…
US Wrap: Principal protection makes timid reappearance
One principal protected structure made it into the US market yesterday after hints earlier this week that guaranteed notes might be making a tentative reappearance. Credit Suisse's range-bound note was the second this week to offer 100% principal…
Volatility puts credit investors on the defensive
Investors are gravitating towards safe haven sectors such as utilities and telecoms as credit fundamentals on non-cyclicals continue to deteriorate
On the crest of a wave
Corporate bond volumes have been soaring as companies scramble to meet their funding requirements in the wake of the loan market's demise. Simon Boughey looks at whether this wave of issuance is a temporary phenomenon or whether it heralds a permanent…
Turbulent times for airport issuers
Europe's airports are tightening their belts as macroeconomic pressures erode balance sheets and credit quality. Alexandre de Lestrange from Standard & Poor's reviews the factors influencing the agency's rating decisions on the 12 airport issuers